How the UK buy-to-let market is changing

New tenancy rules have applied in England since 1 May 2026. A national landlord register starts on 15 December 2026. Tax on rental profits rises from April 2027, and minimum energy standards tighten by October 2030. Mortgage rates have risen again too.

The lending figures show how landlords are responding. UK Finance data for the second quarter of 2026 shows buy-to-let borrowing is dominated by remortgaging rather than new purchases. Lending to limited companies grew far faster than lending to individuals, and arrears remain low.

Most of the rules described here apply to England. Scotland, Wales and Northern Ireland have their own tenancy laws and, in places, their own tax rates.

The Renters' Rights Act and the new landlord register

The Renters' Rights Act 2025 became law on 27 October 2025 and applies to private renting in England. It is being brought in over several phases.

Phase 1, from 1 May 2026:

• Section 21 "no-fault" evictions were abolished. The last date to serve a Section 21 notice was 30 April 2026.
• Fixed-term assured shorthold tenancies were replaced by rolling, periodic tenancies.
• Landlords seeking possession now rely on the updated grounds in Section 8.
• Tenants gained the right to request to keep a pet, which landlords need a good reason to refuse.

Phase 2, from 15 December 2026: the "Register your rental property" service. Landlords of assured and regulated tenancies must register themselves and each property. The fee is £65 per property per year. Registration needs a GOV.UK One Login account and details such as rent levels and gas, electrical and EPC certificates. The service is rolling out region by region, with a three-month window in each. The deadline depends on where the property is, not where the landlord lives.

Region	Registration opens	Deadline to register
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 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

Landlords with property in several regions can register everything from 15 December 2026. Later phases bring a new private rented sector landlord ombudsman and a Decent Homes Standard for private rentals.

Tax: higher rates on rental profits from April 2027

The Budget on 28 October 2026 announced that, from 6 April 2027, rental profits for landlords who own property personally will be taxed at 24%, 44% and 49%. That is four percentage points above the rates on earnings. The 2025 Budget had already legislated for 22%, 42% and 47%; the new rates still need to pass in the Finance Bill 2026-27. They apply in England, Wales and Northern Ireland. Scotland sets its own rates.

Mortgage interest relief under Section 24 is tied to the property basic rate. It stays at 20% for 2026-27 and, as announced, rises to 24% for 2027-28.

Measure	2026-27	From 6 April 2027 (as announced)
Income tax on rental profit (individuals)	20% / 40% / 45%	24% / 44% / 49%
Section 24 mortgage interest relief	20%	24%
Stamp Duty surcharge on additional homes (England and NI)	5 percentage points	Unchanged
Capital Gains Tax on residential property	18% / 24%	Unchanged
Corporation Tax for landlord companies	19% to 25%	Unchanged

As an illustration, a higher-rate landlord with £20,000 of rental profit and £10,000 of mortgage interest pays £6,000 on the let in 2026-27. At the announced rates the figure for 2027-28 becomes £6,400.

Reporting is changing too. Making Tax Digital for Income Tax has applied to landlords and sole traders with qualifying income over £50,000 since April 2026. The threshold falls to £30,000 from April 2027 and £20,000 from April 2028.

Limited companies are outside the new property income rates. A company deducts mortgage interest as a cost and pays Corporation Tax on profit, though profits taken out as dividends are taxed separately.

More landlords borrowing through limited companies

Lending to limited company landlords is growing far faster than lending to individuals. In the second quarter of 2026, UK Finance figures show company buy-to-let lending rose 60.4% year on year to about £2.61 billion. Lending to individual landlords rose 16.7% to about £8.07 billion. Both figures include refinancing, so they do not show how many homes companies bought.

The tax difference explains much of the interest:

• A company deducts mortgage interest in full as a business cost. Section 24 does not apply.
• Company profits pay Corporation Tax at 19% to 25%, which the Budget left unchanged.
• The new property income rates of 24%, 44% and 49% apply to individuals, not companies.

A company is not automatically cheaper. Profits taken out as dividends are taxed again on the shareholder. Moving property already owned personally into a company counts as a sale, which can trigger Stamp Duty and Capital Gains Tax. The Treasury's own costings expect only a limited move into companies in response to the higher rates. Our limited company guide covers the lending side.

For borrowing, lenders typically test company applications at a 125% rental cover ratio regardless of the directors' tax band, and directors usually give personal guarantees.

Energy efficiency: EPC C by October 2030

The government confirmed in January 2026, as part of its Warm Homes Plan, that privately rented homes in England and Wales must reach at least EPC band C by 1 October 2030. The current minimum is E.

The main points:

• One deadline applies to all tenancies, new and existing.
• A cost cap of £10,000 per property applies. Landlords who spend up to the cap without reaching C may qualify for an exemption.
• The EPC is changing. The new standard uses updated measures of the building's fabric plus either its heating system or smart readiness. An old-style C may not be enough under the new method.
• Some current C ratings will count. Homes rated C under the current method before the reforms apply may be treated as compliant until that certificate expires.

Grants exist but are targeted, usually depending on the tenant's income and the property. VAT on installing energy-saving materials returns to 5% from 1 April 2027, after a period at 0%.

For financing, some landlords are using capital raising on a remortgage to fund upgrades (see can I borrow more when I remortgage?). Some lenders also offer lower-rate "green" buy-to-let products for properties with higher EPC ratings.

Lending, yields and arrears: what the figures show

Buy-to-let lending has picked up, but most of it is refinancing rather than buying. UK Finance's figures for April to June 2026, published on 21 October, show:

Measure	Q2 2026
New buy-to-let loans	58,051, worth £10.7 billion (up 20.6% by number on a year earlier)
Of which remortgages	39,631 (68% of new loans)
Of which purchases	16,026 (just under 28%)
Product transfers with existing lenders	86,300, worth £15.1 billion
Average rate on new loans	4.82%
Average gross rental yield	7.27%
Average interest cover	217%
Mortgages in arrears of 2.5% or more	8,390 (0.44% of buy-to-let mortgages), down 25.6% on a year earlier
Possessions	630, down 20.3% on a year earlier

UK Finance cautioned that the annual growth flatters the market, because spring 2025 was unusually quiet after Stamp Duty changes. Purchase loans actually fell by 845 between the first and second quarters. It expects higher borrowing costs to weigh on demand and flatten lending growth through the rest of 2026.

Yields vary widely by area:

Area	Average gross yield on new lending, Q2 2026
Scotland	8.61%
Wales	7.75%
Northern Ireland	7.46%
England	7.11%
London	6.14%

Since these figures were collected, rates have risen further. The average fixed buy-to-let rate stood at 5.79% at the start of October 2026, and Bank Rate rose to 4% on 5 November. See what rising interest rates mean for landlords.

What these changes mean for landlords remortgaging

Several of the changes feed directly into a remortgage application:

• Rent and the rental test. In England, rent can now only be increased once a year, through the section 13 process with at least two months' notice. Rental bidding is banned. Because lenders size loans on rent, the timing of rent reviews matters more than before.
• Paperwork. Registration on the new landlord register needs gas, electrical and EPC certificates. Lenders commonly ask for current tenancy details and evidence of rent too, so the same documents serve both.
• Energy ratings. With EPC C due by October 2030, some landlords are raising money on a remortgage to pay for upgrades.
• Tax and ownership. Higher tax on personal rental profits from April 2027 is prompting some landlords to review whether property is held personally or through a company.
• Rates. With Bank Rate at 4% and lenders' stress rates higher, the same rent may support a smaller loan than at the last remortgage.

Key dates

Date	What happens
1 May 2026	Renters' Rights Act phase 1 in England: Section 21 abolished, periodic tenancies
15 December 2026	Landlord register opens, starting in the West Midlands
17 December 2026	Next Bank of England rate decision
1 April 2027	VAT on energy-saving materials returns to 5%
6 April 2027	Property income rates of 24%, 44% and 49% (as announced); Making Tax Digital threshold falls to £30,000
14 November 2027	Final regional deadline for the landlord register (South West)
6 April 2028	Making Tax Digital threshold falls to £20,000
1 October 2030	Privately rented homes in England and Wales must reach EPC C

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Important information. This article is general information about the UK buy-to-let market, written as at 7 November 2026. It is not financial, tax or legal advice and is not a recommendation of any product or course of action. Tax measures marked "as announced" still need to pass into law, and rules can change. For tax and legal questions, speak to a qualified accountant, tax adviser or solicitor. Buy to Let Remortgages does not give advice or arrange mortgages. We pass enquiries to a buy-to-let mortgage broker. Most buy-to-let mortgages are not regulated by the Financial Conduct Authority. All lending is subject to the lender's criteria, valuation and underwriting. Your property may be repossessed if you do not keep up repayments on your mortgage.

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