Key Post Summarising the rules for small landlords with existing tenancies

[Fevertree]

All landlords who enter a new tenancy on or after 1st March 2026 will have the right to reset rent to market rate but not for ‘nofault’ evictions

From page 11.

 

[Greenbook]

"tenancies will be kept up to date by the 2% maximum yearly rent cap or the six years reset of rents applying to smaller landlords."

"With first time tenancies created from 1 March 2026 onwards there will be a new distinction between landlords based onsize. For larger landlords, defined as havingfour or more tenancies, no fault evictions will be gone entirely, except in very limited circumstances. Smaller landlords, defined as having three tenancies or less, can reset rents every six years."

From the same page and both of these read to me that the 6 year reset only applies to small landlords.

I had thought that the six year increase applied to both types of landlord, but perhaps not as large landlord tenancies last forever. I am confused by this, but presumably IPAV know what they are talking about

If they are correct, is being a large landlord viable? The tenant can stay forever and the rent will continue to fall in real terms while the landlord remains liable for repairs and maintenance

 

[bipped]

If they are correct, is being a large landlord viable?

Chatting to a letting agent I know last week and one of her clients is a landlord with one property containing four units so, a large landlord under the new rules. The tenancies are all in six-year cycles and the landlord has already issued a termination notice to one tenancy to ensure they will be a small landlord from Mar26.

Looks like the latest changes might not result in more rental supply and could actually have the opposite effect if a sizeable number of four tenancy landlords decide to drop one.

Just wondering what happens if say a married couple has six tenancies? Does the three tenancy rule apply to each individual ie. a couple can have six and each classed as a small landlord? Especially if the couple are separately assessed for tax.

 

[Greenbook]

Just wondering what happens if say a married couple has six tenancies? Does the three tenancy rule apply to each individual ie. a couple can have six and each classed as a small landlord? Especially if the couple are separately assessed for tax.

We'll have to wait and see the draft legislation. I suspect that the married couple with six tenancies will be a large landlord. They will want to catch as many people as possible in this category as the tenancies are forever and, it seems, you can't increase the rent to the market rate for as long as a tenancy lasts.

 

[bipped]

I suspect that the married couple with six tenancies will be a large landlord.

Right and it may be the same for other joint owners. It’s odd that Revenue can treat individuals separately, the bank guarantee is per person, every individual is entitled to earn a living etc. Wouldn’t a joint owner with six tenancies be discriminated against compared to a single owner of three based on marital status?

 

[Greenbook]

Right and it may be the same for other joint owners. It’s odd that Revenue can treat individuals separately, the bank guarantee is per person, every individual is entitled to earn a living etc. Wouldn’t a joint owner with six tenancies be discriminated against compared to a single owner of three based on marital status?

With tax law and company law, 'connected people' married couples, family members are often joined together. I'm assuming the same thing will happen here as they will want as many large landlords as possible, but that is just my assumption. We won't know until we see the legislation.

 

[Greenbook]

Chatting to a letting agent I know last week and one of her clients is a landlord with one property containing four units so, a large landlord under the new rules. The tenancies are all in six-year cycles and the landlord has already issued a termination notice to one tenancy to ensure they will be a small landlord from Mar26.

My wife was talking to a small landlord she knows who has one property a couple of days ago. Himself and his wife bought during the boom, it was a big mistake, but they were able to keep going with it and have had the house for over 20 years now. They are selling. He said with the new rules coming in it is just too much hassle. He's had a few 'maggots' of tenants in the past and won't risk being stuck with one for 6 years. These sales may be across the board.