Landlords Corner - Preparing For Success In 2026
As we close out 2025, it is becoming increasingly clear that the private rented sector is entering a period of adjustment rather than retreat. For landlords, particularly those operating in and around London, the coming years will be shaped less by demand – which remains strong – and more by regulation and compliance costs.
Recent research from Carter Jonas paints a picture of cautious confidence. Most landlords are standing still for now, with around 80% expecting to keep their portfolios unchanged in the near term. That said, a notable minority are still looking to grow. Around 14% plan to purchase additional property, and interestingly, the largest group within this category are “accidental landlords” – owners who did not necessarily plan to build a portfolio but now see value in staying invested as tenants rent for longer and demand remains resilient.
Caution is understandable but you can make progress
This caution is understandable. When landlords were asked what is holding them back, regulatory complexity topped the list, followed closely by concerns around financial viability. A smaller but significant proportion are considering selling altogether. The message here is not that landlords are losing interest in the sector, but that many are weighing risk far more carefully than they did in the past.
What is equally telling is what landlords say would actually make a difference. Reductions in Capital Gains Tax, Stamp Duty, and tax relief on essential maintenance all ranked highly as incentives to invest further. By contrast, easing proposed energy efficiency rules made little difference to most respondents’ buying decisions. That suggests landlords are not opposed to higher standards in principle – they simply want rules that are clear, proportionate and workable.
We keep you grounded in reality
This is where energy efficiency becomes a pressing concern for the years ahead. Separate research from the National Residential Landlords Association highlights a growing gap between government ambition and financial reality. Under current proposals, landlords could be expected to spend up to £15,000 per property to meet future energy performance standards. However, independent analysis suggests that, on average, landlords reach the limit of affordability at around half that figure.
This challenge is sharpened by the fact that funding for energy efficiency schemes was reduced in the recent Budget, and no tailored support for the private rented sector was announced. Many landlords are surprised to learn that the average rental income declared to HMRC is under £20,000 a year. This is not the profile of an investor with unlimited reserves, and it raises serious questions about how upgrades will be funded in practice.
London landlords face particular challenges
For landlords in London, where older housing stock is common, the risk is not just cost but timing and strategy. Leaving energy improvements too late could restrict letting options or reduce property value, yet acting too early without clarity on final rules could mean spending money twice. The NRLA has called for energy efficiency works to be tax deductible and for spending caps to reflect property values, but for now, uncertainty remains.
Alongside this, wider regulatory changes continue to move closer. Proposals within the Renters’ Rights framework, including the abolition of Section 21 and new tenant rights, are being watched closely. Interestingly, many landlords support the idea of a Private Sector Ombudsman, seeing it as a way to reduce disputes and improve standards, provided it operates fairly. Again, the appetite is there for reform – but only if it reduces friction rather than adds to it.
Preparation is always crucial
The common thread running through all of this is preparation. The landlords who will be best placed over the next few years are those who understand what is coming, know where their portfolios are exposed, and have a clear plan for compliance and performance. That planning is rarely just about legislation; it also involves rent positioning, tenant demand, property condition and long-term yield.
For many landlords, especially those with one or two properties, these issues are not always obvious until they become urgent. Understanding where the pressure points are likely to emerge – and what options are available before deadlines loom – can make a substantial difference. This is where informed, local advice becomes invaluable, particularly as the regulatory landscape continues to evolve.
Staying ahead in the Leytonstone rental market
If you are looking for guidance on the Leytonstone rental market, or you just want a helping hand in complying with rental market regulations, we are always here to assist you.
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