A look ahead to 2026: what Welsh landlords should expect
By Nikki Lewis, Director of Operations and Compliance Expert
As we head into 2026, there’s no single issue set to dominate the year for landlords in Wales. That’s in contrast to England, where the implementation of the Renters’ Rights Act will understandably command most of the attention.
For Welsh landlords, the year ahead looks more about awareness and planning than reacting to one major reform. Experts are already pointing to a slowdown in rental growth, EPC reform is expected to bring long-awaited clarity that will prompt some landlords to consider what they need to do to ensure they can continue letting their properties, and a number of quieter regulatory and administrative changes are beginning to take shape.
None of this signals upheaval, but it does reinforce the importance of staying informed and keeping an eye on developments as they emerge. Below, I’ve set out a few of the areas I think landlords in Wales ought to be aware of as the year unfolds.
Rental growth: resetting expectations
One of the clearest shifts I expect landlords to feel in 2026 is a cooling in rental growth. Not falling rents – but a move away from the sharp uplifts many have come to expect.
Recent data from Zoopla points to the weakest rental market conditions in six years. Tenant demand has dropped by around 20% year-on-year, while the supply of homes available to let has risen by roughly 15%. That change in balance matters.
Zoopla say two forces are driving this. The first is migration. Office for National Statistics estimates suggest net migration fell by around 78% between June 2023 and June 2025. Fewer new arrivals means less pressure at the lower and mid ends of the rental market in particular.
The second is home ownership. Falling mortgage rates and more generous lending criteria have brought first-time buyers back in force. Research from Hamptons shows that a record 33% of all homes sold in Britain during 2025 went to first-time buyers – nearly double the proportion seen a decade ago.
For landlords, this doesn’t mean panic. But it does mean realism. Rent increases will need to be more defensible, well-timed, and grounded in local evidence rather than expectation – a theme that carries through to my next area landlords should be paying close attention to in 2026…
Rent challenges: a sign of things to come?
Another development I’m watching closely is how quickly Welsh Government moves to expand tenants’ rights to challenge rent increases.
At present, only tenants whose occupation began before the Renting Homes (Wales) Act (RHWA) came into force in December 2022 can formally refer rent increases to the Residential Property Tribunal. However, a recent Rent Assessment Committee decision noted that Welsh Government is actively considering extending this right to tenants who moved in after RHWA took effect.
If that happens, rent setting in Wales could begin to look more like a regulated process than a commercial negotiation. Landlords will need to ensure increases are clearly evidence-based and procedurally robust, as it costs tenants nothing but a little bit of their time to formally challenge an increase.
What landlords worry about:
“Will my rent increase get challenged – and if it is, am I exposed?”
CPS Homes’ role:
This is where evidence and process really matter. We don’t simply pass on market headlines – we benchmark rents against live local data, document the rationale for increases, and ensure notices are served correctly.
If an increase is challenged, that paper trail becomes critical because the Residential Property Tribunal will want to see it. Our role is to make sure rent reviews are not just commercially sensible, but defensible if scrutinised by a tribunal.
New minimum energy efficiency standards: clarity at last – and new risks
The long wait for new minimum energy efficiency standards and EPC reform in general should finally come to an end in 2026. I expect the Government to publish its response to the 2025 Minimum Energy Efficiency Standards consultation, giving landlords much-needed clarity on both timelines and expectations.
What’s particularly important is that EPCs themselves are likely to change, not just the minimum standards attached to them. Rather than a single headline rating, we’re likely to see multiple headline metrics, with a revised scoring methodology underneath. We’ve published a detailed EPC reform FAQs page, which I’d recommend reading if you’re wondering what the Government are angling for.
As the new assessment model begins to replace the old one, some properties will see their ratings improve or worsen without any physical changes having been made. The methodology is shifting decisively towards electrification – favouring heat pumps and low-carbon systems – and away from gas.
Once announced, it’ll push landlords firmly into a planning phase: reviewing portfolios against new metrics, identifying exposure, and deciding how – and when – to invest.
What landlords worry about:
“Will I suddenly be non-compliant without realising – or will I be left needing to do a lot of work at short notice?”
CPS Homes’ role:
We go beyond just flagging future standards. We’re already reviewing EPC exposure across portfolios, identifying properties most likely to be affected by scoring changes, and helping landlords prioritise works sensibly rather than reactively.
The aim is to avoid rushed spending, void periods, or last-minute compliance problems once new standards are confirmed.
Wales and the Renters’ Rights Act: limited scope, but important changes
Only a tiny fraction of the Renters’ Rights Act applies to Wales, so landlords this side of the border won’t have to deal with the mountain of changes coming England’s way from 1st May. It’s our turn to sit back and watch, as they did with us when we contended with the introduction of Renting Homes (Wales) Act three years ago. Landlords here can be safe in the knowledge that fixed-term tenancies remain, ‘no-fault’ evictions continue to be possible, and Awaab’s Law does not apply.
However, one part of the Act does extend into Wales – and it’s one landlords shouldn’t overlook, especially if they source their own tenants.
It will become unlawful to discriminate against prospective tenants because they have children or receive benefits.
In practical terms, landlords and agents cannot refuse enquiries, viewings, or tenancies on those grounds. Any existing clauses in mortgages, insurance policies (once renewed), superior leases or contracts that attempt to restrict letting to families or benefit recipients will become ineffective.
Defences are extremely limited. What concerns me most is not deliberate discrimination, but unintended bias. To help, we’ve produced a full, detailed guide on these discrimination changes.
What landlords often think:
“If I use an agent, this isn’t my problem.”
What’s actually true:
It is still their problem. This is an area where landlords can be exposed without realising it. Even where an agent is instructed, liability does not automatically disappear. Decisions made during marketing, enquiries, or viewings can still be attributed to the landlord.
CPS Homes’ role:
We’re reviewing marketing language, enquiry handling and applicant assessment processes to remove unintended bias and ensure decisions are evidence-based and lawful. That protects not just tenants, but landlords – because discrimination claims are about process as much as intent.
Enforcement powers: a warning sign for the future
One of the least discussed – but potentially most significant – parts of the Renters’ Rights Act is the new statutory duty placed on English local authorities to enforce landlord legislation.
As of December 2025, councils in England are legally required to investigate breaches. To be exact, the legislation reads: “It is the duty of every local housing authority to enforce the landlord legislation in its area”.
This is backed by new Government guidance setting out typical fine levels, with proceeds recycled back into the authority.
Given the funding pressures local authorities face, this creates a clear incentive to prioritise landlord compliance. While Wales has not yet mirrored this duty, it’s impossible to ignore the direction of travel. I’m sure Welsh authorities would like the opportunity to generate more funds, but we also know how under resourced they are, so would they want the duty? It’s one to keep an eye on.
What landlords worry about:
“Will councils suddenly start targeting us?”
CPS Homes’ role:
One of the key ways we support landlords is by maintaining consistent records – from safety certificates to notices and correspondence – so that if a local authority does make enquiries, responses are clear, complete and timely. Increased enforcement only becomes a problem where compliance is patchy or poorly documented.
A quiet local shift: Cardiff’s additional HMO licensing
One change that’s flown under the radar is the end of Cardiff Council’s Additional HMO Licensing scheme for Plasnewydd (Roath), which expired on 31st December 2025.
Additional licensing schemes can only run for five years at a time, and while no formal decision has yet been made on redeclaration, I expect the scheme will return following consultation at some point.
In the meantime, this is a small but welcome breathing space for landlords who thought they might need to renew a licence imminently. All existing licences remain valid until their stated expiry date, and all licence conditions must still be complied with.
It’s also important to be clear: mandatory HMO licensing still applies in the area. Any property with three or more storeys and five or more unrelated occupants forming more than one household still requires a licence, regardless of location.
Making Tax Digital: administrative pressure ramps up
April 2026 marks the first major wave of Making Tax Digital for income tax – and for many landlords, this will feel like a significant shift.
From 6th April, if you are a landlord or self-employed with annual qualifying income over £50,000, you will need to begin quarterly digital submissions to HMRC, with the first filing due in August. This isn’t optional, and it won’t be possible without commercial software or an accountant. HMRC produced a step-by-step guide to follow.
The key point here is that the threshold is based on gross income, not profit. Landlords with relatively modest net returns after costs may still be caught.
This first phase is expected to affect around 780,000 people, with further expansion in 2027 and 2028 to include those earning as little as £20,000. Despite this, awareness remains low. An NRLA study found around a quarter of landlords were not really aware of the changes, even though two-thirds expect to be affected by 2028.
What landlords worry about:
“This is admin I don’t have time for.”
CPS Homes’ role:
While tax compliance itself sits with landlords and their advisers, we’re conscious that Making Tax Digital increases the importance of accurate, timely records. For managed landlords, we ensure rental statements and expenditure records are clear, consistent and exportable, reducing friction when quarterly reporting begins.
Final thoughts
2026 will not be defined by a single piece of legislation, but by execution across many fronts.
Slower rental growth, EPC reform, digital tax reporting, evolving discrimination rules and the steady expansion of enforcement powers all point in the same direction: letting is becoming more professional, more scrutinised, and less forgiving of error.
Our role at CPS Homes is to take that complexity off landlords’ plates – translating change into day-to-day decisions, embedding compliant processes, and maintaining the evidence needed to protect our clients if decisions are challenged. The landlords who succeed won’t be those who react fastest to headlines, but those who are supported to plan carefully, document properly, and stay ahead of compliance before it becomes urgent.
The information contained within this article was correct at the date of publishing and is not guaranteed to remain correct in the present day.
