Updates for May 2026 including MTD fully live, clarification around loans to company shareholders, the Marshmallow VAT tribunal, Capital Allowances, changed to CIS and classification on mixed use for SDLT.
Property Newsletter May 2026
16 May 2026
Accounting & Compliance, Property Investors & Developers
Making Tax Digital becomes mandatory
Making Tax Digital (MTD) for Income Tax is now live – many self-employed individuals and landlords with turnover above £50,000 in 2024/25 were mandated into the regime from 6 April 2026.
Under MTD for Income Tax, individuals will keep digital records and send updates to HMRC every quarter using compatible software.
This will require in-year record keeping, rather than everything being dealt with after the year ends.
For those already mandated, the deadline for the first quarterly update in 2026/27 is 7 August 2026.
While MTD is currently optional for many taxpayers, the next cohort of individuals will be mandated soon.
If your qualifying income (turnover before expenses are deducted) from self‑employment and/or property is over £30,000 in the 2025/26 tax year, you will be required to follow MTD for Income Tax from 6 April 2027.
This change does not mean paying tax four times a year, but it does mean reporting more regularly.
With time to prepare, choosing the right software and understanding what’s required can make the transition smoother and help you stay in control of your tax affairs.
Please talk to us if you think you’re likely to be mandated from April 2027 – we would be happy to help!
EPC reform delayed – but strategic uncertainty grows
Energy efficiency has remained firmly in the spotlight this month following confirmation that the government has delayed major reforms to domestic Energy Performance Certificates until the second half of 2027.
While the delay offers short‑term breathing space, it has also created uncertainty for landlords planning investment.
The new EPC framework will underpin proposed rules requiring most rental properties in England and Wales to reach an EPC rating of C by 2030.
Industry figures have warned that landlords may postpone improvement works until clearer guidance emerges, potentially compressing timelines later.
For now, the consensus advice is to assess existing EPCs carefully, prioritise cost‑effective upgrades, and retain evidence of expenditure in case exemptions are needed.
Renters’ Rights Act: key actions before 1 May 2026
The Renters’ Rights Act comes into force on 1 May 2026 and represents the biggest change to renting in England for a generation.
All landlords must be ready, as the new rules apply to both new and existing tenancies from day one.
The most important change is the abolition of Section 21, meaning landlords will no longer be able to end a tenancy without a valid statutory reason.
All assured shorthold tenancies will automatically become assured periodic tenancies, removing fixed terms and increasing tenant security.
Before the deadline, landlords must review eviction processes, ensure they understand the new grounds for possession, and update internal procedures accordingly.
The official Renters’ Rights information document must also be provided to tenants by 31 May 2026, or risk fines.
Now is the time to audit tenancy agreements, check compliance records, and seek professional advice to ensure a smooth transition under the new legal framework.
Rent Trends Diverge Sharply Across the UK
The past month has highlighted widening regional differences in rental performance across the UK.
New data published by Propertymark shows that while some areas are still seeing rent growth, others are now stabilising or experiencing small declines.
Scotland recorded the strongest month‑on‑month growth, with average agreed rents rising almost 5% in March.
Northern Ireland followed with nearly 4% growth, while Wales showed only marginal movement.
In contrast, several English regions – including London, the North East and the South West – saw rents fall on a monthly basis, reflecting affordability pressures and easing demand in some local markets.
Industry bodies have described the market as “recalibrating rather than crashing”, with supply improving modestly and enquiry levels easing.
For landlords, this reinforces the importance of understanding local market conditions rather than relying on national headlines when setting rents or reviewing yields.
Northern Ireland: Landlord Registration Under Review
In Northern Ireland, a significant consultation launched in March could lead to tougher landlord registration requirements.
The proposals would require landlords to provide additional property standards data and allow greater information‑sharing between councils and enforcement bodies.
The consultation, which closed on 27 April 2026, reflects a UK‑wide trend toward stronger oversight of the private rented sector, though Northern Ireland continues to follow its own regulatory path.
Officials have stressed that the aim is to raise standards and target non‑compliant landlords, rather than burden those who already meet their obligations.
Landlords with properties in Northern Ireland should review the proposals carefully.
Scotland: Rental Market Stabilises After Policy Shifts
In Scotland, the last month has brought growing evidence that the private rented sector is stabilising following the removal of temporary rent controls.
Newly released figures from DJ Alexander Ltd show average rents increased by 2.4% annually – broadly in line with inflation – marking a return to historic norms.
Commentators note that the lifting of rent caps in March 2025 has allowed supply and demand to rebalance, particularly in urban centres.
While some regions such as West Lothian and Greater Glasgow saw stronger growth, others recorded flat or slightly falling rents.
For landlords, this suggests a more predictable environment is returning, though regional variation remains significant.
The content in this blog is correct as at 16th May 2026 See terms and conditions.
