Landlords in England face two major changes over the next 18 months. First, compulsory registration of every privately rented home on the new Private Rented Sector (PRS) Database begins in December 2026, rolled out region by region. Second, the tax position of individual landlords changes from April 2027, when property income will be taxed at higher rates than other income. Add Making Tax Digital for Income Tax, already live for the largest landlords since April 2026, and the compliance and cost picture for buy-to-let looks very different from even two years ago. This guide sets out what is changing, when, and which parts of England are affected first.
Part 1: Compulsory landlord and property registration
The Renters’ Rights Act 2025 creates a national PRS Database. The government’s “Register your rental property” service opens on 15 December 2026. Every private landlord in England will need to register themselves and each rented property. As announced, the fee is £65 per property per year, pro-rated during the rollout.
What you will need to provide
Registration requires landlord details and property information including the address, ownership and dwelling type, number of bedrooms, occupancy details and rent, together with gas safety, electrical safety (EICR) and Energy Performance Certificate data. HMO licensing details must also be disclosed where relevant.
Consequences of not registering
- Civil penalties of up to £7,000 for failing to register, rising to up to £40,000 for repeated or continued breaches, with criminal liability possible in serious cases.
- Restrictions on possession. Landlords who are not registered face restrictions on gaining possession of their property.
- Marketing ban. A property cannot be marketed for rent unless both the landlord and the dwelling have active database entries, and adverts will need to carry the database identifiers.
Which parts of England are affected, and when
Registration is being phased in by region, with a three-month window to register in each:
| Region | Opens | Register by |
|---|---|---|
| West Midlands | 15 December 2026 | 14 March 2027 |
| East of England | 15 January 2027 | 14 April 2027 |
| East Midlands | 15 February 2027 | 14 May 2027 |
| South East | 15 March 2027 | 14 June 2027 |
| Yorkshire and the Humber | 15 April 2027 | 14 July 2027 |
| North West | 15 May 2027 | 14 August 2027 |
| North East | 15 June 2027 | 14 September 2027 |
| London | 15 July 2027 | 14 October 2027 |
| South West | 15 August 2027 | 14 November 2027 |
West Midlands landlords are first. That includes Birmingham, Wolverhampton, Coventry, Walsall and Willenhall, Dudley, Sandwell and Solihull, as well as Staffordshire, Shropshire, Warwickshire, Worcestershire and Herefordshire. If you let property in this region you have until 14 March 2027. Landlords in the area can speak to our Willenhall office.
East of England follows in January 2027, covering Essex, Hertfordshire, Bedfordshire, Cambridgeshire, Norfolk and Suffolk. London – including Barking and Dagenham, Havering and Wandsworth – opens in July 2027, with registration due by 14 October 2027. Landlords in east and south-west London can contact our Dagenham or Putney offices. Landlords with properties in more than one region should register each property in line with its own region’s timetable. The database applies to England only: Wales operates Rent Smart Wales and Scotland the Scottish Landlord Register. Local selective and HMO licensing schemes continue to apply alongside the national database.
The wider effect of the Act on lending – including the end of fixed-term assured shorthold tenancies and section 21 – is covered in our article on the Renters’ Rights Act and buy-to-let lending.
Part 2: Buy-to-let tax changes landlords need to know
Higher income tax rates on property income from April 2027
Following the Autumn Budget 2025, from 6 April 2027 property income of individuals in England, Wales and Northern Ireland will be taxed at separate property rates:
| Band | Current rate | Property income rate from April 2027 |
|---|---|---|
| Basic | 20% | 22% |
| Higher | 40% | 42% |
| Additional | 45% | 47% |
The government has said it will work with the Scottish and Welsh governments to let them set their own property income rates. In addition, the personal allowance will be set against employment, trading and pension income before property income, so many landlords who also have a salary will find more of their rent taxed at the new rates.
Section 24 and finance cost relief
Individual landlords still cannot deduct mortgage interest from rental income. They instead receive a tax reduction based on their finance costs. That reduction is currently given at 20%; from April 2027 it is expected to be given at the property basic rate of 22%. Higher and additional-rate landlords will still pay more tax on their rent than they recover on their interest. Our guide to limited company buy-to-let and Section 24 compares personal and company ownership.
Making Tax Digital for Income Tax
Since 6 April 2026, landlords and sole traders with combined gross property and self-employment income above £50,000 must keep digital records and send quarterly updates to HMRC using compatible software. The threshold falls to £30,000 from April 2027 and £20,000 from April 2028. Note that the test is gross income (rent before expenses), not profit. Quarterly updates are due by 7 August, 7 November, 7 February and 7 May, and a points-based penalty regime applies to missed submissions.
Other taxes to keep in view
- Stamp Duty Land Tax: buy-to-let and additional property purchases in England and Northern Ireland pay a 5% surcharge on top of the standard SDLT bands.
- Capital Gains Tax: gains on residential property are currently taxed at 18% (basic rate) or 24% (higher and additional rate), and UK residents must report and pay within 60 days of completion.
- Limited companies: company landlords pay corporation tax (19% to 25% depending on profits) and continue to deduct finance costs in full, but extracting profits as dividends is taxed separately.
What this means for your mortgage strategy
Higher tax on rent reduces net yield, and some lenders take personal tax position into account in buy-to-let affordability. Our explanation of buy-to-let interest coverage ratios shows how rent supports borrowing, and our article on EPC C and retrofit finance covers another rising compliance cost. Landlords reviewing structure, refinancing or incorporation ahead of April 2027 should speak to both a broker and a qualified tax adviser. See our buy-to-let mortgage service and the Buy-to-Let & Portfolio Landlord Hub.
Get your portfolio ready
Contact Giles Finance on 020 8088 2211 to review your buy-to-let borrowing before the new registration and tax rules take effect.
Dates, fees and penalties are as announced at the time of writing and may change; check the latest GOV.UK guidance. This article is general information and not tax or legal advice; tax treatment depends on individual circumstances and you should take advice from a qualified tax adviser or accountant. Most buy-to-let mortgages are not regulated by the Financial Conduct Authority. Your property may be repossessed if you do not keep up repayments on your mortgage.
Giles Finance is a trading style of Giles Finance & Consultancy Services, authorised and regulated by the Financial Conduct Authority (FRN 726857).