Last updated: 8 October 2026 · Next review: April 2027
Short, direct answers to the questions landlords ask most often about costs, tax and compliance in England. Each answer links to a full guide with sources. Figures were checked on 8 October 2026.
General costs
How much does it cost to be a landlord?
It depends mostly on your mortgage. Excluding the mortgage, a typical single-let house carries a few thousand pounds a year in insurance, certificates and maintenance, plus voids and any agent fees. Industry research from Pegasus Insight (reported January 2026) found running costs averaged about 25% of gross rental income for non-HMO landlords and 45% for HMO landlords. See the true cost of being a landlord or use the calculator.
What are the hidden costs of being a landlord?
Void periods, maintenance spikes, certificate renewals and remedial work, agent renewal fees, the restriction on mortgage interest relief, new registration fees and penalties for missed deadlines.
How long are rental properties empty between tenants?
Rushbrook research reported by The Intermediary found the average void lasted 23.2 days in 2026, costing about £1,097 in lost rent — up almost 58% since 2023.
How much should I budget for maintenance?
A common rule of thumb is 1% of the property’s value a year, more for older properties. See landlord maintenance costs.
How much do letting agents charge?
Purplebricks’ guide gives typical ranges of 50–100% of the first month’s rent for tenant-find only and 10–20% of monthly rent plus VAT for full management.
Insurance
Do I need landlord insurance?
It isn’t a legal requirement, but standard home insurance usually won’t cover a let property, and most buy-to-let lenders require buildings cover. See landlord vs home insurance.
How much is landlord insurance?
The median was about £253–£288 a year in 2026 (Simply Business customer data via MoneySuperMarket; Alan Boswell Group data). Location can move it from under £100 to over £1,400. See landlord insurance cost.
Is rent guarantee insurance worth it?
It costs roughly £90–£220 a year based on Simply Business figures, and it’s worth more since the Renters’ Rights Act raised the rent-arrears threshold for possession to three months. See rent guarantee insurance.
Compliance and certificates
How often do landlords need a gas safety certificate?
Every 12 months, by a Gas Safe registered engineer. Give tenants a copy within 28 days and keep records for 2 years. Typical cost: £60–£120 for a property with one boiler. See certificate costs.
How often do landlords need an EICR?
At least every 5 years. Typical cost for a 2–3 bed house: £150–£250. Penalties reach £40,000.
What EPC rating does a rental property need?
At least Band E. EPC Band C by 2030 is a government aim, not yet law. See EPC rules for landlords.
Do landlords need to register?
Yes, from the PRS database rollout starting 15 December 2026. Every let property must be registered by 14 November 2027, at £65 per property per year, according to Osborne Clarke. See the regulation timeline.
Do I need an HMO licence?
Yes, if you let to 5 or more people from more than one household who share facilities. Your council may also license smaller HMOs. Fees vary by council. See HMO licence cost.
The Renters’ Rights Act
Can landlords still use Section 21?
No. Section 21 was abolished on 1 May 2026. You need a legal ground under Section 8. See our Renters’ Rights Act guide.
How often can I increase the rent?
Once a year, using the Section 13 process (Form 4A) with at least two months’ notice.
Can landlords ask for rent in advance?
Not before the tenancy is agreed. After it’s agreed, you can ask for up to one month’s rent up front for tenancies from 1 May 2026. See deposit and rent-in-advance rules.
How much deposit can I take?
Five weeks’ rent if annual rent is under £50,000; six weeks’ if it’s £50,000 or more. Protect it within 30 days.
Can I refuse tenants on benefits or with children?
Not as a blanket rule. The Renters’ Rights Act makes that discrimination unlawful. You can still carry out proper referencing and affordability checks.
Can I refuse a tenant’s pet?
Only with a valid reason, and the NRLA says you must respond to a request within 28 days.
Tax and Making Tax Digital
Does Making Tax Digital apply to landlords?
Yes, if your gross property and self-employment income is over £50,000 (from April 2026), £30,000 (April 2027) or £20,000 (April 2028). See MTD for landlords and the MTD checklist.
What are the MTD penalties?
One point per missed deadline and a £200 penalty at four points. Late payment penalties are 3% at day 15 and day 30 in 2026–27, rising to 4% from 2027–28, plus 10% a year from day 31. See MTD penalties.
What can landlords claim as expenses?
GOV.UK lists costs such as repairs and maintenance, insurance, letting agent and accountant fees, utilities you pay, ground rent and service charges, and advertising. Capital improvements aren’t deductible against rental income.
Can I claim mortgage interest?
Not as a normal expense. For individual landlords, relief is restricted to a 20% basic-rate tax credit.
Do I pay extra Stamp Duty on a buy-to-let?
Usually yes — an extra 5 percentage points on each band if you already own a home (England and Northern Ireland).
Software
How much does landlord software cost?
From free (for up to three properties on some apps) to around £12–£40 a month for small and mid-sized portfolios, and £80+ a month for larger property management platforms. See software prices and how to choose.
Letting in practice
How much is the new landlord database fee?
£65 per property per year, according to Osborne Clarke’s September 2026 briefing, with registration rolling out region by region from 15 December 2026.
How long must I keep gas safety records?
At least 2 years, according to HSE.
Do I need to give my tenant an EPC?
Yes. You must provide a valid EPC, rated E or above, when you let the property.
What rental yield should I expect after costs?
It varies by property and area. As an illustration, a £220,000 property let at £1,200 a month has a gross yield of 6.5%, but about 5.0% after voids and running costs, before mortgage and tax. Try our calculator.
Can I claim the cost of safety certificates against tax?
Generally yes — certificates and most remedial repairs are allowable expenses, while major upgrades may be treated as capital improvements. See certificate costs.
Is self-managing cheaper than using an agent?
In cash terms, usually yes: full management at 10–20% of rent plus VAT is a significant cost. But you take on every compliance deadline and tenant issue yourself. See the true cost of being a landlord.
About these answers
We summarise official guidance and published data, and link to the source on every full guide. We don’t sell insurance or software, and we don’t take commission. Read our methodology.
Sources
- GOV.UK — Renters’ Rights Act: an overview for landlords
- GOV.UK — Making Tax Digital for Income Tax
- GOV.UK — Penalties for MTD
- GOV.UK — Working out your rental income
- GOV.UK — Minimum energy efficiency standard
- GOV.UK — HMO licence
- GOV.UK — Deposit protection
- HSE — Gas safety for landlords
- NRLA — Key dates
- Osborne Clarke — PRS database
- MoneySuperMarket — Landlord insurance
- The Intermediary — Void periods
- Purplebricks — Letting agent fees
General information, not legal, tax or financial advice. Last checked: 8 October 2026.
Related guides
- Landlord Safety Certificate Costs in 2026: Gas Safety, EICR and EPC
- Landlord Maintenance Costs in the UK: How Much Should You Budget?
- HMO Licence Cost: When You Need One, What It Costs and the Hidden Extras
- The True Cost of Being a Landlord in the UK (2026)
- Making Tax Digital for Landlords: Does It Apply to You, and When?
Figures are published examples, estimates and averages, not quotes. Rules change: check the linked official source before you act.