Landlord Eye #02 - Navigating rental reform, MEES & Making Tax Digital

Introduction

In May 2025, over 1,475 landlords across England & Wales shared their experiences in our second quarterly Landlord Eye survey - and the findings reveal how the market is shifting under new legislation and compliance pressures. In this edition you’ll discover:

• Awareness of the Renters’ Reform Bill and landlords’ preparations.
• How landlords are managing arrears ahead of the RRB.
• Impact of MEES on student-letting portfolios.
• Effects of Section 24 mortgage relief changes.
• Readiness for the new Making Tax Digital rules.

Landlord Confidence

The Landlord Confidence Index edged up to 32.1 (+0.7 pts Q/Q) but remains firmly negative—among its lowest since 2019. Wales led all regions despite a slight dip this quarter.

• Top discussion drivers: Renters’ Rights Bill (41% mentions), Government policy (28%), Compliance burdens (26%).
• Landlords continue to cite regulatory uncertainty – particularly around the Renters’ Rights Bill and Minimum Energy Efficiency Standards (MEES).
   

Renters' Reform Bill

Landlord awareness was high overall, but landlords are split on how to respond to anticipated changes: 

• 93% fully or partially aware; 7% “not really aware”.
• 24% planning to exit the PRS; 24% adopting a “wait and see” stance.
• Top preparation steps: tighter tenant vetting and increased use of agents.

Managing arrears & County Court Judgements

The prospect of managing arrears without Section 21 where lengthy delays remain in court possession cases is changing how landlords think about tenant selction. 

• 41% of landlords saw tenants rent arrears in the past two years.
  • Of those, 38% pursued a CCJ; 34% tenants eventually repaid; 28% landlords wrote off the debt.

Future tactics to dealing with arrears:

• Stricter tenant vetting.
• Rent‑guarantee insurance.
• Increased use of guarantors.

EPCs, MEES and student landlords

Landlords face looming EPC deadlines, with older stock and student lets particularly at risk.

• 63% of all landlords - and 58% of student-sector landlords - report at least one property rated EPC D or below.

Student landlord challenge:

• With typical tenancies renewing annually, student landlords may only have one summer (2027) to complete upgrades ahead of the 2028 deadline.
• Many warn that this is not enough time: trades shortages and assessor delays may push works into term-time, disrupting students and risks potentially shrinking the student-housing stock. 

Making Tax Digital

From April 2026 landlords earning over £50k in rent (drops to £20k in 2028) must file quarterly updates via approved software. 

• Awareness: 27% "not at all" or "not really"; 26% "somewhat".
• Confidence: 34% fully confident on income reporting.
• Impact expectation: 67% expect new rule will affect them by 2028.

Main concerns raised:

• Increased administrative burden.
• Additional costs for software and accounting support.
• Confusion over qualifying income.

Section 24

The phased removal of Section 24 tax relief is prompting many landlords to reconsider their long-term investment strategies.

• 54% likely to sell more buy-to-let properties over the next five years.
• 36% considering complete exit from the Buy-to-let market.
• If the 20% tax credit is repealed: 33% more likely to sell; 30% more likely to quit.