The 2026 Landlord Survival Guide: Everything That's Changing and What To Do

The 5 biggest changes coming in 2026: at a glance

1. Section 21 is abolished from 1 May 2026

Section 21 — the 'no-fault' eviction notice — is abolished from 1 May 2026. After this date, landlords cannot serve new Section 21 notices. All evictions must use Section 8 grounds, which require a specific legal reason. A transition period runs until 31 July 2026 for notices already served.

What Section 21 currently allows

Under the current rules, landlords can serve a Section 21 notice to end an assured shorthold tenancy without giving any reason. With two months' notice, the tenant must leave. If they don't, you apply to court for a possession order — and because you don't need a specific ground, the court must grant it.

This has been the primary mechanism for regaining possession of a property since the Housing Act 1988. It was used for selling properties, renovating, moving in, or simply ending a tenancy that wasn't working out.

From 1 May 2026, it is gone.

Key dates for Section 21

If you've served a Section 21 notice before 1 May 2026 and started court proceedings, your case can continue through the transition. But any notice that expires without court action by 31 July 2026 becomes invalid.

What replaces Section 21: Section 8 grounds

Section 8 possession grounds become the only eviction route from 1 May 2026. Unlike Section 21, you must specify a reason. The Renters' Rights Act adds two new grounds for sale and family occupation, and modifies notice periods on some existing grounds.

Mandatory grounds (court must grant possession if ground is proven):

• Ground 1: Landlord or close family wants to live in the property — four months' notice, only after 12 months of tenancy
• Ground 1A (NEW): Landlord intends to sell the property — four months' notice, only after 12 months of tenancy
• Ground 2: Mortgage lender exercising power of sale
• Ground 6: Demolition or substantial works
• Ground 8: At least two months' rent arrears at time of notice and at hearing

Discretionary grounds (court considers whether it's reasonable to grant possession):

• Ground 10: Some rent arrears
• Ground 11: Persistent late payment, even if arrears cleared
• Ground 12: Breach of any tenancy obligation
• Ground 14: Antisocial behaviour or criminal conviction
• Ground 17: Tenant obtained tenancy via false statement

The critical difference: mandatory grounds mean the court must grant possession once you prove the ground. Discretionary grounds mean the court weighs whether granting possession is reasonable — and may refuse even if the ground is proven.

Using Grounds 1 and 1A (sale and family occupation)

The two new grounds are the closest replacement for Section 21 when you need the property back for personal reasons. But they come with restrictions:

• You can only use them after the tenant has been in the property for at least 12 months
• You must give four months' notice (compared to two months for Section 21)
• For Ground 1A (sale), you must demonstrate genuine intent to sell and the property must be marketed within a set timeframe after the tenant vacates
• If you re-let within 12 months after using either ground instead of selling or occupying, you face financial penalties and potential criminal liability

What to do now

If you have a possession situation you've been planning to use Section 21 for — a property you want to sell, a tenancy that isn't working, a property you want to renovate — you need to decide now whether to serve a Section 21 notice before 30 April 2026 or switch your strategy to Section 8.

Read our detailed Section 8 eviction guide and the Renters' Rights Act guide for full coverage of what each ground requires in practice.

2. Making Tax Digital becomes mandatory in April 2026

Making Tax Digital for Income Tax (MTD for IT) is mandatory from April 2026 for landlords and self-employed people with income over £50,000. It requires quarterly digital submissions to HMRC using approved software. Non-compliance carries financial penalties from the start of the 2026/27 tax year.

What Making Tax Digital actually requires

MTD for Income Tax replaces the annual Self Assessment tax return for income above the threshold. Instead of one annual submission, you must:

• Keep digital records of all property income and expenses using HMRC-recognised software
• Submit a quarterly update to HMRC for each property business (and each self-employment business if applicable)
• Submit a final declaration at the end of the tax year (replacing the Self Assessment return)

The four quarterly periods run from 6 April to 5 July, 6 July to 5 October, 6 October to 5 January, and 6 January to 5 April. Each quarter's update must be submitted within one month of the period ending.

Who is affected and when

The £50,000 threshold applies to your gross property income — that is, total rent received, not profit after expenses. If your rental portfolio generates £50,000 or more in annual rent, MTD applies to you from April 2026 regardless of whether you make a profit.

If you also have self-employment income, both sources are combined when assessing whether you meet the threshold. A landlord earning £35,000 in rent and £20,000 from freelance work would cross £50,000 and be caught from April 2026.

Software requirements

You must use HMRC-recognised software to keep digital records and submit quarterly updates. Spreadsheets alone — even complex Excel systems — are not compliant with MTD. You need software that can:

• Record income and expenses digitally as they occur
• Submit quarterly updates directly to HMRC via MTD-compatible APIs
• Produce the final declaration at year end

HMRC publishes a list of compatible software on their website. Some options are free for basic use; others are subscription-based. Landlord-specific software that also handles property and tenancy management is preferable to general accounting tools that weren't built with rental income in mind.

LandlordOS is building HMRC MTD submission support — read our full MTD guide for what to look for in compliant software.

Penalties for non-compliance

HMRC's new points-based penalty system applies to MTD late submissions:

• Each late submission earns one penalty point
• At four penalty points, a £200 financial penalty is triggered
• Further £200 penalties for each subsequent late submission after that
• Separate late payment interest applies to any tax paid late

The penalty threshold resets to zero if you file on time for a full year (12 months). Missing quarterly submissions will accumulate points quickly — four quarters puts you at the penalty threshold in the first year.

What to do now

If you're over the £50,000 threshold, you need to be using compliant software by 5 April 2026 — the end of the 2025/26 tax year. The first quarterly update under MTD covers the period 6 April 2026 to 5 July 2026, due by 5 August 2026.

Steps to take immediately:

• Confirm whether you're over the £50,000 threshold (use your 2024/25 Self Assessment figures)
• Select and sign up to HMRC-recognised property management or accounting software
• Migrate your existing records into the new system before April 2026
• Consider speaking to a tax adviser if your property portfolio has multiple income streams

3. All tenancies become periodic under the Renters' Rights Act

From 1 May 2026, all assured shorthold tenancies in England become periodic from day one. Fixed-term tenancies are abolished. Tenants can leave with two months' notice at any time. Landlords can only end a tenancy using Section 8 grounds.

The end of fixed-term tenancies

Under the current system, most tenancies start with a fixed term — typically six or twelve months. During the fixed term, neither party can end the tenancy early without mutual agreement (or specific break clauses). When the fixed term expires, the tenancy rolls into a statutory periodic tenancy or is renewed.

The Renters' Rights Act removes this structure entirely. From 1 May 2026:

• All new tenancies start as periodic from day one — there are no fixed terms
• All existing fixed-term tenancies convert to periodic tenancies on 1 May 2026
• Tenancy agreements that include fixed-term clauses will no longer be enforceable

How tenant notice works

Tenants can end a periodic tenancy by giving two months' written notice at any time. There is no minimum period before a tenant can give notice — they could technically move in and give notice in the first week, though they would still owe rent for the two months from the date of notice.

In practice, most tenants want stability and won't exercise this unnecessarily. But it does create a genuine risk of short tenancies, particularly in more transient rental markets.

How landlord notice works

Landlords cannot end a periodic tenancy without a Section 8 ground. There is no landlord equivalent of the tenant's two-month notice. You must have a specific legal reason, served in the prescribed form, with the correct notice period for that ground.

Notice periods for common Section 8 grounds:

Rent increases in a periodic tenancy world

With no fixed-term renewals, you can no longer negotiate rent increases when renewing a tenancy. The only legal route to increasing rent is a Section 13 notice:

• Must be given at least two months before the proposed increase date
• Can only be used once every 12 months
• Must be on the prescribed form (Form 4)
• Tenants can refer it to the First-tier Tribunal for assessment against market rent
• No rent review clauses in tenancy agreements — they're unenforceable under the new rules

Read our dedicated guide to Section 13 rent increases for the correct process and prescribed form.

What this means for your tenancy agreements

Your existing tenancy agreement templates will need updating. Fixed-term clauses, break clauses, and rent review provisions that rely on fixed terms are all redundant from 1 May 2026. Any new tenancy agreement signed after that date should reflect the periodic structure from the outset.

The government is expected to publish model periodic tenancy agreements before the Act comes into force. Keep an eye on GOV.UK and update your templates as soon as they're available.

4. The PRS Information Sheet — deadline 31 May 2026

The government must produce a Private Rented Sector Information Sheet explaining tenants' rights under the Renters' Rights Act. Landlords must give this document to all new tenants from 1 May 2026, and to all existing tenants by 31 May 2026. Failure to provide it may prevent you from serving possession notices.

What is the PRS Information Sheet?

The PRS Information Sheet is a government-produced document — similar in concept to the How to Rent guide currently required at the start of every tenancy. It will explain to tenants:

• Their rights under the Renters' Rights Act
• How periodic tenancies work
• How to challenge a rent increase
• The landlord's obligations under the new rules
• How to raise concerns or make complaints
• The PRS Database and Ombudsman and how to use them

The government has not yet published the final version of the Information Sheet — it is expected to be released in the weeks before 1 May 2026. This is similar to how the How to Rent guide is published and updated by the government; landlords are required to serve whatever version is current at the time of issue.

Who must receive it and when

You must be able to prove you've served it — email with read receipt, recorded post, or a signed acknowledgement from the tenant are all acceptable methods. Keep evidence on file.

What happens if you don't serve it?

Failure to provide the PRS Information Sheet is likely to affect your ability to serve possession notices — similar to the current position with the How to Rent guide and the prescribed information for deposit protection. Courts have consistently held that landlords who haven't complied with pre-action requirements cannot rely on possession notices.

This makes it a practical requirement for every landlord, not just a best-practice recommendation. Serve it, document it, and keep proof.

What to do now

At this point, the official document hasn't been published yet. What you can do now:

• Build a list of all your current tenants' email addresses (for delivery once the document is published)
• Set a reminder for 1 May 2026 to download the Information Sheet from GOV.UK and send it to all existing tenants
• Update your new tenancy checklist to include the PRS Information Sheet alongside the How to Rent guide and prescribed deposit information
• LandlordOS will alert you when the document is published and remind you of the 31 May 2026 deadline

5. The Private Rented Sector Database launches late 2026

The Private Rented Sector Database is a new national register of landlords and rental properties in England. All landlords must register themselves and every property they let. Without registration, you cannot serve possession notices or increase rent. The database is expected to launch in late 2026 (Phase 2 of the Renters' Rights Act implementation).

What the PRS Database is

The database is a public register — tenants will be able to look up whether a landlord and property are registered before entering a tenancy. Local authorities will use it to identify landlords who aren't meeting their obligations. It replaces various existing local registration schemes with one national system.

The objectives are:

• Transparency — prospective tenants can verify landlords before signing
• Compliance tracking — local authorities can see who has gas safety, EICR, and EPC certificates in place
• Enforcement — unregistered landlords face automatic loss of certain landlord powers
• Tax compliance — HMRC will have access to landlord registration data

What you'll need to register

The exact registration requirements are still being confirmed, but based on the legislation they are expected to include:

• Your identity and contact details
• Each rental property's address
• Compliance certificates for each property (Gas Safety, EICR, EPC)
• Any enforcement actions or civil penalties against you
• Whether each property has an HMO licence (if applicable)

Consequences of not registering

The consequences are severe and built into the legislation:

• You cannot serve a valid possession notice — any notice served while unregistered will be invalid
• You cannot increase rent via Section 13 while unregistered
• Financial penalties of up to £7,000 for a first offence and up to £40,000 for repeat offences
• Rent Repayment Orders — tenants can apply to reclaim up to 24 months' rent

The database is expected to launch in the second half of 2026. Registration fees are expected but the amounts have not yet been confirmed. Read our guide to PRS Database registration requirements as the detail becomes clearer.

What to do now

The database isn't open for registration yet, so there's no immediate action required. What you can do now is ensure your compliance records are in good shape — Gas Safety certificates, EICRs, and EPCs for every property — so that when registration opens, you're ready to complete it quickly.

Landlords with large portfolios should start auditing compliance certificates now. If a certificate has lapsed, you need to know about it before you register, not after.

Your 2026 action plan

Work through this checklist to ensure you're compliant with every 2026 change. The items are ordered by urgency.

By 30 April 2026

• Decide whether to serve any outstanding Section 21 notices before the 1 May deadline — this is your last chance
• Review all current tenancies — identify any where you may need possession in the next 12 months and plan which Section 8 ground applies
• If you're over the £50,000 property income threshold, confirm you have HMRC-recognised MTD software in place and your records migrated
• Update your tenancy agreement templates to remove fixed-term provisions (the government is expected to publish model periodic agreements before May)

By 31 May 2026

• Download the PRS Information Sheet from GOV.UK once published and send it to all existing tenants
• Keep documented proof of delivery — email confirmation, postal proof, or tenant signature
• Add the PRS Information Sheet to your new tenancy checklist alongside the How to Rent guide

From April 2026 onwards (MTD)

• Submit your first MTD quarterly update by 5 August 2026 (covering 6 April – 5 July 2026)
• Set calendar reminders for all four quarterly submission deadlines: 5 August, 5 November, 5 February, 5 May
• Keep digital records of all rent received and expenses paid — paper receipts alone are not compliant

Late 2026 (PRS Database)

• Audit Gas Safety certificates, EICRs, and EPCs for every property — flag anything expired or expiring within six months
• Register yourself and all properties on the PRS Database as soon as it opens — do not wait
• Confirm your contact details and property addresses are accurate — these will be public-facing

Ongoing from May 2026

• Use Section 8 grounds for all new possession situations — never attempt a Section 21 after 1 May 2026
• Use Section 13 notices for all rent increases — maximum once per 12 months, two months' notice minimum
• Document all tenant communications — under the new rules, a paper trail is your primary defence in possession proceedings
• Stay on top of Gas Safety, EICR, and EPC renewal dates — compliance certificates are now linked to your ability to use the PRS Database

What about EPC C in 2030? Plan ahead now

From 1 October 2030, all rental properties in England must have an Energy Performance Certificate rating of C or above. There is a £10,000 cost cap per property. Given the lead time and cost involved in retrofit work, planning should start now — not in 2029.

What the EPC C requirement means

Currently, the minimum EPC requirement for rental properties is Band E. From 1 October 2030, this rises to Band C — a significant jump that will require retrofit work on many older properties.

The government has set a £10,000 cost cap. If improving a property to EPC C would cost more than £10,000, you can register a cost cap exemption and the property is exempt for five years. But this exemption must be registered — you can't simply not comply and hope nobody notices.

What typically moves a property from D to C

The most common improvements and their approximate cost impact:

Properties currently at Band D are typically close to the Band C boundary and may reach it with relatively modest improvements. Band E and F properties require more significant work.

Government grants and schemes

Several government schemes can reduce the cost of EPC improvements:

• Boiler Upgrade Scheme: Up to £7,500 towards an air source heat pump or biomass boiler
• Great British Insulation Scheme: Free or subsidised insulation for eligible properties
• ECO4 scheme: Funding for energy improvements in properties with low-income or fuel-poor tenants

These schemes have eligibility criteria and annual funding limits. Applying early — well before 2030 — gives you the best chance of accessing funding.

Why start planning now

The EPC C deadline is four years away, but there are good reasons to act early:

• Demand for energy retrofit contractors will increase sharply as 2030 approaches — booking early means lower costs and greater availability
• You can plan improvements around natural tenancy changes, minimising disruption
• Some improvements (such as cavity wall insulation or loft insulation) can be done with tenants in situ; others (like solid wall insulation or heat pump installation) require vacant possession
• EPC assessors are also becoming busier — you need an up-to-date EPC to know where you actually stand, which requires a fresh assessment

Start by commissioning an updated EPC on any property where the certificate is over five years old. An assessor can also provide advice on the most cost-effective improvements to reach Band C.