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A Landlord's Guide to UK Lettings (2026)

Guides 9 June 2026 7 min read

By Laura at Domovita

Renting out a UK property carries real legal weight, and the rules changed materially on 1 May 2026 when the Renters' Rights Act 2025 came into force. This guide is the high-level roadmap; the linked compliance rundown and the detailed guides drill into each item. Always check the current gov.uk guidance before a new tenancy - the law in this area is moving quickly.

Last reviewed: 9 June 2026. England-focused; some rules differ in Scotland, Wales and Northern Ireland.

1. Buy-to-let financing

You typically need a buy-to-let mortgage rather than a residential one. Lenders' criteria vary, but commonly include:

  • A deposit of around 25% or more (sometimes 40% for the best rates)
  • Rental income that covers roughly 125-145% of the monthly mortgage interest (the lender's "stress test")
  • A minimum personal income (often £25k+)
  • Higher interest rates than equivalent residential mortgages

These are market norms set by individual lenders, not legal requirements - check current terms with a broker or lender.

2. Stamp Duty on a buy-to-let

Buying an additional residential property (which a buy-to-let usually is) currently carries a 5% higher-rate surcharge on top of standard Stamp Duty Land Tax in England and Northern Ireland - see the rates on gov.uk. Scotland (Additional Dwelling Supplement under LBTT) and Wales (higher rates of Land Transaction Tax) have their own separate surcharges. Domovita's SDLT calculator applies the England/NI surcharge.

3. Choose your management style

  • Self-manage - you advertise, vet, sign tenants and handle repairs. Maximum profit, maximum hands-on work.
  • Tenant-find only - an agent finds and vets the tenant; you manage from then on. Often around one month's rent or 8-10% up front.
  • Full management - an agent handles everything. Often 10-15% of the monthly rent, ongoing.

Many landlords list themselves and bring in a local agent only if and when it suits them. Either path works on Domovita - the choice is yours.

4. Legal obligations (the big ones)

Getting these wrong can expose you to fines, rent-repayment orders, and - because Section 21 "no-fault" evictions have been abolished - difficulty regaining possession. See the compliance rundown for the full list and the deadline for each, and always confirm the current position on gov.uk.

  • EPC rating of E or better to let (Minimum Energy Efficiency Standard). The minimum is confirmed to rise to EPC C by 1 October 2030, so factor improvement work in early.
  • Gas Safety Certificate (CP12) every 12 months, given to tenants before move-in and at each renewal.
  • EICR (Electrical Installation Condition Report) at least every 5 years.
  • Smoke alarm on every storey, and a carbon monoxide alarm in every room with a fixed combustion appliance (for example a wood burner or gas boiler - gas cookers are excluded).
  • Right to Rent check for every adult tenant in England before the tenancy starts.
  • Deposit protection within 30 days of receipt, in one of the three government-backed schemes (TDS, DPS or MyDeposits). The deposit is capped at 5 weeks' rent (6 weeks if the annual rent is £50,000 or more).
  • Prescribed Information served to the tenant within 30 days, naming the scheme used.
  • Renters' Rights Act Information Sheet - this replaces the withdrawn "How to Rent" guide. Landlords with existing tenancies must serve the government Information Sheet by 31 May 2026 (a civil penalty of up to £7,000 applies for failing to do so). Check gov.uk for the current document.
  • Licensing - mandatory HMO licensing applies to larger shared houses (broadly 5+ occupants forming 2+ households), and many councils run their own selective or additional licensing schemes. This is set by your local council - check yours; we never assume an area does or does not require a licence.

5. Listing the property

You can list on Domovita for free. Whether you have one property or a portfolio, the form is the same. Include:

  • EPC rating (required by law to be visible in marketing)
  • Council tax band
  • Deposit amount
  • Bills included (if any)
  • Furnished / part-furnished / unfurnished
  • Pet policy (note: under the Renters' Rights Act, a tenant's request to keep a pet cannot be unreasonably refused)
  • Minimum tenancy length

6. Tenant vetting

Standard checks: photo ID, Right to Rent, proof of address, recent bank statements or payslips, an employer reference and a previous-landlord reference. A referencing service that includes a credit check adds a small fee (around £30-£50 per tenant) and is usually worth it. Note that rental bidding wars are now banned, and you cannot discriminate against tenants because they have children or receive benefits.

7. Tax

  • Rental income is taxable - declare it via Self Assessment.
  • Mortgage interest is no longer deductible from rental income; it is replaced by a 20% tax credit (the Section 24 rules, fully in effect since April 2020).
  • Making Tax Digital for Income Tax applies from 6 April 2026 for landlords with gross property (and self-employment) income above £50,000 - quarterly digital reporting - then above £30,000 from April 2027. Check the current thresholds on gov.uk.
  • Allowable running costs (maintenance, agent fees, insurance, council tax between tenants, service charges, accountancy) are deductible; capital improvements are not deductible against income but reduce Capital Gains Tax on an eventual sale.
  • The Furnished Holiday Lettings regime was abolished from 6 April 2025.
  • Holding property through a limited company is sometimes more tax-efficient for portfolio landlords - this is genuinely individual, so speak to an accountant.

8. Insurance

Standard residential insurance does not cover a let property. You need landlord insurance, which covers buildings plus landlord's liability. Contents cover is optional (the tenant owns their own contents) but worth having if you let furnished.

9. Ending a tenancy (post-Renters' Rights Act)

Since 1 May 2026 the picture is different. Assured shorthold tenancies have converted to periodic assured tenancies with no fixed end date, and Section 21 "no-fault" evictions are abolished.

  • Tenant ending the tenancy - the tenant can leave by giving two months' notice at any point.
  • Landlord seeking possession - Section 8 only - you must rely on one of the statutory grounds (for example rent arrears, anti-social behaviour, or that you intend to sell or move in), served on the prescribed form. Grounds, notice periods and evidence requirements vary - some carry restrictions such as a minimum tenancy length or a re-letting ban. The Section 8 grounds guide covers these in detail, and the court process can be slow.

Because the rules and grounds are detailed and recently changed, get the notice right before serving it - an invalid notice can set you back months. When in doubt, take legal advice.

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