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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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The last resident of the World War Two ghost village of Tyneham in Dorset has died aged 100.

Peter Wellman made a final visit last year to see the place where he was born and brought up.

The ‘village that died for England’ was evacuated just before Christmas in 1943 to enable the army to extend its ranges.


Around 250 people from Tyneham and the valley farms were forced out, but promised they could return when Hitler had been seen off. But they were never allowed back. While still on MoD land, the ruins of the village and the walk to the beach at Warbarrow Bay are open to the public for 160 days of the year and remain a moment in time that was frozen.


The school that Peter went to and the church at which attendance was mandatory have been restored, but the rest is decaying with time. Peter, who was born in Tyneham in 1924 passed away from pneumonia on April 29th in Swanage, not far from his boyhood home.


His daughter Lynne said:

“Dad always loved Tyneham and he visited regularly until he had a fall a few years ago. He was delighted when we took him back last year. He loved talking to people there and telling them about the village and what life was like. He moved out of Tyneham before the war due to work, but not far away. Then in 1943 everyone was forced out."

“He had been living happily in Swanage and died peacefully in his sleep after suffering from pneumonia.”


On his last visit to Tyneham Peter recalled his childhood:

“We had no electricity, no mains gas and no running water – we had to pump that from near the church. There’s a tap there now. I remember going to the beach and fishing and we often had mackerel. We were happy until we got moved out.”

Peter, whose family connections to Tyneham go back many generations and whose grandfather was the shepherd, attended the little single-room school.


He said he ‘scribbled like anyone else would’ and when the school closed in 1933 when he was nine, he spent several years attending another school by bus. At 14 he started work on a nearby farm where he stayed for 36 years and then he had a job in the clay industry until retirement.


Many of the villagers enjoyed long lives and Peter put it down to the lifestyle.

“Fresh air is the main thing,” he said, “and hard work with a good heart and a contented mind. That’s how you live.”

Peter said he didn’t regret leaving the village because there was little there for younger people, but would have liked the residents to return.


“They were told they could come back,” he said, “but they were never allowed.”


Peter recalled watching a dogfight in the sky above the fields he was working in during the war, and waving at the Spitfire pilot who downed an enemy plane. The village was owned by the Bond family who lived in the grand Tyneham House that is now mostly gone. They were resistant to modernity meaning life in the village in 1943 was much like it had been a century earlier.


After a campaign led by campaigner Rodney Legg to allow the residents back, the MoD in 1975 permitted people to visit what was left, and it has become an increasingly popular place for day-trippers and tourists.


Peter was also the last person to speak with an authentic Tyneham valley voice, which has a rich, velvety Dorset burr. Peter, a widower, had two children, two grandchildren, three great grandchildren and two great great grandchildren.


Elise Neville from James Smith Funeral Directors, part of the Douch Family Funeral Group, who is arranging the funeral, said:

“Peter is the last living link to the village of Tyneham and with him departs a piece of history."

“So many of the small communities in and around the Isle of Purbeck have families who go back many generations, and Peter's is one of them. It is a great privilege to arrange Peter’s funeral.”

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