The Landlord's Complete Guide to 2025/2026 Regulatory Changes

Everything UK landlords need to know: from the Renters’ Rights Act and new eviction rules to EPC upgrades, tax changes, and the insurance implications of each.

The UK private rental sector is going through its most significant transformation in a generation. The National Residential Landlords Association (NRLA) has described the scale of what is happening as the biggest shake-up in 40 years. Whether you own a single buy-to-let property or manage a portfolio, 2025 and 2026 bring changes that will affect how you let, what you pay, and how you need to operate.

This guide is designed to help UK landlords, experienced and new alike, navigate those changes clearly, understand the key dates, and take action before the deadlines arrive. It also identifies where each regulatory change carries insurance implications, so you can review your cover alongside your compliance obligations.

📋 This guide covers: The Renters’ Rights Act 2025, EPC minimum standards for 2030, Making Tax Digital, property tax changes, and what is still coming. Each section includes key dates, what you need to do, and links to further reading.

Change 1: The Renters’ Rights Act 2025

In Force from 1 May 2026

The Renters’ Rights Act received Royal Assent on 27 October 2025 and its core reforms are currently expected to come into effect on 1 May 2026. This is expected to be one of the most wide-reaching changes to residential tenancy law in decades, fundamentally altering the legal relationship between landlords and tenants in England.

Below is a breakdown of the key changes and what each means in practice.

End of Section 21 ‘No-Fault’ Evictions

Section 21 notices, which allow landlords to end a tenancy without providing a reason, are expected to be abolished under the current legislation. All Section 21 notices must be served by 30 April 2026 and any court proceedings must be initiated by 31 July 2026. After these dates, landlords will only be able to regain possession via Section 8 grounds, which require a specific reason such as rent arrears, anti-social behaviour, or the landlord’s intention to sell.

⚠️ Section 21 deadline: Notices must be served by 30 April 2026. Court proceedings must begin by 31 July 2026. After these dates, Section 21 ceases to be a valid route to possession.

All Tenancies Become Periodic from 1 May 2026

All Assured Shorthold Tenancies (ASTs), including existing fixed-term agreements, will automatically convert to Assured Periodic Tenancies on 1 May 2026. There will be no more fixed-term tenancies in the private rented sector. Tenancies will roll on a monthly (or weekly) basis with proper notice periods required on both sides.

Rent Increases

Landlords will be limited to one rent increase per year, served via a Section 13 notice with a minimum of two months’ notice. Landlords will not be able to increase rent by more than the market rate, and tenants will have a clear route to challenge increases they consider excessive through a First-tier Tribunal.

Rental Bidding Wars Banned

Landlords and letting agents will be required to advertise a fixed asking price for a property. Inviting or accepting offers above that price, including informal bidding between competing applicants, will be prohibited.

Upfront Rent Capped at One Month

Landlords will no longer be able to request more than one month’s rent in advance. This removes the current practice of asking for several months upfront, which has historically excluded certain tenant groups from the market.

No Discrimination Against Benefit Claimants or Families

Blanket bans on renting to tenants in receipt of housing benefit, or to those with children, will be outlawed. Landlords will not be able to advertise or operate such policies.

First-Year Tenancy Protection

Landlords will not be able to evict tenants within the first year of a tenancy, except under the following specific grounds:

Serious rent arrears
Anti-social behaviour
Needing to sell the property
Wanting to move into the property
Major renovation works

Selling a Property with Tenants

If a landlord decides to sell a property, they must wait until a tenant has been in residence for at least six months before serving notice. They must then provide four months’ written notice of their intention to sell. In practice, this means landlords should plan for at least ten months from when a tenancy begins before a property can be listed for sale.

Mandatory Information Sheet

Landlords must serve an official Information Sheet to all existing tenants by 31 May 2026. Failure to do so may result in fines of up to £7,000, depending on enforcement.

The Information Sheet has been produced by the Government specifically for tenants and is a four-page document explaining their rights under the new legislation, covering areas such as the move to periodic tenancies, how rent increases will work, and the new protections against eviction. Landlords are required to serve this document as-is; it is not something you produce yourself.

You can download the official Information Sheet directly from GOV.UK: https://www.gov.uk/government/publications/the-renters-rights-act-information-sheet-2026

PRS Database and Private Landlord Ombudsman

Two further elements are expected in late 2026. A Private Rented Sector (PRS) Database will require landlords to register their properties, with mandatory membership expected to be phased in from late 2026 to approximately 2028. A Private Landlord Ombudsman will also be established, providing a dispute resolution service that bypasses the courts, with a confirmed launch expected in late 2026.

Insurance Implications: Renters’ Rights Act

The removal of Section 21 changes the risk profile of letting in a meaningful way. Recovering possession of a property when something goes wrong will take longer and may require legal proceedings. This makes two types of cover particularly important:

Rent Guarantee Insurance: If a tenant stops paying rent and you cannot serve a Section 21 notice to recover the property quickly, rent guarantee insurance may help protect your income during the arrears period and the time it takes to obtain a possession order through the courts.
Legal Expenses Cover: Pursuing possession via Section 8 grounds involves legal costs, which can be substantial. Legal expenses cover may contribute to solicitor fees and court costs.

⚠️ With Section 21 abolished, any eviction will require a legal process under Section 8. Rent guarantee insurance and legal expenses cover are now more relevant than ever for landlords letting in England.

You may wish to review your landlord insurance options to ensure you have appropriate cover in place ahead of 1 May 2026. You can explore options via our Landlord Insurance page.

Change 2: EPC Minimum Standards – Rating C by 1 October 2030

The current minimum Energy Performance Certificate (EPC) rating for private rented properties in England and Wales is E. From 1 October 2030, all privately rented properties will need to achieve a minimum EPC rating of C before a new tenancy can be started, and ultimately for all tenancies by that date.

With approximately 52% of private rented sector properties currently rated below EPC C, representing around 2.5 million properties, this is one of the most operationally significant changes landlords will face over the coming years.

What Landlords Need to Know

Current proposals indicate a £10,000 spending cap (previously proposed at £15,000).
Upgrade costs incurred from October 2025 onwards count toward the £10,000 cap, so landlords who begin works now are not starting the clock from zero.
Properties that already hold an EPC C rating before October 2029 remain compliant until that certificate expires (EPC certificates have a 10-year validity).
Fines for non-compliance can reach up to £30,000.
Exemptions are available in certain circumstances, including where the £10,000 spending cap would be exceeded, for heritage or listed properties, or where a tenant has refused to allow access for improvement works.
The EPC assessment system itself is being overhauled from late 2027, with four new performance metrics replacing the current single rating. This may affect how properties are assessed going forward.

A Note for Leasehold Flat Landlords

Landlords subletting flats within a block face a particular challenge: many of the improvements required to achieve an EPC C rating, such as external wall insulation or communal heating upgrades, fall under the freeholder or management company’s control, not the individual landlord’s.

Where a freeholder refuses consent for necessary works, a third-party consent exemption is available. However, this exemption is not automatic. Landlords must demonstrate they have made best efforts to obtain consent, provide written evidence of the refusal, and formally register the exemption on the PRS Exemptions Register. The exemption lasts for five years, after which the position must be reassessed.

Landlords should still carry out any improvements within their own power, such as upgrading heating controls, draught-proofing, or replacing windows where the lease permits, before seeking the exemption for works beyond their control.

Failing to act or register a valid exemption may result in non-compliance. Failure to either meet the EPC C standard or register a valid exemption remains a compliance breach, with fines of up to £30,000 still applicable.

💡 Upgrade costs from October 2025 count toward the £10,000 spending cap. If you have properties that need improvement work, starting now means those costs are on the clock, and could be the most cost-effective approach.

Insurance Implications: EPC Upgrades

EPC improvement works can range from installing loft insulation or double glazing to more substantial works such as replacing a boiler, fitting external wall insulation, or installing a heat pump. Larger projects may require a property to be vacated temporarily.

This is where many landlords are caught out. Standard landlord insurance policies typically include a clause that limits or excludes cover if a property is left unoccupied for more than 30 consecutive days. A major renovation or retrofit project could easily exceed this period.

If your property will be empty during upgrade works, you should check your current policy and consider whether Unoccupied Property Insurance is required to maintain protection during that period. This specialist cover is designed specifically for properties vacant beyond the standard policy limits.

⚠️ Standard landlord insurance may not cover a property left empty for more than 30 consecutive days. If EPC upgrade works require the property to be vacant, check whether you need specialist Unoccupied Property Insurance.

Change 3: Making Tax Digital for Income Tax

Mandatory from April 2026

Making Tax Digital (MTD) for Income Tax is being introduced in phases. From 6 April 2026, digital quarterly reporting to HMRC is scheduled to be mandatory for landlords with combined gross income, from property and any self-employment, exceeding £50,000 per year.

The threshold then drops to £30,000 from April 2027, and to £20,000 from April 2028, meaning the majority of landlords will eventually be required to comply.

What This Means in Practice

Quarterly digital submissions to HMRC replace the annual Self Assessment tax return.
Landlords must sign up for MTD, choose HMRC-compatible software, and begin digital record-keeping before the relevant April deadline.
Research by Simply Business in August 2025 found that 68% of landlords felt unprepared for MTD.
Landlords with combined income below £50,000 have until April 2027 before the obligation applies to them, but the window to prepare is shrinking.

Review Your Cover While You’re Reviewing Everything Else

MTD signals a broader shift toward more professional, documented property management. As many landlords review their finances, records and property valuations ahead of the April 2026 deadline, it is also an appropriate time to check whether your landlord insurance policy accurately reflects your portfolio.

Consider whether your cover reflects current property values, accounts for all properties in your portfolio, and includes the protections most relevant to how you let. You can review options via our Landlord Insurance page.

Change 4: Tax Changes – SDLT, CGT, and Property Income Tax

Alongside the legislative changes to tenancy law and energy standards, landlords are also contending with a series of tax changes that have either already taken effect or are confirmed for the next few years.

Stamp Duty Land Tax (SDLT)

The surcharge on additional residential properties, that is, any property beyond a landlord’s main home, has already increased to 5%, up from 3%, effective from 31 October 2024. The standard SDLT nil-rate band also reverted from £250,000 back to £125,000 from April 2025, which compounds the cost of new purchases for landlords who had grown accustomed to the higher threshold.

Capital Gains Tax (CGT)

The CGT annual exempt amount has been cut substantially, from £12,300 in 2022/23 to just £3,000 currently. CGT rates on residential property are 18% for basic-rate taxpayers and 24% for higher-rate taxpayers. For landlords selling properties in their portfolio, these changes significantly reduce the tax-free allowance available on gains.

Property Income Tax from April 2027

There have been discussions and proposals around future changes to property income taxation. From April 2027, property income tax rates will rise by 2% across the board.

However, landlords should verify the latest position with HMRC or a qualified tax adviser, as details may change in due course.

Incorporation Relief

From April 2026, landlords looking to incorporate their property portfolio into a limited company will need to actively claim incorporation relief. It will no longer be applied automatically. Landlords considering this route should seek advice from a qualified accountant before the April 2026 deadline.

High Value Council Tax Surcharge

Properties valued at over £2 million will be subject to a ‘mansion tax’ style High Value Council Tax Surcharge from April 2028. This applies to a relatively small number of properties but is worth flagging for portfolio landlords with high-value assets.

ℹ️ These tax changes are best reviewed with a qualified accountant or tax adviser who can assess the impact on your specific portfolio and circumstances. This guide provides an overview only.

Change 5: What’s Still to Come – Phase 2 and Beyond

Several further changes are confirmed in principle but do not yet have firm implementation dates. These are worth flagging now so you can monitor progress and prepare accordingly.

Private Rented Sector (PRS) Database

A mandatory landlord registration database is being introduced with a staggered rollout beginning in late 2026. All landlords are expected to be required to register by approximately 2028. Registration will likely require landlords to evidence compliance with key obligations, including EPC ratings, gas safety certificates, and deposit protection.

Private Landlord Ombudsman

A compulsory Ombudsman scheme for private landlords is confirmed for late 2026. This will provide tenants and landlords with a formal, out-of-court dispute resolution mechanism. Membership will be mandatory for landlords operating in England.

Awaab’s Law – Extension to Private Sector

Awaab’s Law, which already applies to social housing and requires landlords to fix serious damp and mould within strict timeframes, is being extended to the private rented sector. The timescales for private sector implementation are still under consultation. Once confirmed, failure to comply within the required timeframes could result in significant legal exposure.

Decent Homes Standard

A statutory Decent Homes Standard for the private rented sector is under consultation. This will set minimum physical standards for rental properties. Implementation is not expected until 2035 at the earliest, but the direction of travel is clear: minimum standards for private rentals will increase progressively over the coming decade.

🔄 These changes do not yet have confirmed dates. Keep an eye out for when they get confirmed and updated.

Key Dates at a Glance

The table below summarises the key regulatory dates and their insurance implications. This can serve as a quick reference checklist for landlords reviewing their obligations.

Date	What Changes	Insurance Implication
31 Oct 2024	SDLT surcharge increased to 5% for additional properties	Higher acquisition costs; review portfolio cover
1 Apr 2025	SDLT nil-rate band reverted to £125,000	Further cost pressure for new BTL purchases
27 Oct 2025	Renters’ Rights Act receives Royal Assent	Review tenancy and liability cover now
Oct 2025 onwards	EPC upgrade costs count toward 2030 £10,000 cap	Vacant property during works; check unoccupied cover
6 Apr 2026	MTD for Income Tax mandatory for £50k+ earners	Review that insurance reflects current property values
30 Apr 2026	Last date to serve valid Section 21 notice	Ensure rent guarantee and legal expenses are in place
1 May 2026	Renters’ Rights Act Phase 1 in force; all ASTs become periodic	Rent guarantee insurance now critical for all landlords
31 May 2026	Deadline to serve Information Sheet to existing tenants (£7,000 fine)	Confirm landlord insurance is fully up to date
31 Jul 2026	Last date to begin possession proceedings under Section 21	Legal expenses cover strongly advisable
Late 2026	PRS Database rollout begins; Ombudsman launches	Compliance documentation; review as confirmed
6 Apr 2027	MTD extended to £30k+ earners; property income tax rates rise 2%	Review portfolio profitability and insured values
1 Oct 2030	EPC C minimum for all private rentals – fines up to £30,000	Full cover review; vacant property insurance if works required

The Insurance Implications: A Summary for Landlords

Regulatory change and insurance are often discussed separately, but the two are closely connected. Each of the changes covered in this guide carries a degree of financial risk that appropriate insurance may help manage. Below is a summary of the cover types most relevant to landlords in light of the current changes.

Landlord Insurance

The foundation of any landlord’s risk management. A good policy typically includes buildings insurance, loss of rent cover, property owners’ liability, and protection against tenant-related damage. With rental law changing significantly from May 2026, it is worth reviewing your policy to ensure it remains appropriate. Find out more on our Landlord Insurance page.

Rent Guarantee Insurance

With Section 21 abolished, recovering possession from a non-paying tenant is likely to take significantly longer. Rent guarantee insurance may help cover lost rental income during arrears periods and while possession proceedings are underway. This has moved from a ‘nice to have’ to a genuinely important consideration for many landlords.

Legal Expenses Cover

Possession proceedings under Section 8 require legal process. Legal expenses cover can contribute to solicitor and court costs. Without it, landlords may face significant out-of-pocket costs even in straightforward cases.

Unoccupied Property Insurance

Properties vacant for longer than the standard period permitted under a landlord insurance policy, typically 30 consecutive days, may lose certain protections. This is relevant during EPC upgrade works, major renovations, or periods between tenancies. See our Unoccupied Property Insurance page for more information.

Buildings and Contents Insurance

As property values and rebuild costs continue to change, it is worth ensuring your sum insured remains accurate. Underinsurance can leave a significant gap in the event of a major claim. Read more in our guide to buildings and contents cover.

✅ Reviewing your insurance alongside your compliance obligations is not just good practice – it is increasingly important given the pace and scale of change currently affecting the private rented sector.

The Landlord’s Complete Guide to 2025/2026 Regulatory Changes

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