Landlords face their ‘annus horribilis’

Landlords face their ‘annus horribilis’

2026 is going to be a difficult year for landlords.

Dramatic legal changes are coming.

The Renters’ Rights Act is set to come into force from 1 May 2026, with extensive reforms to private renting.  

Section 21 no-fault evictions are no longer applicable. Landlords can only evict a tenant on valid legal grounds, such as significant rent arrears or antisocial behaviour. 

Under the Renters Rights Act 2026, tenancies will automatically transition to periodic agreements. This eliminates fixed-term tenancies, which are typically set for 6 or 12 months, and removes a predetermined end date. 

Tenancies will operate on a rolling, open-ended basis until the tenant voluntarily leaves or the landlord provides a valid legal reason to terminate the agreement. This will limit the ability of landlords to easily regain the property, and the formal legal process can be lengthy.  

Tenants will have stronger protections on rent payments, notice periods and how tenancy relationships operate.  

And then there will be Making Tax Digital (MTD).

Landlords with a gross annual income from property and self-employment of £50,000 or more in the 2024-2025 tax year, will start to use Making Tax Digital for Income Tax from April 2026.  

Landlords will need to sign up for MTD on the HMRC website and complete the relevant registration. 

From 6 April 2026 landlords will digitally record all business income and expenses using commercially available software (Xero have a software product for landlords costing £7 plus VAT per month). However bridging software will also be available for those who insist on clinging to their spreadsheets!

Landlords then submit quarterly income and expenditure summaries and a Final Declaration at the year end. They must file the first quarterly period ending 5 July 2026, by 7 August 2026.

The government has produced a toolkit MTD Toolkit to help prepare for these change.

 

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