UK landlords face a tougher second half of 2026, due to rising costs, new tenant protections and looming green-home rules, according to property expert Jonathan Rolande.
Jonathan suggests that the abolition of so-called no-fault evictions under the Renters' Rights Act has already pushed some landlords out of the market.
However, he also believes those who stay organised and compliant will be the ones with the best chance of navigating the challenges the second half of 2026 will bring.
"The second half of 2026 is likely to reward those who plan ahead, maintain high standards and view compliance not as a burden, but as an essential part of running a successful property business," he said.
"Landlords who combine sound financial management and hold onto good tenants are likely to be the ones who do well. The landlords who will succeed over the next few years won't necessarily be those with the biggest portfolios, but those who are the best organised.
"Professional management, good communication and staying ahead of regulation are now just as important as choosing the right property in the first place."
Here are Jonathan's five biggest challenges for the remainder of the year, and how to tackle them.
1. Understand the law
The introduction of the Renters' Rights Act has fundamentally changed the relationship between landlords and tenants, particularly with the abolition of ‘no-fault’ evictions.
Many landlords were nervous about the reforms, as witnessed by many leaving the market. But it is navigable; it just requires better admin and a realistic acceptance that it might take longer to deal with troublesome tenants.
It’s important to review tenancy agreements, ensure all paperwork is up to date and familiarise yourself with every aspect of the new rules. Keeping detailed records of inspections, repairs and tenant communications has become more important than ever.
2. Rising costs and compliance
Running a rental property has become increasingly expensive so it’s best to take a proactive approach rather than wait for issues to arise. Looking after a property properly protects both your investment and your relationship with tenants.
Maintaining your property well with a regular schedule of upkeep and repairs, as well as organising safety certificates, insurance and licensing requirements, will help to keep costs down.
Setting aside a dedicated maintenance fund also helps avoid expensive emergency repairs that often occur at the worst possible time.
3. Protecting profitability
Forget about those previously ground-level interest rates we’ve experienced in the past: that era is over. While mortgage rates have eased back a bit since 2022, you will need to factor in higher borrowing costs and increased costs for everything from insurance to building work and the possibility of further tax rises.
For many investors, this is an ideal time to review the performance of each property individually.
You need to ask yourself whether the income from renting a specific property still provides sufficient cash flow, whether improvements could justify higher rents, or whether refinancing could improve returns. In some cases, disposing of underperforming properties may make more financial sense than holding onto them indefinitely.
4. Retaining good tenants
A good tenant is worth their weight in gold, and the best tenant is often the one who stays. While finding them has always been important, now retaining them is even more valuable.
Longer-term tenants reduce costs and lower uncertainty, which comes with void periods, cleaning and redecoration and the inevitable admin.
As tenants have greater flexibility under the new tenancy framework, landlords who provide a positive renting experience are more likely to enjoy longer tenancies and lower turnover. Looking after good tenants is one of the soundest business decisions you can make.
5. Preparing for further regulation
Regulation isn’t going away, and with the pressure on housing only likely to increase, politicians will need to demonstrate to voters who are struggling with housing that they are doing something.
Upcoming changes include the Private Rented Sector Database, the Decent Homes Standard, legislation known as ‘Awaab’s Law’ with strict timeframes for repairs and the Greener Homes Mandate, which will require all privately rented homes to reach an energy efficiency rating EPC of C or better.
It’s better to be ahead of the curve on these issues, and joining a professional landlord association and digitising your administrative processes can help you keep up to date with changes and ensure compliance.
