* Non Housing Act and Company tenancies are excluded from the Act
The Renters’ Rights Act introduces some of the most significant changes to the private rented sector in a generation. From how rent is advertised, to how much can be taken upfront, many long standing practices will no longer be permitted.
Below we highlight the key changes landlords need to be aware of, and what they mean in practice.
From 1 May 2026, all rental properties must be advertised with one clear, fixed asking rent.
Rent ranges are no longer allowed
Phrases such as “offers over” or “best and final offers” must not be used
The advertised rent must remain fixed throughout the marketing period
These rules apply to all written advertising, including portals, websites, social media, emails and text messages.
Landlords and agents must not ask for, encourage, or accept offers above the advertised rent.
Importantly, this applies even if a tenant voluntarily offers more. Accepting a higher figure would still be a breach of the legislation, therefore it is important to market your property at the correct current market rent at the time of launch.
Local authorities will enforce this, with civil penalties of up to £7,000 for a first offence, and higher penalties for repeat breaches.
Yes. The legislation does not prevent landlords from accepting a rent below the advertised figure.
The restriction works one way only: you cannot accept more than the rent you have advertised.
The new tenancy framework moves all assured tenancies onto a periodic basis, with rent periods that must not exceed one month.
In practical terms:
Rent must be structured monthly
Landlords can only require one month’s rent at a time
This is important to note if the Tenant pays the rent directly to you.
While “rent in advance” is effectively banned, landlords can still lawfully take move in monies if they are structured correctly:
Holding deposit – capped at one week’s rent
Tenancy deposit – up to 5 weeks’ rent (or 6 weeks where annual rent exceeds £50,000)
First month’s rent – payable only after the tenancy agreement has been signed
You will no longer be able to request multiple months’ rent upfront for a monthly paid tenancy.
The Renters’ Rights Act introduces a stronger enforcement regime. Breaches relating to:
Rental bidding
Incorrect rent advertising
Prohibited rent payments
can result in financial penalties and, in some cases, tenant led claims for rent repayment.
Non compliance may also affect a landlord’s ability to successfully regain possession in the future.
Tenants may request alternative rent payment dates, however at Carter Jonas, we have decided that we will no longer accommodate such requests, and the rent will be due on the payment date set out in the tenancy agreement.
From May 2026, all existing assured shorthold tenancies will automatically become periodic assured tenancies, typically running month to month. This now means that your Tenant will move onto monthly rent payments once their quarterly/six monthly or annual payment period ends. This is to reduce ambiguity for notice, rent reviews and importantly, to mitigate future possession risk.
Some tenants may choose to pay more than the contractual rent. These payments are generally treated as voluntary, not as rent due and can not be agreed as part of the tenancy agreement nor be relied upon when assessing affordability or compliance. We would strongly advise that you do not accept a voluntary overpayment as if the Tenant subsequently serves notice, you would be required to return any excess rental payments.
Any applicants who do not pass the referencing criteria and are not able to offer a UK Guarantor may look to take out a professional guarantor product at their own cost. This insurance-based scheme acts as a guarantor if the Tenant defaults on their rent. As the Landlord you should understand the scope and limitations of any guarantee offered before agreeing to accept it.
Making Tax Digital for Income Tax Self Assessment (MTD for ITSA) is one of the biggest changes to the UK tax system in decades. From 6 April 2026, many landlords will be required to change how they keep records and report rental income to HMRC.
While this is a tax change rather than a lettings reform, it will affect a significant number of private landlords.
Making Tax Digital is HMRC’s move away from annual, paper based Self Assessment towards digital recordkeeping and more regular reporting.
Instead of submitting one tax return at the end of the year, landlords who fall within scope will be required to:
Keep digital records of income and allowable expenses
Use HMRC compatible software to maintain those records
Submit quarterly updates to HMRC summarizing income and expenses
Complete a final declaration after the tax year ends
The intention is to improve accuracy and give taxpayers greater visibility of their tax position throughout the year.
From 6 April 2026, MTD for Income Tax will apply if all the following apply:
You are an individual registered for Self Assessment
You receive income from property letting and/or self-employment
Your total qualifying income from property and self-employment exceeds £50,000 per year (before expenses)
HMRC has confirmed that the threshold will reduce in later years:
£30,000 from April 2027
£20,000 from April 2028 (subject to legislation)
Landlords operating through limited companies are not affected by these Income Tax rules, as companies pay Corporation Tax instead.
MTD changes how income is reported, not how much tax is paid.
Key points to be aware of:
Quarterly submissions are updates, not tax bills
You will not be paying tax quarterly
Final tax calculations and payments will still be due by 31 January as usual
HMRC will receive more frequent information, reducing reliance on year-end estimates
Quarterly updates are cumulative summaries generated by your software, rather than a full transaction-by-transaction breakdown.
Landlords within scope must use HMRC compatible software to:
Create and store digital records
Submit quarterly updates
File the final declaration
HMRC will not provide its own software. There are both paid and free options available, depending on the complexity of your affairs, and some landlords may continue using spreadsheets alongside approved “bridging” software.
MTD represents a shift towards ongoing compliance rather than annual reporting. For landlords with multiple properties, varied expenses or less structured recordkeeping, this may require changes to existing processes.
Preparing early allows time to:
Assess whether you fall within scope
Review how rental income and expenses are currently tracked
Speak to an accountant or tax adviser about software and support
Avoid disruption when MTD becomes mandatory
Making Tax Digital is designed to modernize the tax system, but it does place new administrative responsibilities on landlords. We will continue to provide you with an annual Income and Expenditure report if we collect the rent on your behalf. This report forms part of our rent collected and managed service and we can forward a copy to your Accountant on request.
The local team at Carter Jonas is here to support you. If you have questions about how Making Tax Digital or the Renters’ Rights Act changes affect your property or portfolio, please get in touch with our team.
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