What changed in 2026? UK property rules

2025 and 2026 brought a wave of rule changes to the UK property market — some already in force, some confirmed for the next few years. They affect everyone: buyers, sellers, tenants and landlords. This page pulls them all together in plain English, starting with Stamp Duty, then working through every change that matters, each with the key points and a link to a fuller guide.

Why it matters now: a lot of decisions get made on out-of-date information — an article from two years ago, or advice from a friend that was right then but isn't any more. A few percent of tax, one new reporting duty, or a single changed contract term can mean thousands of pounds or an entirely different set of rights. Here's exactly what applies in 2026.

A lot of older articles online still show 2024 rules. This page covers only what applies — and what's confirmed — as of 2026.

1. Stamp Duty — unchanged, but check the 2025 rates

Stamp Duty Land Tax (SDLT) is the tax you pay buying a home in England and Northern Ireland. The big news for 2026 is that the November 2025 Budget made no changes to it — despite speculation about reform, the rates set in 2025 still stand. The trap is that those 2025 rates are less generous than the temporary ones before them, so anyone working from an old calculator will under-budget.

• From 1 April 2025 the 0% threshold returned to £125,000 (it had temporarily been £250,000).
• First-time buyer relief: 0% to £300,000, then 5% from £300,001 to £500,000 (no relief above £500,000).
• From 31 October 2024 the surcharge on a second home / investment is +5% (bands 5 / 7 / 10 / 15 / 17%).

Remember the tax is charged in bands — each slice of the price at its own rate, not one rate on the whole sum. For exact rates, first-time buyer conditions and worked examples: Stamp Duty when buying a home — full guide →

2. New "mansion tax" on homes over £2m

Announced in the November 2025 Budget, the High Value Council Tax Surcharge — widely called the "mansion tax" — is a brand-new annual charge on the most expensive homes. It won't affect most movers, but it's the headline new property tax, so it's worth understanding.

• It applies to homes worth over £2 million.
• Properties will be valued in 2026, and the charge is collected alongside council tax from April 2028.
• Annual bands: £2,500 (£2m–£2.5m), £3,500 (£2.5m–£3.5m), £5,000 (£3.5m–£5m) and £7,500 (over £5m).
• It affects roughly 0.5% of homes, mostly in London and the South East.

3. Making Tax Digital — big change for landlords

This is the change most landlords have missed, and it has already begun. Making Tax Digital (MTD) for Income Tax changes how rental and self-employed income is recorded and reported to HMRC.

• From April 2026, anyone with gross income of £50,000 or more from property and/or self-employment must keep digital records and send HMRC quarterly updates using compatible software.
• The threshold drops to £30,000 in April 2027 and £20,000 in April 2028.
• "Gross income" means rent before expenses — so the threshold is reached more easily than people expect.

4. Tenants' rights — the Renters' Rights Act 2025

The biggest shake-up of the rental market in a decade. The headline changes are already in force; the rest roll out over the next few years.

• From 1 May 2026, Section 21 "no-fault" eviction is abolished, and all fixed-term tenancies became open-ended periodic tenancies (a tenant can leave with 2 months' notice).
• Rent can rise only once a year (via Section 13), with a right to challenge at tribunal.
• A Private Rented Sector Database begins a regional roll-out from late 2026, with full launch in 2027.
• The Landlord Ombudsman is expected to become mandatory in 2028.
• The Decent Homes Standard is set to apply to private rentals from 2035; Awaab's Law extends to the sector on a timetable still under consultation.

5. EPC band C for rented homes by 2030

An EPC (Energy Performance Certificate) rates a home's energy efficiency from A to G, and it decides whether a property can be let at all.

• A rented home must currently be at least band E.
• On 21 January 2026 the government confirmed all privately rented homes in England and Wales must reach EPC band C by 1 October 2030 (the earlier 2028 date for new tenancies was dropped).

6. Leasehold reform — ground rents and commonhold

If you own or are buying a leasehold flat, big reforms are moving forward. The Leasehold and Freehold Reform Act 2024 is still being phased in, and on 27 January 2026 the government published the draft Commonhold and Leasehold Reform Bill.

• The draft Bill would ban most new leasehold flats and make commonhold the default for new flats.
• It proposes capping existing ground rents at £250 a year, reducing to a peppercorn (effectively zero) after 40 years.
• Reforms from the 2024 Act — cheaper, easier lease extensions and 990-year terms — continue to roll out.

7. Interest rates and mortgages

The cost of a mortgage tracks the Bank of England base rate and lender competition.

• The Bank of England base rate in June 2026 is 3.75%.
• Specific mortgage deals change constantly — treat any rate as illustrative, not a promise.

Quick reference

• Stamp Duty: unchanged in 2026; 0% to £125k; FTB 0% to £300k; +5% on a second home.
• Mansion tax: homes over £2m, 2026 valuations, charged from April 2028 (£2,500–£7,500/yr).
• Making Tax Digital: landlords earning £50k+ file quarterly from April 2026.
• Renting: Section 21 abolished May 2026; open-ended periodic tenancies.
• EPC: at least E now; band C for rentals from October 2030.
• Leasehold: draft Bill — £250 ground-rent cap, commonhold default.
• Rates: base rate 3.75% (June 2026).

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