Landlords will be navigating a challenging landscape in 2026.

The upcoming reforms to tenancy law through the Renters’ Rights Bill (and related legislation), which aim to enhance tenant protections are of particular interest.

For example, fixed term assured tenancies could be abolished and the “no-fault” eviction under Section 21 (England and Wales) of the Housing Act 1988 is set to be eliminated.

This increases regulatory complexity and reduces the security landlords once took for granted.

On top of this, regulatory and cost burdens are mounting. Landlords must prepare for new minimum energy-efficiency standards: properties being let will increasingly need a minimum EPC rating (for example band C) by 2028/30.

The investment required for upgrades is significant, especially for older properties, and many landlords fear it may not be financially viable.

Meanwhile another big hurdle is the economic squeeze. Many landlords face higher borrowing costs, increased maintenance and compliance expenses, and reduced headroom for managing risk.

At the same time, the supply of rental housing is being squeezed: many landlords are choosing to reduce their portfolios or exit the sector entirely due to dampened confidence.

And finally, there are local areas of uncertainty – for example tax policy, licensing regimes and selective licensing schemes at local authority level, if the chancellor of the Exchequer can get caught out, so can you.

This combination of legislative change, cost pressures and uncertainty means that for many landlords the business of letting is becoming less straightforward and less predictable.

What can you do about it? Well, we do this for a living, and we have years of experience handling complex large estates of properties. Come in and speak to us about your option, there’s nothing we haven’t seen before.

Here are the top 5 challenges facing UK landlords in 2026

1. Regulatory overhaul: Tenancy law reform

The biggest change is the forthcoming Renters’ Rights Bill (England & Wales) which will radically reshape many aspects of the private rented sector.
Case-study: Many smaller landlords report they may exit the market due to uncertainty from the Bill. For example, a survey from landlord today found 12 % of buy-to-let landlords intend to sell properties this year citing regulatory burdens.
What you can do: Review your existing tenancy agreements now, plan for how you will operate when fixed-terms may be replaced by rolling periodic tenancies, update your processes for possession (since “no-fault” evictions under Section 21 will go).

2. Energy efficiency & property standards

Landlords must brace for steep compliance costs. For instance, from December 2025 newly let properties may need a minimum EPC (Energy Performance Certificate).
Case-study: Industry commentary warns nearly half of current rental homes need investment to get from a D rating to C – many landlords fear this will push them out.
What you can do: Audit your property portfolio now for EPC ratings, identify insulation, boiler or glazing upgrades; build a budget for compliance and investigate any grant or loan support.

3. Rising costs & investment squeeze

Landlords are facing higher borrowing costs, tax changes, and growing compliance burdens that squeeze margins.
Case-study: Data shows individual operators exiting the rental market: nearly 30,000 landlords left in the past year, many citing margins and regulatory risk.
What you can do: Re-cost your portfolio under realistic interest and compliance cost assumptions, review whether you hold properties via your own name or a limited company (tax treatment differs) and consider whether you need to reduce debt or sell underperforming assets.

4. Increased enforcement & compliance risk

Landlords must navigate a growing body of rules (licensing, sanctions checks, property standards) and face heavier penalties for non-compliance.
Case-study: The expansion of selective licensing schemes in many local authorities means some landlords may face licensing fees of £500-£1,000 per property, or fines for non-compliance.
What you can do: Sandy is in Central Bedfordshire where there are no selective-licensing zones. Ensure your letting agent (or you if self-managed) complies with sanctions and advertising rules, maintain records of every compliance activity.

5. Supply & exit risk: Landlords leaving the sector

Because of the above pressures, there is an emerging trend of landlords downsizing or exiting the market.
Case-study: Research indicates more than a third of landlords are considering leaving within the next year in response to regulatory reforms.
What you can do: If you are considering exiting, plan the timing to minimise tax cost (capital gains, SDLT when buying new), review the condition of the property (since selling may expose you to remedial costs), and consider whether to reposition the asset (e.g., sell to another investor) or convert it (e.g., sell as owner-occupier). At Lane & Browns we know local investors who may be interested in speaking with you.

Conclusion

The rental market for UK landlords is facing major headwinds: sweeping legislation, rising compliance/upgrade costs, increased regulatory scrutiny, and potential supply contraction.

But these headwinds also present an opportunity for prepared landlords who act early, there is the chance to rebalance portfolios, upgrade properties, and adapt business models to a shifting landscape.

We can help you with this, just pick up the phone and speak to one of our experts at Lane & Browns in Banks Drive, Sandy. We’ll help you, every step of the way.

UK Landlord 2025 Checklist

What to audit, update and plan for the year ahead

1) Legal & Tenancy Reforms

• Review all tenancy agreements — prepare for Renters’ Rights Bill and the end of Section 21 (no-fault) evictions.
• Update notice procedures to rely on Section 8 grounds instead.
• Audit your records: deposit protection, prescribed information, right-to-rent checks.
• Refresh your tenant communication policy — new laws will emphasise transparency and fairness.

2) Property Standards & Energy Efficiency

• Check EPC ratings for all properties.
• Identify what upgrades (insulation, heating, glazing) are required to reach EPC C by 2028.
• Obtain quotes and create a five-year upgrade budget plan.
• Research available green grants or local energy-efficiency loans.

3) Financial Resilience

• Review mortgage deals — consider locking in fixed-rates where possible.
• Recalculate cashflow and yield including maintenance and compliance costs.
• Assess if a limited company structure might offer tax efficiency.
• Build a reserve fund for voids and repairs (target: 3–6 months’ rent).

4) Compliance & Licensing

• Verify if your properties fall under selective or additional licensing zones.
• Renew or apply for relevant HMO licences.
• Keep a compliance log for safety checks: gas, EICR, smoke alarms, legionella, fire safety.

5) Strategy & Exit Planning

• Review portfolio performance — identify low-yield or high-risk assets.
• Consider diversification: HMOs, short-lets, or student housing.
• If selling, plan for capital gains tax and choose an optimal disposal timeline.

For more independent advice and knowledge, talk to an expert, talk to us. 01767 691122