Compliance Clamps and Rental Caps: UK Rental Market Update (2 October 2025)
Compliance is tightening, revenues are shifting, and tenants are under strain. This week’s update shows why landlords and agents must embrace proptech to manage risk and protect income.
Regulation and enforcement are tightening across the rental sector. HMRC is stepping up tax probes into landlords, while the Renters’ Rights Bill could remove a major revenue stream for agents, making robust financial and legal processes more important than ever. With tenants under strain from rising costs and rent caps now in place in Scotland, the risks of arrears and disputes are growing. Proptech tools that automate compliance, manage documentation and track safety standards are becoming essential for staying on top of obligations and protecting income.
Agents warn Renters’ Rights Bill could hit revenues by a quarter
A new industry survey suggests moving to periodic tenancies could remove a key renewals income stream for letting agents (c.27% of revenue on average; 37% in London), forcing business-model changes as reforms advance. Property Reporter
Taylor Wimpey flags sharp slowdown in reservations
Over the nine weeks to 28 September, the builder’s net private sales rate fell to 0.65 per outlet per week (0.70 a year earlier), citing affordability pressures and uncertainty over potential stamp-duty changes in the November Budget. Order book value edged down to £2.12bn. Reuters
Scotland passes Housing Bill with CPI-linked rent cap and tenant protections
Holyrood approved legislation capping rent rises at CPI+1% (max 6%) while tightening standards on damp and mould, with carve-outs for large investor-funded schemes to keep capital flowing. Implementation details will shape investor appetite for BTR north of the border. Financial Times
Compliance spotlight: landlord tax investigations surge
HMRC recovered a record £107m from landlord probes in 2024/25, more than double three years ago, with many cases tied to expense errors and relief mis-use, a signal that PRS financial compliance is under closer scrutiny. The Guardian
Landlords & letting agents: Landlords need stronger tax discipline and compliance systems; agents must adapt revenue models and lean on proptech to stay competitive.
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