Is 2026 the year landlords decide to stay or sell?

New tenancy rules, rising costs, and the Renters Act

As we enter 2026, many landlords are asking themselves a difficult question: is this the year to sell up, or is it time to ride out yet another wave of legislative change? 

With the Renters Reform Act due to come into force on 1 May, uncertainty is running high across the private rental sector.

Recently, the government confirmed the updated wording for new tenancy agreements, making it clear that landlords who continue to use outdated Assured Shorthold Tenancies (ASTs) could face penalties of up to £4,000, issued by local authorities. For compliant landlords who have always tried to do things properly, this feels like another looming risk in an already challenging environment.

For many, rental property is not simply an investment—it is their income, their future pension, and a way to remain financially independent in retirement. It represents entrepreneurship, security, and a desire not to rely on the state later in life. That is precisely why the scale of potential fines and penalties under the new Act is so concerning. A simple administrative mistake could wipe out several years’ worth of hard-earned profit.

While the intention behind the Renters Act is to protect tenants and tackle rogue landlords, there is widespread frustration that those who have historically ignored regulations are unlikely to change their behaviour. Meanwhile, responsible landlords shoulder the cost, stress, and risk of compliance.

Adding further pressure are upcoming changes to energy efficiency requirements. With EPC ratings set to rise to a minimum of ‘C’ between 2028 and 2030, many landlords will need to invest significant sums into upgrading their properties—often at a time when profits are already being squeezed. Combined with the additional 2% tax on rental income, particularly painful for landlords who are not operating through limited companies and still carry mortgages, the financial equation is becoming increasingly tight.

Hindsight, of course, is a wonderful thing. The buy-to-let landscape has changed dramatically over the past decade. There was a time when building a portfolio with mortgages made clear financial sense, as interest costs were tax deductible. Today, purchasing through a limited company is often the only viable route—but even that feels uncertain when tax rules and legislation continue to shift with each political cycle.

One thing remains constant: anxiety often stems from a lack of knowledge. The antidote is education, preparation, and professional support. Landlords should ensure they are fully informed, working with reputable letting agents who truly understand the current legal landscape. Robust tenant vetting, strict due diligence, and proactive property management have never been more important.

For those currently dealing with problematic tenants or serious rent arrears, it is vital to seek legal advice as soon as possible. While Section 21 notices remain in place for now, time is of the essence as reforms continue to roll out.

The Value of Expert Support

A good letting agent can make the difference between a stress-free rental experience and a costly headache. Professional agents handle marketing, tenant referencing, compliance, deposit protection, safety checks, rent collection, and maintenance—dramatically reducing the risk of fines, disputes, and void periods. In a competitive and regulated market, expert management provides peace of mind and protects long-term returns.

Move On was founded by Sharon Canning in 2006, bringing with her 20 years of industry experience. Nearly two decades later, that expertise now totals 40 years. Renowned locally as true lettings specialists, Move On has built its reputation on knowledge, professionalism, and landlord support.

For a free, friendly chat, contact Sharon or her team, or email sharon@moveon.biz.

Because sometimes, the smartest move isn’t selling. It’s knowing when to Move On—with the right support behind you.

 

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