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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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  • Jan 15, 2025
  • 3 min read

It takes courage to decide to halt the expansion of your brand after getting off to a flying start. However, Sanj Sanghera and Laura Bruce, founders of Doner Shack, had a long-term plan for global dominance which they recognised would require a new direction to achieve.


In today’s competitive market, many brands treat expansion like a race, prioritising rapid growth over building a solid operational foundation. This short-sighted approach often leads to significant issues down the line, such as closures or struggling franchisees who are forced to bear the financial burden of implementing new systems, upgrading equipment or redesigning fit-outs to meet evolving brand standards. Without taking the time to refine processes, ensure consistency and create a scalable infrastructure, these brands risk sacrificing quality and profitability for the sake of speed, ultimately jeopardising long-term success.


In this article, Sanj and Laura discuss the benefits of pausing expansion and taking a step back in order to build a solid foundation which supports the future of your business and how this has led to global expansion and Elite Franchise 100 status for Doner Shack.


Halting Growth Is Not For The Faint-Hearted

First things first – let’s address the elephant in the room. Taking a step back is often perceived as a sign of failure but, for Doner Shack, it was the recipe for success. Sometimes, stepping back isn’t about retreating – it’s about setting the stage for a greater leap forward. Rapid growth can sometimes be a bad thing – scaling too quickly can lead to inconsistent operations across locations, diluting brand quality and leading to subpar customer experiences.


For fast casual restaurants, flavours, experiences and service need to be in sync across your operation before adding more locations, suppliers and moving parts. By strategically halting expansion, you allow time for your business to gain clarity and time to build a resilient foundation for meaningful, scalable growth.


“We’re focused on growing our franchise network by attracting ambitious individuals with the drive to become multi-unit franchisees. Doner Shack is rapidly gaining an impressive reputation as a leading franchise brand in the fast casual sector, and we are now ready to scale up internationally, backed by the strong groundwork we’ve laid to support expansion,” said Laura.


Space For Innovation

Halting expansion creates space to innovate. Doner Shack completely shook up the kebab scene when it introduced items such as sliders and loaded fries which gave its signature doner products a modern twist. In the same way, taking a strategic pause also provided an opportunity for the business to refine and strengthen its supply chain operations. This included optimising procurement processes, streamlining logistics and fostering more robust relationships with suppliers. By addressing these areas proactively, Doner Shack built a more resilient and efficient supply chain capable of supporting future growth sustainably.


“We spent valuable time on the brand repositioning, determined to avoid early stagnation for our fast casual restaurant model."

"The results show that our British restaurants are now welcoming customers back two to three times a month on average with month-on-month sales up 35% on the previous year – thanks to a 60% increase in delivery sales and 12% in-restaurant,” added Sanj.


A Step Back For A Leap Forward

For franchise-based fast casual restaurants like Doner Shack, taking a step back allows for enhanced support to current franchisees, fostering their success and creating a solid foundation for future franchise expansion.


Doner Shack’s decision to pause expansion has been instrumental in securing master franchise deals in India and establishing a solid foundation for their upcoming launch in the United States. Through a strategic rebrand and menu refresh, they successfully modernised their offerings, positioning themselves as a game-changer in the fast-casual dining industry. Their International Franchise Association (IFA) membership further enhanced their global credibility, providing valuable resources and connections to support their international growth. This deliberate approach has enabled Doner Shack to confidently enter new markets while preserving their reputation for quality and innovation.


“We’re now ready and really excited to be putting an international foot forward. It’s our responsibility to be conscientious and put us in a great position for the brand worldwide."

"In our quest for global dominance, we have formed a strong head office team with the right mix of professional skills, all of whom are passionate and committed to driving the brand forward,” said Sanj.


Not only did halting expansion provide Doner Shack with the opportunity to expand globally but has since gained the brand recognition as one of the top franchising opportunities in the UK, securing a place in the Elite Franchise Top 100 list. This achievement not only highlights the success of their pause strategy but also reinforces Doner Shack’s position as a trailblazer in the fast-casual dining sector, setting the stage for continued growth and international success.


For further information about Doner Shack, visit www.donershack.uk/franchise

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