Newsletter for Property Landlords – October 2026

Welcome to our monthly newsletter for property landlords. We hope you find this informative and please contact us to discuss any matters further.

HMRC Figures Reveal the Shape of the UK Landlord Market
HMRC’s latest Property rental income statistics: 2026 provide an interesting snapshot of the UK’s private landlord sector and highlight just how significant rental property remains as a source of income.
According to the report, 2.88 million unincorporated landlords declared rental income on Self Assessment tax returns for the 2024-25 tax year. Together, they reported almost £59 billion of property income, with individual landlords accounting for the vast majority of both landlords and rental income.
One notable finding is the concentration of property income in London. Although only 17% of landlords were based in the capital, they generated 28% of all reported rental income. This underlines the continued importance of London within the UK rental market, despite increased investment activity in regional property markets in recent years.
The statistics also show that 88% of landlords claimed deductible expenses against their rental income. This highlights the importance of maintaining accurate records and ensuring all allowable expenses are identified when preparing tax returns. Mortgage interest restrictions mean that landlords need to be particularly careful in understanding which costs qualify for relief and how that relief is given.
Overall rental income has grown steadily over the past five years, reflecting a combination of rising rents and continued demand for rental accommodation. However, HMRC’s figures cover only landlords who report rental income through Self Assessment. Companies holding buy-to-let properties are not included in these statistics.
What does this mean for landlords?
As rental income and compliance obligations continue to grow, good record-keeping and proactive tax planning are more important than ever. Landlords should review their expense claims, consider whether their ownership structure remains appropriate, and ensure they are prepared for the continuing rollout of Making Tax Digital.
To view HMRC’s report, see here
New Landlord Registration and Rent Dispute Changes Announced
The government has announced the next stage of its Renters’ Rights Act reforms, introducing measures designed to give tenants greater confidence in the private rented sector while helping councils tackle rogue landlords more effectively.
A key change is the introduction of a new national “Register your rental property” service. From December 2026, the scheme will be rolled out across England on a regional basis, with all landlords eventually required to register their rental properties. Councils will be able to access the information to identify non-compliant landlords more quickly and target enforcement activity where needed.
The register will also allow tenants to check whether a landlord has signed up, helping renters make more informed decisions before entering into a tenancy. The government says this should create a fairer market by allowing responsible landlords to demonstrate their compliance while preventing rogue operators from gaining an unfair advantage.
The reforms will also change how rent increases are challenged. Responsibility for initial rent determinations will move from the tribunal system to HM Revenue and Customs’ Valuation Office. The government believes this will provide a faster and more efficient process for resolving disputes over proposed rent increases.
For landlords, the message is clear: compliance requirements in the private rented sector are continuing to increase. Those who maintain good records, follow the rules and keep up to date with regulatory changes should be well placed to adapt to the new regime as it is introduced.
To read more, see here.
Overnight Visitor Levy confirmed for England
The government has confirmed plans for an Overnight Visitor Levy for England, giving mayors and other local leaders the power to introduce a charge on overnight stays.
This follows a consultation that ran between November 2025 and February 2026 and received over 1,200 responses.
Mayors and leaders of Foundation Strategic Authorities (FSAs) will decide whether to introduce a levy in their area, but only following local consultation and advance notice to businesses.
The levy will operate within a standardised framework, established through legislation and guidance, confirming the rate type, application and any exemptions.
This article sets out how the government expect the levy to operate, although draft legislation is not yet available.
Who can introduce the levy?
It is expected that all mayors and FSAs in England will have the power to introduce the levy in their area provided they:
• Consult locally before implementation.
• Give businesses advance notice before a levy’s introduction and any subsequent changes.
Levy rate
The levy will be a percentage of the accommodation cost, rather than a flat fee.
Strategic authorities are expected to set their own rates but are unlikely to be allowed to vary by season, accommodation type, or constituent authority.
The government does not currently intend to introduce a national cap on levy rates.
Liability and collection
Accommodation providers will be liable for the levy but may choose to pass the cost on to visitors.
Providers will also be responsible for calculating and declaring their levy liabilities through a self-assessment process.
The strategic authorities will be responsible for the administration and collection of the levy and decide how revenues are spent.
Exemptions
The levy will apply to all short-term visitor accommodation, subject to national and discretionary local exemptions.
• It is expected that non-commercial accommodation, temporary accommodation, charity accommodation for shelter or refuge, and registered gypsy and traveller sites will be exempt nationally.
• Local leaders will have the flexibility to offer further local exemptions, such as for campsites.
• Exemptions are expected to be based on accommodation type, rather than visitor characteristics.
• A de minimis threshold will likely be introduced to exempt occasional informal providers.
Next steps
The government has said that it will continue to engage with businesses and accommodation providers to finalise the technical design.
Legislation is likely to be laid during the current Parliamentary session and, subject to approval, the government expects local leaders to be able to set out how revenues will be invested by March 2028.
The government’s response provides a broad framework for the levy. Accommodation providers and advisors in affected areas may wish to monitor further developments as draft legislation emerges.
A visitor levy is already in place for Scotland and Wales.
Purplebricks faces HMRC Winding-Up Petition
Online estate agency Purplebricks has been served with a winding-up petition by HM Revenue & Customs (HMRC), prompting renewed scrutiny of the company’s financial position. The petition was filed on 22 September 2026 against Purplebricks Property Limited, the trading company behind the well-known estate agency.
However, Purplebricks has insisted that the issue arose from an administrative error rather than an inability to pay its tax liabilities. The company states that it was already in discussions with HMRC before the petition was filed and that the matter has now been resolved, with the petition being withdrawn. Its accountants, BK Plus, have also described the dispute as an administration error.
The news comes as questions have been raised over the company’s overdue accounts for the year ended March 2025. Purplebricks says the delay resulted from the appointment of a new chief financial officer and that the accounts will be filed shortly.
While the company says the tax dispute has been resolved, the episode highlights the importance of maintaining robust financial and compliance processes, even for some of the property industry’s most recognisable brands.