The Renters’ Rights Act and Other 2026 Reforms for Landlords

Wed 24 December 2025 PaTMa

2026 is shaping up to be a year of change for UK landlords.

From May 1st, the Renters’ Rights Act 2025 will be rolled out in phases, marking the most significant reform of the private rented sector in decades. Landlords will need to understand the new legislation and make changes to the way they run their property rental businesses to comply with the new requirements.

But that’s not all. April 2026 will also see the introduction of Making Tax Digital for Income Tax, which requires landlords with income over certain thresholds to transition to digital record-keeping and online tax submissions.

If being a landlord in 2026 feels daunting, you can use this guide to help keep you on track. Below, we’ve highlighted all the key legislative changes expected in 2026 and tips to help you prepare.

The Renters’ Rights Act 2026

What is the Renters’ Rights Act?

If you’re a landlord, you might be feeling a little tired of hearing about the Renter’s Rights Act. The Bill was first published in September 2024, and since then, it has been a subject of ongoing debate. It was given Royal Assent on October 27th, 2025, at which point it became the Renters’ Rights Act, and the final, enacted version was published.

The Renters’ Rights Act was created by Keir Starmer’s Labour government, with the aim of giving renters greater security and stability. The reforms contained within it will help to strengthen tenant rights and create a fairer private rental market. They will be rolled out gradually in phases, starting from May 1st, 2026.

Renters’ Rights Act timeline of key changes

Let’s explore the key changes the Renters’ Rights Act 2025 will introduce and when each is expected to come into effect according to the government’s roadmap.

Phase 1: From May 1st 2026

End of Section 21 Evictions: The Act will abolish Section 21 ‘no fault’ evictions, which currently allow landlords to evict tenants without a reason, providing they give two months’ notice. Without Section 21 evictions, landlords will only be able to evict tenants using one of the allowable reasons under Section 8.
Strengthened Section 8 grounds for eviction: With Section 21 evictions abolished, landlords will need to rely on the amended Section 8 grounds to evict tenants. These will be strengthened to include grounds like significant rent arrears, anti-social behaviour, or the landlord wishing to sell the property or move in a family member.
All tenancies to become periodic: All fixed-term, assured shorthold tenancies will be replaced by periodic tenancies with no fixed end date. This move to rolling contracts provides tenants with greater flexibility as they can leave whenever they want, but makes tenancies less predictable for landlords.
Rent increase restrictions: Landlords will only be allowed to increase rent once per year and only to the market rate. To do so, they will need to serve tenants a formal Section 13 notice, and tenants will have the right to dispute the increase at a tribunal if they believe it to be unfair.
Strengthen tenant rights to pet ownership: Currently, landlords have the right to ban pets from their properties. Under the new rules, landlords will only be able to say no to pets in their property if they have reasonable grounds to do so.

Phase 2: Late 2026

Private Rented Sector Ombudsman: The Act will introduce the new Private Rented Sector Ombudsman, an independent body that will help to resolve tenant complaints away from the courts.
Private Rented Sector Database: All landlords will need to register on a new Private Rented Sector database and pay an annual fee.

Phase 3

Decent Homes Standard applied to the Private Rented Sector: For the first time, PRS landlords will be required to comply with the Decent Homes Standard, ensuring that their properties meet minimum safety and quality standards.

These are the key changes that landlords need to prepare for, but this is by no means an exhaustive list. You can visit the Gov.uk website to read the Renters’ Rights Act in full.

What should landlords do to prepare for the Renters’ Rights Act?

If you haven’t already, the first thing you need to do to prepare for the upcoming changes is put aside some time to sit down and read the new legislation and make sure you understand what it means for your business.

Being organised and proactive about updating legal documents and processes ahead of the deadlines will reduce stress and minimise the risk of receiving a penalty or facing legal action for non-compliance.

Below, we’ve listed some key steps you can take to ensure your property portfolio is ready when the reforms are rolled out.

Review and update existing tenancy agreements and documents

Update to reflect the new grounds for eviction.
Update fixed AST agreements to periodic tenancy agreements.
Review and update notice periods.
Update or insert clauses about keeping pets in the property.
Update complaint procedure to include information about the Ombudsman.

Review insurance policies

Consider adding rent guarantee insurance.
Check if pet-related damage is included and add coverage if needed.

Review rent rates

Update all current rents to the market rate before May 2026.
Set up a reminder using landlord software like PaTMa to review rent annually.
Learn how to issue a Section 13 notice of a rent increase.

Review your budget

Budget for Ombudsman membership fees.
Budget for PRS Database registration fee.

Communicate all relevant changes clearly with tenants

PaTMa’s Property Manager software helps landlords to meet legal requirements, avoid costly penalties, and maintain compliance with ease using automatic reminders, unlimited compliance document storage, and step-by-step compliance checklists.

Making Tax Digital for Landlords

What is Making Tax Digital?

Making Tax Digital (MTD) is a government initiative that aims to digitise the UK tax system. First announced in 2015, it has been a long time coming for landlords! The initiative aims to simplify tax management and reduce errors. MTD has already been in effect for VAT-registered businesses since 2022. As of April 6th 2026, MTD for Income Tax will apply to landlords whose annual sole trader or property income exceeds £50,000. This will be extended to those with annual income more than £30,000 from April 2027.

Once MTD comes into effect in April, all affected landlords will need to sign up for MTD-compatible software like PaTMa for their bookkeeping and tax management.

The new way of working will require landlords to use MTD-compatible software to:

Record all income and expenses digitally.
Submit digital quarterly updates to HMRC.
Complete their annual Final Declaration online.

If you don’t currently use software for your bookkeeping, there may be a slight learning curve as you adapt to the new way of working. But in the long run, transitioning to digital bookkeeping and tax management has significant benefits - reducing the risk of human error, saving you time, improving security, and providing access to really useful, real-time financial reports.

What should landlords do to prepare for Making Tax Digital?

With Making Tax Digital only a couple of months away, now is the ideal time to start preparing - if you haven’t already!

Check whether you meet the income threshold: MTD only applies from April 2026 if your gross income (total rent) is £50,000 or more.
Sign up for MTD-compatible software and start using it now: If you already use software, check whether it is compatible with MTD; if it’s not, you’ll need to switch. PaTMa is both compatible and one of the most user-friendly and intuitive property management software options out there, making it easy to get up and running with digital bookkeeping straight away. Don’t put it off! Start using software now, and you’ll know exactly what you’re doing by the time the deadline arrives.
Review your banking setup: MTD works best when you separate your business and personal accounts so that personal and rental expenses aren’t all mixed up.
Organise your financial documents: Make sure you’ve got a clear process for gathering and recording all financial documents, including bank statements, invoices, receipts, and mortgage interest statements.
Digitise your income and expense records: Get used to recording all of your income and expenses digitally. With PaTMa, you can link your bank account or integrate our software with Xero to automate much of the time-consuming data entry and tax preparation.
Speak to your accountant: If you use an accountant, speak to them early to find out whether you’ll need to do anything differently once MTD comes into effect.

You can learn more about Making Tax Digital for landlords in the government policy paper on the Gov.uk website.

How can PaTMa help landlords comply with the Renters' Rights Act and MTD?

Landlords will need reliable, specialist software to help them comply with both the Renters’ Rights Act and Making Tax Digital in 2026. The right tools can save time, reduce errors, and help landlords comply with the new laws. PaTMa is a specialist software that brings everything together in one place and streamlines property management.

It complies with MTD and provides landlords with all the tools they need to manage property income, expenses, and tax submissions online. It’s not just a tool for digital tax reporting; it also features a wide range of tools designed to help you streamline day-to-day property management and comply with the Renters’ Rights Act.

Let’s look at some of the things you can do with PaTMa’s user-friendly software:

Record income and expenses digitally.
Link your bank account to automate transaction imports.
Store important documents and property data in one secure, central location.
Set reminders for rent reviews and other important tasks and deadlines.
Log tenant communication.
Generate real-time financial and performance reports.
Prepare and submit quarterly digital tax submissions to HMRC.
Manage compliance tasks.
Stay on top of daily admin using built-in task management tools.

Book a demo or sign up for a free trial to see just how simple PaTMa is to use.