The Landlord Briefing: Tax Pressure, Possession Chaos, and a Shifting Market

Compiled by Regulus from the week's coverage · Editor: Paul McGough · 13 November 2026

This week's stories circle around two fault lines running through the private rented sector: a tax environment that many landlords feel is pushing them into a corner, and a possession system under serious strain following the abolition of Section 21. Alongside those pressures, there are modest signs of resilience — arrears are falling, yields are holding up in some markets, and EPC ratings in the PRS are slowly improving.

Tax & Finance

From April 2027, property income tax rates are due to rise by four percentage points compared with current rates — taking higher-rate landlords in England, Wales and Northern Ireland to new thresholds. Labour has maintained this does not breach its pledge not to raise taxes on working people, a distinction many landlords dispute. If you are budgeting rental income for the next financial year, this change needs to be factored in now. Property118

A related commentary piece notes that some landlords are holding on to properties they would otherwise sell, partly out of concern for existing tenants — a dynamic that rarely features in public debate about landlord behaviour. The practical implication is that tax-driven decisions are increasingly shaping portfolio management in ways that are hard to plan around. Property118

Among limited company landlords, confidence in portfolio expansion has dropped sharply: only 11% plan to grow their portfolios over the next year, down from 38% in the spring, according to Kensington Mortgages' BTL Barometer. The proportion describing mortgage finance as easy to access also fell from 74% to 42% — worth bearing in mind if you are weighing up whether to remortgage or expand. Property118

Evictions & Possession

Landlords filed a quarterly record 12,156 accelerated possession claims before Section 21 was abolished on 1 May — 68% more than the same quarter a year earlier — yet fewer landlords actually regained their properties that quarter. This suggests the rush to file did not translate into faster outcomes, and the courts were already under pressure before the full volume of post-abolition claims arrived. Property118

Private landlord possession claims have now surged 21% to 28,249, and there are warnings that underfunded courts cannot keep pace with rising demand. For self-managing landlords who may need to regain a property, longer waiting times are a real operational risk — make sure your paperwork and grounds are watertight before filing. Landlord Today

Regulation & Compliance

Property lawyer David Smith reports seeing an increase in notices served on landlords and agents under section 114 of the Renters' Rights Act. Crucially, landlords can be required to compile fresh tenancy records for council investigators — not just hand over documents they already hold — which raises the bar for record-keeping significantly. If your tenancy files are not in order, now is the time to address that. Property118

Research from Flatfair warns that tougher referencing requirements and guarantor demands under the Renters' Rights Act could inadvertently screen out otherwise suitable tenants. Separately, LRG data shows only 39% of renters feel safer since Section 21 was abolished, with good communication and fair treatment identified as the main drivers of tenant confidence. Both findings point in the same direction: proportionate referencing and clear communication are likely to serve landlords better than defensive over-screening. Landlord Today | Landlord Today

Energy & EPC Standards

More than 90,000 PRS homes in England and Wales have improved their EPC rating to C or above, but almost 160,000 remain below the threshold, according to data from Upgraded Intelligence. Progress is being made, but the gap is still substantial — if your property sits below EPC C, it is worth getting an up-to-date assessment and identifying what improvements are cost-effective before any regulatory deadline is confirmed. Property118

Market Conditions

Buy-to-let arrears fell 22% over the year to 8,170 mortgages in arrears in Q3 2026, though lender possessions rose 10% in the same quarter. The divergence — fewer landlords in trouble overall, but more losing properties — may reflect a backlog of older cases finally clearing through. Property118

Despite the regulatory backdrop, Virelle Group reports growing investor confidence driven by limited housing supply and strong tenant demand supporting higher yields. In London, Chestertons notes the buy-to-let market is showing signs of recovery, with UK Finance data recording 16,026 properties purchased using buy-to-let mortgages across the UK in Q2 2026. For landlords already in the market, these conditions offer some reassurance that demand fundamentals remain solid. Landlord Today | Property118

What to Do About It

• Review your tax position ahead of April 2027. The planned four-percentage-point rise in property income tax rates means your net rental income calculation needs updating — speak to an accountant if you have not already modelled the impact.
• Audit your tenancy records now. Given the increased use of section 114 notices requiring landlords to compile fresh records for council investigators, ensure your files — tenancy agreements, correspondence, compliance certificates — are complete, current, and readily accessible.
• Check your EPC rating and plan upgrades. With almost 160,000 PRS homes still below EPC C, assess where your property sits and identify practical improvement steps before any mandatory deadline is set.
• Build in extra time for any possession action. With courts already struggling to process a 21% rise in claims, any possession case is likely to take longer than it would have previously — factor this into your financial planning and do not rely on a quick resolution.

Every story above links to its original source. For what the rule changes mean for your own tenancies, see the Renters' Rights Centre and the free landlord tools.

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