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Between tax hikes, new tenant protections, and a host of compliance requirements, many landlords are left scratching their heads over how to maintain the best rental profits.
In many cases, the accountant is the first port of call for any property investor looking for advice. By getting to grips with the full range of challenges your landlord clients face, you’ll set yourself apart from accountants who focus solely on the financials.
Read on to explore the current state of property tax and regulations and how you can turn challenges into opportunities for practice growth.
Tax Changes Hitting Investor Wallets
First, we have the tax changes brought about by the Autumn Budget, particularly stamp duty and national insurance, though changes to business and agricultural property relief will also come into focus for some.
SDLT: The Cost of Buying Just Went Up
Since April 1, 2025, purchasing investment property has become significantly more expensive. The nil-rate threshold has dropped to £125,000 (from £250,000), and the additional property surcharge has jumped to 5% (from 3%).
What does this mean in real terms? A landlord buying a £300,000 property now pays £20,000 in stamp duty — that’s £3,500 more than before these changes.
Each additional property is now taxed at higher rates: 5% on the first £125,000, 7% on the portion between £125,001 and £250,000, and 10% above £250,000 — all of which include the new 5% surcharge for additional properties.
National Insurance: Higher Costs for Landlord Companies
For landlords operating through limited companies and employing staff, the April 2025 National Insurance changes add another cost pressure. The rate has increased to 15% (from 13.8%), while the earnings threshold before payment begins has dropped to £5,000 (from £9,100).
The good news? The Employment Allowance has doubled to £10,500, which will help smaller landlord businesses offset some of these increases. This creates an excellent opportunity to review how your clients structure their property businesses.
Making Tax Digital Ends Tax Returns as We Know It
MTD signals the relative end of the annual tax return, giving way to a whole new system that many sole traders and landlords aren’t prepared for. April 2026 introduces MTD for landlords and self-employed with gross earnings above the £50,000 threshold, with £30,000 and £20,000 thresholds in the years following.
What Your Clients Need to Do Now
Even though the deadlines seem far away, it’s vital to choose and implement MTD-compliant systems ahead of the deadline. All the big names – Xero, QuickBooks, FreeAgent, Sage – are ready to go.
But we’ve also seen some property-specific options, such as Landlord Studio, which offer handy, specialised tools designed particularly for property accounting:
- Track income and expenses per property
- Scan and store receipts digitally
- Connect with bank accounts to import transactions
- Generate MTD-compliant reports
- Export data to accounting platforms like Xero
Landlord Studio stands out from generic accounting software because it’s built specifically for property investors, who will face fairly complex processes under MTD compared to many sole traders.
Early adopters will benefit from better financial visibility long before the mandated deadlines, while avoiding the last-minute rush to comply.
Property Regulations That Affect Accounting Decisions
Part of the reason why property accounting is so complicated is that it intersects with several complex regulations, which, again, are multiplying. From increased rights for tenants to leasehold reform and tightening environmental regulations, there are plenty of costs to factor into property decisions.
Renters’ Rights Bill
Coming into force in autumn 2025, the Renters’ Rights Bill fundamentally changes how rental property works:
- Fixed-term tenancies will be abolished – everything becomes periodic
- Section 21 “no-fault” evictions will end
- Tenants can leave with just two months’ notice
- Landlords must join a new ombudsman scheme
Together, these changes mean landlords can’t count on 6-12 month tenancy commitments anymore. A tenant could move in and give notice just two months later, creating potential cash flow problems, especially for landlords with mortgages to pay.
Talk to your clients about building stronger financial buffers to handle gaps between tenants. Those with multiple properties might need to rethink how they spread their risk.
Leasehold Reform: New Rights and Obligations
For landlords who own leasehold properties, leasehold reforms kicked in during early 2025:
- The “two-year rule” was abolished on January 31, 2025, meaning leaseholders no longer have to wait two years after purchase to extend their lease or buy the freehold
- Right to Manage provisions expanded in March 2025, making it easier for leaseholders to take control of building management
- Standard lease extension terms increased to 990 years
- Marriage value removed from calculations
You can help clients assess whether now is the right time to extend leases, especially for properties with shorter remaining terms where lease length affects value.
Environmental Standards: EPC Requirements Getting Tougher
The government is proposing to raise the minimum Energy Performance Certificate (EPC) standard for rental properties from the current “E” rating to a “C” rating.
- Proposed implementation for new tenancies from 2028
- Existing tenancies would need to comply by 2030
- A spending cap of £15,000 per property is proposed before exemptions apply
For landlords with older properties, this could mean significant investment in insulation, heating systems, windows, and other energy efficiency improvements. Properties that can’t be economically upgraded may need to be sold, repurposed, or registered for exemption.
You can help clients:
- Assess which properties need improvement
- Model the costs against expected returns
- Explore available grants and exemptions
- Make informed decisions about keeping or selling affected properties
Other Compliance Requirements Adding Costs
Beyond these headline changes, landlords face numerous other compliance obligations that add significant costs to their property businesses:
Electrical Safety Certificates
2025 marks the first five-year renewal cycle for Electrical Installation Condition Reports (EICRs) that became mandatory in 2020.
All rental properties must have a valid certificate performed by a qualified electrician, with typical costs ranging from £150-£300 depending on property size. Many landlords will face renewal costs simultaneously, potentially creating high demand for qualified electricians and driving up prices.
HMO Licensing
HMO licensing fees have increased significantly, now typically costing between £500 and £1,500 for a five-year license period.
Additionally, HMOs face stricter requirements, including emergency lighting in communal areas, enhanced fire safety measures, and minimum room size standards.
With many local authorities expanding their licensing schemes, more landlords are finding their properties now require licensing when they previously didn’t.
Awaab’s Law Requirements
The extension of Awaab’s Law from social housing to private rentals creates new obligations for landlords.
They must investigate hazards within 14 days of a complaint, provide written reports within 48 hours of inspection, and start repairs within 7 days for health risks. Emergency repairs must be completed within 24 hours.
Legionella Risk Assessments
While less frequently discussed, landlords remain legally responsible for ensuring their properties are free from Legionella bacteria. Legionella assessments should be conducted regularly, especially after property vacancies or system changes.
For landlords with multiple properties, these compliance requirements can add thousands to annual operating costs.
In all of these scenarios, tools like Landlord Studio help track these obligations with automated reminders for renewals and a centralised system for storing compliance certificates – hugely valuable as penalties for non-compliance continue to rise.
Understanding the Broader Picture Helps You Add More Value
Now that we’ve seen the full range of changes affecting landlords, it’s clear that accounting services will be in great demand if you deliver value where it matters.
When you can talk knowledgeably about how regulatory changes affect your clients’ businesses, you become a partner in their ongoing success, enabling you to:
- Build more accurate financial forecasts that include compliance costs
- Identify potential problems before they hit your clients’ bottom line
- Provide informed advice about which properties to keep or sell
- Help clients make better investment decisions
The result? Higher client satisfaction, better retention, and more referrals to grow your practice.
Prepare Your Practice For The Future of Property Accounting
The flood of new regulations hitting landlords over the next few years might seem like bad news, but for forward-thinking accountants, it’s a window to add more value, deepen client relationships, and grow your practice with landlords who truly appreciate what you bring to the table.
MTD is a key change you can act on today. Consider starting by getting your landlord clients set up with Landlord Studio today.
Their MTD-compliant platform is designed specifically for property investors, making it easy to track income and expenses, manage properties, and generate the reports you both need for tax compliance and strategic planning.
Visit Landlord Studio’s Accountant Partner Program to learn how you can offer this valuable tool to your clients while streamlining your own workflows and building a more profitable practice.
