Private Property Landlords Facing Compliance Headache

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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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Nov 15, 2024
3 min read

A mum has hailed a borough council joiner as a hero after he helped to save her daughter.

Sian Berridge says she will be eternally grateful to Paul Flanagan, who came to the aid of three-year old Gracie-Rae.

Sian found Gracie-Rae choking on a lollipop at their home in Sileby last month and ran outside in search of help, where she found Paul, widely known by his nickname “Bob”, who had been working on a nearby property.

Bob leapt into action and eventually managed to dislodge the lolly from the youngster’s throat. Gracie-Rae was taken to hospital to be checked over before being given the all-clear. Mother-of-three Sian firmly believes that Bob’s actions saved her daughter’s life.

“My two older kids were upstairs and I went into the kitchen to get a charger,” Sian said. “When I came out I noticed Gracie in the hallway, gasping and going blue, and then I saw the stick with no lolly on it. The lolly must have come off in her mouth."

“I just freaked out. You know what to do but when it actually happens, you just panic. So I scooped her up and took her outside, shouting ‘help me, help me, help me’.

“Bob happened to be the first person I saw and he just took her straight away, turned her on to her front and starting patting her back. The lolly didn’t come up but he definitely dislodged it to the point that it went down. Then he just held her for the longest time, making sure she was ok. He was brilliant."

“My neighbour then called an ambulance and we had to go to the hospital to get her checked out but thankfully everything was alright. Gracie is on the spectrum for autism and says very few words but she actually said, ‘help me’, which brought tears to my eyes as I’ve never heard her say that before."

“Afterwards, I was very tearful, couldn’t stop crying, relieved but also in shock. I can’t thank Bob enough – my dad still wants to take him for a pint! He’s a hero. He saved my little girl’s life and I will forever be thankful to him.”

Bob worked for the council via an agency for five years but only recently became a full-time employee in the voids repairs team.

He said: “It was only my second week on the job and I was just packing up at the end of the day, when I saw Sian and Gracie-Rae. It all just happened so quickly that I didn’t really have time to think about it. I just did what I could."

“But after I got home and everything had quietened down, it suddenly hit me and I did get a bit emotional. I am just glad everything worked out and Gracie-Rae was ok.”

Bob went back to see Gracie-Rae the following day to see how she was. A grateful Sian, meanwhile, later contacted the Council as she wanted to make sure his efforts were recognised.

“I’m a bit humbled, to be honest, and quite proud, if that’s the right word,” added Bob.

Rob Mitchell, chief executive of Charnwood Borough Council, said:

“On behalf of Charnwood Borough Council, I’d like to extend our heartfelt gratitude to Bob for his quick-thinking and action. We are really pleased Gracie-Rae is doing ok and that Bob was able to help.We are incredibly proud of him and grateful for his brave response in such a critical moment.”

For advice on how to stop a child from choking, visit here.

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Private Property Landlords Facing Compliance Headache

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