Welcome to 2026! You made it through 2025 as a landlord, and you’re still standing. Not everyone is!
2025 was a tough year for landlords, but realistically it was dominated by uncertainty due to talk and debate about the shape of reform to come and potential tax rises, rather than experiencing any real change. Nevertheless, just that talk caused many HMO landlords not just in Ipswich but across the UK to reassess their choices.
Some have left the sector, as I reported in an article last year here, either selling up altogether or moving to traditional residential lettings, such as family lets, due to the idea that there is reduced oversight and legislation in that market.
At the same time, it gave traditional residential landlords similar pause for thought. Many have done the opposite, actively seeking to enter the HMO space, recognising the higher returns a well-managed HMO can often yield.
At the same time, here at LEA Property Solutions, we have welcomed brand new landlords altogether into the sector, younger landlords, Millennials and even Gen-Z buyers, who are coming onto the scene with a different way of thinking, often having incorporated limited companies from the outset as a vehicle to building HMO businesses.
These aren’t accidental landlords. They are letting out in the shared housing sector with genuine intent.
I wrote about this phenomenon recently in my article here, and contacts of mine from the industry across the country have been in touch to say they are also seeing the same in the areas they operate in.
As the dust settles on what was, in many ways, a tumultuous year, we see factors like this as evidence of a steadying of the ship as we head into 2026.
But we also know that the year ahead will bring its own disruption to the sector.
If last year was all about talk, this year is the year that landlords and their agents need to walk the walk.
2026 brings a combination of regulatory reform and tax changes, compounded by evolving tenant behaviour and longer-term questions around property standards.
None of this exists in isolation, though. For HMO landlords especially, these changes intersect in ways that make professional management, good systems, and forward planning more important than ever, and that is where great professional HMO property management comes into its own.
Here are the key themes we’re helping our clients navigate right now.
The Renters’ Rights Act 2025: greater implications for shared homes
The headline change for 2026 is the introduction of the Renters’ Rights Act in May, the most significant overhaul of the private rented sector in decades.
I’ve written about this Act and the changes that we will see several times. For more, see my article here.
One of the main changes we will see is the Act removing fixed-term tenancies and ending so-called “no-fault” evictions. Landlords will need clear, lawful grounds to regain possession, and tenants can leave with two months’ notice at any time.
For HMO landlords, this matters more than many realise.
Shared houses already operate with higher tenant turnover, more complex occupancy arrangements and tighter compliance requirements. Under the new regime:
• Rent increases must be carefully justified and correctly evidenced
• Property condition and maintenance records matter more than ever
• Poor practice, particularly in sub-standard HMOs, will face far greater scrutiny, especially as later ‘decent homes standards’ legislation gets phased in
One factor in particular that HMO landlords will need to stay ahead of is enforcement. Local authorities will have enhanced enforcement powers, including a new ability to issue fines of up to £40,000 for non-compliance – and you can be sure that authorities will be out there looking to enforce.
From our perspective, this isn’t about “catching landlords out” it’s about raising standards. Well-run HMOs, managed properly, have absolutely nothing to fear. Poorly run ones should. This is just about making sure things are done properly, and that is exactly what our job is anyway.
Making Tax Digital: admin pressure builds
In April, a major change will begin to be implemented in how many landlords report their income. I wrote about this more fully in an article last year – click here for more.
Landlords with total property income – or total self-employed income, including contributions from property – amounting to above £50,000 will need to submit quarterly digital updates to HMRC, rather than an annual return.
Over the next few years, this will extend to those earning less.
For HMO landlords – who often have multiple income streams, higher expenses and more complex accounts – this is not a straightforward change. It means:
• Digital record-keeping is no longer optional; it is a basic requirement
• Good bookkeeping systems are essential
• Professional advice is becoming a necessity, not a luxury
We’re already seeing some smaller or accidental landlords question whether the additional admin is worth it. Others are restructuring, incorporating (as we have seen younger landlords do from the outset), or scaling up more deliberately.
EPCs: no clarity, but the direction of travel is clear
Energy performance standards haven’t changed yet, but there is every expectation that they will.
The government has signalled its intention for all privately rented homes to reach an EPC rating of C by 2030. Final details are still awaited, and who knows, this date might be pushed back – it has been pushed back once before. But nevertheless, the direction of travel is there to be seen.
HMOs, particularly older Victorian and Edwardian properties, as so many are here in Ipswich, are likely to need upgrades – and upgrades can be costly, disruptive and difficult to plan without firm guidance.
Landlords who take a proactive, phased approach – improving insulation, heating systems and overall efficiency where possible – will be in a much stronger position than those who wait for deadlines to loom, and so our advice to clients is to assess now what needs to be done to lift their property to a C if it currently falls short, and plan in those works over the course of the next three or four years – ahead of time.
We know there’s a chance that this legislation won’t come through, but if that is the case, then the worst that will happen is that landlords will have a better, more efficient and less costly property to run as a result.
Rents and demand: a more balanced market emerging
After several years of relentless competition, the rental market is starting to rebalance.
Tenant demand has begun to soften slightly in some areas, not necessarily because supply has edged upwards, but because there have already been inflation-beating rent rises over the past five years.
In November 2025, the average rent for a property in Ipswich was recorded at £974 by the Office for National Statistics (ONS) – a 5.5% increase from £923 in November 2024.
In practical terms, the softening of rents means:
• Less scope for aggressive rent increases
• Greater importance placed on quality, presentation and management
• Better properties to stand out more clearly from poorly run stock
In shared housing, tenants are increasingly value-driven. They expect clean, safe, well-managed homes that provide a sense of community, not just a roof over their heads – and they’re more willing to walk away if standards aren’t met.
The rise of the “professional” landlord
One of the most interesting long-term shifts we’re seeing is who is staying in the sector.
As mentioned already, some landlords are exiting the space, but we are seeing others – often younger, more commercially minded investors – coming into the market, buying through limited companies, planning for scale, and focusing on higher-yielding models such as HMOs.
This is particularly true in towns like Ipswich, where demand for shared housing remains strong and well-run HMOs continue to perform.
In general, private rented sector landlords aren’t disappearing; they are adapting. They’re treating property as a business, not a sideline. And that is an approach that aligns well with the direction regulation is heading.
Final thoughts: standards, systems and support
2026 brings stability to the market, with clearer frameworks to operate within.
But it also brings challenges.
It isn’t necessarily going to be an easy year to be a landlord but it will be a manageable one, especially if landlords seek the help of a professional advisor or managing agent.
The message from government, local authorities and tenants alike has been consistent, so there are no surprises about what is being demanded: higher standards, better management, and greater accountability.
For HMO landlords who embrace that – who invest in their properties, their processes, and the right professional support – there is still a strong, sustainable future in this sector.
At LEA Property Solutions, our focus remains the same as it always has been from the very start: helping good landlords run good HMOs in Ipswich properly.