If you’re a landlord in the UK right now, you’re probably feeling the squeeze from every direction. Between new legislation, rising compliance demands, slow‑moving mortgage rates, and more taxes on the horizon.
Many landlords have sold their investments to cash in on returns and avoid the stress. However, the decision to sell can have immediate tax implications, including potential capital gains taxes, which can eat into your profit.
We strongly recommend seeking advice before taking any such action. If you are a client, please contact your usual manager for guidance.
Let’s break down what’s happening and why so many landlords are feeling the pressure.
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The Renters’ Rights Act: The Biggest Shake‑Up in a Generation
From 1 May 2026, the Renters Rights Act comes fully into force, significantly changing the landscape for landlords.
Here’s what’s changing:
Abolition of Section 21 “No‑Fault” Evictions
Landlords will no longer be able to remove tenants without giving a legally valid reason. Section 21 notices are being abolished.
All Tenancies Become Periodic
Fixed-term tenancies will effectively disappear, replaced by rolling periodic tenancies, increasing tenants’ security and reducing predictability for landlords.
Stricter Rules on Rent Increases and Upfront Payments
- Rent can only be increased once per year.
- Tenants must receive two months’ notice.
- No more rent bidding, landlords must accept the advertised price.
New Pet Rights, Anti‑Discrimination Rules & Written Information Duties
Starting May 2026, landlords are required to provide tenants with a detailed written statement and follow new regulations concerning pets, advertising, and anti-discrimination.
A National Landlord Database & Ombudsman Coming Later in 2026
Landlords will need to register properties, and tenants will gain access to a free complaints service.
These changes aim to protect renters; however, they could also increase administrative tasks, compliance costs, and exposure to risk for landlords. While these new rules may seem to create significant challenges, remember that if you are a responsible landlord, you are likely already following many of these practices.
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Mortgage Interest Rates Still High, Still Stubborn
While inflation has stabilised, mortgage interest rates have not dropped as quickly as landlords hoped. Many buy‑to‑let mortgages taken out in the last decade are now coming off fixed rates and moving to significantly higher repayments.
This squeeze is happening at the same time as the Renters’ Rights Act increases restrictions on raising rents or adjusting tenancy agreements, making it harder for landlords to offset rising mortgage costs.
Prior to the recent Middle Eastern conflict, we were all eagerly anticipating an interest rate cut tomorrow (March 19, 2026), but this now seems less likely. As of mid-March 2026, the UK mortgage market is navigating some challenges, with lenders adjusting rates and withdrawing products amid inflation concerns stemming from the global situation.
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Making Tax Digital (MTD) Arrives April 2026
From 6 April 2026, many landlords will no longer be able to submit one annual Self-Assessment return. Instead, those with income over £50,000 must:
- keep digital records,
- use approved software, and
- submit quarterly updates to HMRC.
For landlords already stretched thin, MTD brings:
- new software costs,
- more frequent deadlines,
- higher risk of penalties for missed submissions.
We have invested in training and resources to make sure our clients are ready. If you need help with this, get in touch. Here’s how we help landlords like you.
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A New 2% Tax on Profits Is Arriving
Taking effect from the new tax year, landlords will be hit with an additional 2% tax on profits.
Combined with frozen tax thresholds and rising costs, these extra 2% pushes profitability down even further.
If you are not working with experts yet to file your tax returns, now may be a good time to start. You need to have a trusted advisor by your side to make sure you get all the tax reliefs you are entitled to.
Final Thoughts
It’s no surprise that many “accidental landlords” and small portfolio owners are weighing their options in the current market.
The good news is that these changes impact landlords differently based on factors like income, mortgage status, property type, and your long-term ambitions!
So, what’s your next move as a landlord? Let’s explore your options together and find the best path forward!
Here are the top 5 steps we recommend you take right now:
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Review your portfolio – property by property.
Profitability is changing. Some properties may no longer be viable under new rules. If you are not sure how to do this, speak to us, and we can help you.
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Review your why.
Are you clear on why you became a landlord in the first place? Was it to:
- Boost your retirement income?
- Boost your current income?
- Leave assets to the next generation.
- Help your children.
- Benefit from the appreciation of the value of the property?
Much of what is going on now will not affect the above objectives in the long run. However, there will be changes in the short-term cash-flow position and legislative adjustments.
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Get ahead of MTD.
Don’t wait to get your software and systems ready now. April is nearly here.
We have already reached out to you if you are a client and if you are affected by this change. So please don’t leave it to the last minute to start the preparation.
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Understand how the Renters’ Rights Act affects you.
Especially the end of Section 21 and the annual rent increase limits. If you are working with a letting agent, speak to them.
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Stress‑test your mortgage situation.
Calculate how your repayments and tax changes will combine over the next 24 months. The best approach is a simple forecast. Again, we can do this for you; please speak to your usual manager.
Being a landlord in 2026 demands greater preparation, resilience, and professional guidance than ever before. Treating it like a regular business is essential for achieving your goals. With the right support, it is still possible to operate profitably while complying with regulations.
If you’re feeling overwhelmed, you’re not alone, and we’re here to help. We are serious about you and your ambitions
Our team works closely with landlords every day, helping them navigate legislation, understand tax changes, and plan confidently for the future.
If you are not yet working with us, have a look at how we help landlords.