Rental market predictions 2026 – what landlords need to know

With the biggest changes to tenancy laws in a generation starting from May, 2026 is set to be a significant year for landlords and the rental market.

Not only will landlords need to adapt to a completely new tenancy system, they’ll also need to change the way they approach rent rises and evictions. 

But the Renters’ Rights Act isn’t the only thing to be aware of in 2026 as energy efficiency changes edge closer and an overhaul of the tax return system gets underway.

1. Renters’ Rights Act – landlords will need to be proactive

In October 2025, the Renters’ Rights Act became law, well over a year after it was first announced by the government. Not long after, a commencement date of 1 May 2026 was set. 

With less than six months to prepare for the biggest changes to tenancy law in a generation, many landlords will be worrying about what they need to do to comply. 

It’s unsurprising that our survey of over 1,000 landlords in August 2025 pinpointed the expected impact of the Renters’ Rights Act as the single greatest challenge for landlords. 

One way landlords can minimise the impact of such drastic changes is to be proactive. This could include redrafting tenancy agreements to meet the new periodic model or exploring things like pet-proofing.

Ahead of 1 May 2026, there are also a several key dates to be aware of, such as:

• January 2026 – publication of key regulations expected 
• March 2026 – expected publication of information sheet that landlords need to provide to tenants before 31 May 
• 30 April 2026 – last day a Section 21 notice can be served

2. Landlords need details on new EPC rules

While all eyes have been on the Renters’ Rights Act, the proposed deadlines for new energy efficiency rules have been moving closer.

To recap, the government has proposed that the minimum Energy Performance Certificate (EPC) rating for rental properties will increase to C by:

• 2028 for new tenancies
• 2030 for existing tenancies 

With potentially just two years to prepare, landlords are calling on the government to publish the results of its consultation (which closed in May 2025).

Key details still need to be ironed out, such as a spending cap, exemptions, and how EPC ratings will be measured under a new system.

On top of this, Simply Business research found that 55 per cent of landlords think they’ll need to invest in improvements to increase their EPC rating. Of those, almost a third (29 per cent) anticipate spending more than £5,000.

3. Making Tax Digital – not long left to prepare

The tax return system is set to change significantly in 2026. From 6 April, Making Tax Digital (MTD) for income tax is being rolled out for landlords who have a combined annual income of £50,000 or more.

Under Making Tax Digital, landlords will be required to:

• use government-approved tax software
• provide quarterly tax updates by set dates
• submit a ‘final declaration’ by 31 January each year

Although there’s not long to go until MTD is introduced, 68 per cent of landlords said they don’t feel prepared as recently as August 2025.

Ahead of the April start date, if they haven’t already, landlords will need to sign up for Making Tax Digital, find software that works for them, and get to grips with a new quarterly reporting system.

4. Rental supply and demand returning to ‘normality’ 

Following a frantic few years during and after the Covid-19 pandemic, rental demand and supply took a step closer to normality in 2025.

Data from Zoopla suggested that demand had fallen by 20 per cent, while the supply of rental homes increased by 15 per cent. As a result, rent rises were more moderate (growing by around two per cent).

Zoopla has predicted more of the same for 2026, forecasting rental growth of 2.6 per cent. 

However, there remain factors that could push up demand, reduce supply, and subsequently increase average prices:

the barrier to buying a home remains high due to average house price growth and costs such as stamp duty

almost two in five landlords (39 per cent) said the Renters’ Rights Act may force them to leave the rental market

5. New enforcement powers – why landlords need to be aware

One of the key measures of the Renters’ Rights Act is to give local authorities new investigatory powers to enforce housing standards.

These changes will be introduced from 27 December 2025, more than four months before the Renters’ Rights Act’s official start date of 1 May 2026.

The new rules will make it easier for councils to:

• inspect properties
• demand documents 
• access third-party data

It’s important to note that councils will be able to look back 12 months and enforcement penalties are expected to increase.

With this in mind, it will be more important for landlords to make sure their documentation (such as right to rent check records) is up to date and their properties meet minimum standards.

More guides for landlords

• Section 13 rent increase: a guide for landlords
• Letting agent fees for landlords – a simple guide
• Best buy-to-let areas in the UK
• Tax on rental income – complete guide to landlord tax