Agents Told: Make Compliance a Priority Ahead of Major Rental Sector Changes

Why This Matters to London Landlords and Agents

The rental sector is preparing for a wave of legislative changes culminating in the Renters Rights Act and other reforms set to take effect from May 2026. These changes will impact multiple compliance areas: rent reform, stricter requirements on disclosing material information to tenants, elevated energy efficiency standards, and reinforced anti-money laundering (AML) obligations.

Propertymark, the UK’s leading professional body for letting agents, has issued a clear message: compliance must become a top priority immediately. For landlords and agents alike, ignoring these updates risks significant fines, reputational damage, and operational disruption.

Key Compliance Areas and Their Implications

Rent Reform Regulations

From May 2026, new rent reform rules will introduce tighter controls on rent increases and tenancy terms. Landlords must familiarise themselves with the detailed provisions once published and ensure tenancy agreements and rent review procedures comply.

For portfolio landlords and agents managing multiple tenancies, implementing a centrally tracked rent review system now can prevent non-compliance and support transparent dealings with tenants.

Material Information Disclosure

Updated regulations will expand what agents and landlords must disclose to prospective tenants, covering property condition, legal restrictions, and tenant rights. Failure to provide accurate and comprehensive information could lead to enforcement actions.

Single-unit landlords should review their pre-tenancy checklists and information packs, while HMOs and portfolios may need to standardise disclosure protocols across properties.

Enhanced Energy Efficiency Standards

The government continues to tighten Minimum Energy Efficiency Standards (MEES). From 2026, landlords will face stricter Energy Performance Certificate (EPC) rating requirements, potentially necessitating costly upgrades.

Landlords must audit their properties’ current EPC ratings and plan capital improvements accordingly. Agents should advise clients proactively to avoid last-minute compliance crises.

Anti-Money Laundering Obligations

AML regulations are being reinforced alongside updated Data Protection and GDPR requirements. Agents and landlords must maintain rigorous client verification, record-keeping, and reporting practices.

Propertymark highlights the need for updated staff training and system reviews to ensure adherence to the Digital Markets, Competition and Consumer Act 2024 provisions impacting client money protection (CMP) and data handling.

Different Landlord Profiles: Tailoring Your Compliance Approach

• Single-Unit Landlords: Focus on ensuring tenancy agreements and disclosures meet new standards; review property EPC ratings individually.
• HMO Landlords: Implement consistent compliance workflows across multiple occupants; coordinate energy efficiency works to minimise tenant disruption.
• Portfolio Landlords: Develop centralised compliance management systems; schedule regular audits and staff training.
• Accidental Landlords: Seek professional advice to navigate complex new rules and consider engaging specialist agents for compliance support.

Practical Next Steps for Immediate Action

1. Book a Propertymark Compliance Audit: This will provide a detailed snapshot of current compliance status and highlight gaps against forthcoming legislative requirements.
2. Review and Update Policies: Align AML, CMP, data protection, and record-keeping protocols with the latest regulatory frameworks.
3. Staff Training: Schedule refresher courses focusing on AML, disclosure obligations, and energy efficiency standards.
4. Plan Property Upgrades: Commission EPC assessments and budget for necessary improvements ahead of MEES changes.
5. Monitor Legislative Developments: Keep abreast of government consultations and statutory instruments relating to the Renters Rights Act and associated rules.

How Rentals & Sales Can Support You

Our team specialises in guiding landlords and agents through complex compliance landscapes. We offer:

• Comprehensive portfolio reviews identifying compliance risks
• Tailored compliance audits aligned with Propertymark standards
• Energy efficiency advisory services and upgrade planning
• AML and data protection compliance audits and staff training
• Pricing strategy consultations factoring in rent reform impacts

Engaging with us early ensures you are not caught off guard by these sweeping changes and positions your business for sustainable success.

Disclaimer: This article is for informational purposes and does not constitute legal advice. Landlords and agents should consult qualified professionals to ensure full compliance with evolving legislation.