Landlords’ Mid-Year Check-In: Seven key updates every landlord should know

We’re already halfway through the year, making it the perfect time for landlords to look back on whats happened and what’s still to come. The first half of the year has brought several important developments for the private rented sector, from new legislative progress to ongoing consultations and regulatory shifts that could have long-term implications for how landlords manage their properties.

One of the most closely watched pieces of legislation, the Renters’ Rights Bill, is making its way through the House of Lords, potentially bringing significant changes to tenancy law. Meanwhile, updates around Making Tax Digital are beginning to shape how landlords handle their finances, and proposed reforms to energy efficiency requirements continue to spark debate across the sector.

In this mid-year check-in, we’ll explore seven key updates that every landlord should be aware of what’s changed so far in 2025, what’s on the horizon, and how you can stay compliant and prepared.

A major tax update revealed in the 2024 Autumn Budget is the increase in capital gains tax (CGT) on second homes.  

Starting April 2025, the lower CGT rate jumps from 10% to 18%, and the higher rate climbs from 20% to 24%. This means selling second properties, like buy-to-let homes, will now come with a steeper tax bill for landlords. 

In fact, a recent NRLA survey of 882 landlords found that 83% identified the potential CGT rise as their top concern – ahead of proposed energy efficiency changes and the Renters’ Rights Bill. 

In April, the Local Housing Allowance (LHA) rates were frozen in cash terms. Although there was an increase in April 2024 the first in four years the recent freeze means LHA rates will stay unchanged for 2025/26. Housing benefit rates continue to be reviewed annually. 

If you're a landlord looking to better understand how housing benefits, Universal Credit, and Local Housing Allowance (LHA) affect your tenants and rental income, our comprehensive guidance on tax and benefits has everything you need.

On 14 May 2025, new rules came into force requiring letting agents in the UK to now comply with new financial sanctions regulations. The regulations place stricter obligations on them to prevent sanctioned individuals or entities from operating in the rental market. 

This means that letting agents must report to the Office of Financial Sanctions Implementation (OFSI).  

A relevant firm is required to report to the OFSI as soon as practicable if it knows or has reasonable cause to suspect that: 

• A person they are dealing with is a designated person; or 

• A person they are dealing with has committed a breach of financial sanctions regulations. 

There are also new rules that have been introduced on advertising homes to let. 

Rules regarding the information that should be included in advertisements for rental homes have been withdrawn, following the introduction of new legislation. 

Material information guidance was introduced in 2023 to make sure tenants were in possession of all the facts when taking on a property – and to ensure landlords and agents were meeting their legal obligations. 

The rules have now been superseded, after the Digital Markets, Competition and Consumers Act (DMCCA) was introduced on 6th April, replacing the Unfair Trading Regulations 2008, on which the initial guidance was based.  

Although the Act does not significantly alter the types of behaviour that were considered unfair before, but does update the rules to focus more on digital services, as well as clarifying particular unfair practices such as creating fake reviews.   

The Renters’ Rights Bill has progressed significantly since January, and is currently in Report stage in the House of Lords. This means that it is just a few stages away from gaining Royal Assent. 

The Bill will become an Act, and will include several measures that will significantly change the way landlords operate in England. 

AST fixed term tenancies will be abolished, and there will be changes to the way landlords can gain possession of their properties, with Section 21 to be axed and changes to Section 8 grounds. 

There will also be new compliance rules for landlords to adhere to, a new private rented sector database, and major changes to rules around how much rent can be taken in advance, with a complete ban on rental bidding wars. 

The Bill is expected to gain royal assent in the summer – but there is also expected to be an implementation period. 

The NRLA has all the resources landlords need to navigate the biggest changes to renting in decades. 

Members can access our preparing for the Renters’ Rights Bill guidance , and we will have a full suite of templates and guides coming soon. Members can also contact our landlord support team for support and advice on all the changes. 

Making Tax Digital is a government initiative that’s shaking up the old ways by moving everything online. If you own rental properties, this means you’ll need to keep and submit your income and expense records using specially approved digital software. 

But it doesn’t stop there instead of just filing a yearly tax return, some landlords will now have to send in updates every quarter, hitting deadlines on May 7th, August 7th, November 7th, and February 7th. 

If you earn over £20,000 a year from your properties and pay tax through Self-Assessment, this new digital approach will definitely affect you. Stay ahead of the curve by knowing when your compliance deadlines kick in and getting set up with the right tools. 

Some key Making Tax Digital dates have now been announced- these are below. 

• From 2026: Landlords with annual income of £50,000 or more must comply  

• From 2027: This is extended to landlords earning £30,000 or more annually  

• From 2028: The new rules apply to landlords with income of £20,000 or more per year.   

The Government ran two major energy efficiency consultations earlier this year. 

One was a consultation on changing EPC certificate methodology – with another consultation around changing the minimum energy efficiency requirements for rental properties. 

What we do know if that a new EPC assessment method will be starting in 2026, with details yet to be revealed. 

• You can find out more about the current rules on minimum energy efficiency standards in rental homes in our free guide for landlords. 

• Want to find out more about proposed changes, and the grants available to improve the energy efficiency of your rentals? Visit our energy efficiency hub. 

Want to brush up your knowledge? The NRLA runs a Legislation Update course designed for landlords to gain an understanding of forthcoming property market changes, as well as changes that have recently been introduced. The next date for this course is 11th June. NRLA members can enjoy a discount on this training course. Secure your spot today and stay compliant with the latest landlord legislation by booking your place now.