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Private Property Landlords Facing Compliance Headache



Private property landlords are facing a significant compliance change in the private rented sector (PRS) in 2026, with the introduction of Making Tax Digital in April and the Renters Rights’ Act this month.


Tom Young, Director and property specialist at HWB Chartered Accountants in Hampshire, believes this could lead to considerable frustration and confusion across the sector. Making Tax Digital, the most significant change to the UK’s personal tax system since Self-Assessment was introduced in 1997, was launched on 6 April 2026.


Property landlords – along with sole traders – with gross annual income above £50,000 from property and/or self-employment must now comply with the legislation. Digital records of income and expenses must be kept using HMRC-approved MTD-compatible software and submitted to HMRC on a quarterly basis as well as a final end-of-year declaration.

Tom said:

“There are a significant number of landlords, particularly those without accountancy representation that are unaware of MTD and the reporting requirements."

“It is concerning that this remains the case when the first quarterly update, covering the period April to June is due on 7 August. Confusion at this stage is not a good sign and is certainly indicative of a lack of public information on the subject."


“Although HMRC is not imposing any penalties for non-compliance in the first year, I fear there will be a lot of frustration to come, especially when the threshold reduces to £30,000 next year and £20,000 the year after."


“On the flip side, this a major shift from the traditional annual Self-Assessment process to a system that is much closer to real-time reporting, which will allow landlords to monitor the performance of their portfolios and make astute strategic decisions."


“We urge landlords to not hesitate and act swiftly in taking regulated professional advice if they have yet to register for MTD. It is important to be proactive and ready for the next two milestones even if they are not in the scope of the legislation for 2026.”


Latest available figures show that there are around 2.82 million private landlords in the UK, of which around 94% are private individuals. Around two-fifths (43%) of UK landlords have just one property in their portfolio.


The Renters’ Rights Act was introduced on 1 May and strengthens the rights of tenants by abolishing Section 21 ‘No-Fault’ Evictions. It also ends fixed-term contracts in favour of rolling ones, limits rent increases to once per annum, bans bidding wars and makes it illegal to discriminate against people because they have children or are on benefits.


Tom added:

“Given that local councils may impose a civil penalty of up to £40,000 or, in some cases, start a criminal prosecution for non-compliance, is it any wonder that private landlords are feeling hard done by."

“It is, of course, imperative that renters’ rights are protected, but we believe the vast majority of private landlords are honest, upstanding citizens who pride themselves on being scrupulously fair."


Landlords must provide tenants with the official Renters’ Rights Act Information Sheet 2026 by 31 May 2026 and may incur fines up to £7,000 per tenancy if they fail to do so. The information sheet provided to tenants must be the official PDF from GOV.UK and cannot be altered.


“Last year the value of the private rental sector declined by 5.1 per cent, or £48 billion, with 15% of South East landlords planning to sell this year. Some 220,000 rental properties are expected to disappear this year, many being put on Airbnb instead. That’s a big chunk of private accommodation lost."


“Thus, we could have a situation where the Government’s stated intentions behind the Renters’ Rights Act could have exactly the opposite effect – constricting the market, restricting choice and driving up rents.”


It was also reported last week that Chancellor Rachel Reeves was considering imposing a one-year rent freeze on private-sector homes to help mitigate rising household costs due to the Iran war. The idea had previously been ruled out, but ministers were said to be open to discussions on a limited period ban on rent increases in the next few weeks.


The National Residential Landlords Association has warned that the move would be a ‘disaster’ for landlord and investor confidence, drive new rents higher and potentially lead to a downturn in the supply of private rented homes.


Tom added: “Private landlords are facing possibly the most challenging and stress-inducing period for a generation. The sensible course of action is to seek professional help.”


Property is a sector that requires professional technical expertise and the specialist property accountant’s team at HWB has many years’ experience supporting and advising landlords, managing and letting agents on all aspects of the sector.


The firm acts for a range of clients holding property portfolios, including residential property investors, buy-to-let landlords, developers, construction firms, care homes, architects, managing and letting agents and estate agents.


The team provide bookkeeping, MTD reporting, management reporting, VAT returns, preparation of statutory accounts, company secretarial services and property tax advice for individuals, partnerships and corporate entities.


Chartered accountants HWB, based at Chandler’s Ford, near Southampton, provides business and tax advice.


Photo: Tom Young, Director and property specialist at HWB Chartered Accountants, says property landlords in the private rented sector (PRS) are facing the most challenging times for a generation

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Leading Scottish hospitality group Buzzworks has announced its recent collaboration with Mark Maynard, esteemed hospitality consultant, leadership coach, and keynote speaker, as part of its ongoing commitment to enhancing company culture and driving sustainable growth.


The partnership with Maynard Consulting, which specialises in hospitality, leadership, operations, and organisational culture, began in 2023, and was inspired by Buzzworks’ dedication to creating exceptional experiences for both employees and guests.


Mark’s wealth of expertise, honed over decades of work with Danny Meyer’s Union Square Hospitality Group (USHG), has brought fresh insights and strategies to Buzzworks as it continues its journey of expansion and innovation.


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“One memorable highlight of Mark’s visit was his inspiring talk with the team, where he shared a story about the impact of small, intentional actions in shaping company culture. This moment resonated deeply with the team, reinforcing Buzzworks’ belief that every individual plays a critical role in the company’s success."


“Looking forward, Mark’s guidance has helped us refine our strategies for sustainable, people-driven growth. We’ll also focus on developing training initiatives that align with his suggestions, empowering our team to deliver consistently exceptional experiences.”

The partnership has already sparked new energy within Buzzworks, with Mark’s ideas influencing the company’s approach to guest interactions, team training, and internal processes. Following the collaboration, Buzzworks plans to implement strategies that prioritise the employee experience, ensuring that its culture remains the backbone of its growth.


Mark commented: “It’s been an honour to get to know Kenny and the Buzzworks team, and I am thrilled to play a small part in the meaningful work they are already doing. I feel like a coach of a championship player, and my role is to further enhance their stellar performance."


“I am struck by the organisation’s deep commitment to taking care of people – the team and customers alike – and I am thrilled that our work together has the potential to enhance the impact Buzzworks makes in the communities within which it operates.”

The award-winning company offers an aspirational dining and entertainment experience across Scotland through its other stylish brands – Lido, Scotts, House, Vic’s & The Vine, The Duke, Thirty Knots, The Bridge Inn, The Fox and Herringbone.

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