As 2026 begins, several important developments have emerged that UK landlords and letting agents should note. These include updates to the Tenant Fees Act guidance, government funding for tenant legal support, a record number of new licensing schemes, and rising running costs impacting rental incomes. Understanding these changes is crucial for effective property management and compliance in the current rental market.

Updated Guidance on Tenant Fees Act and Council Tax Responsibilities

The government has revised its official guidance for landlords and letting agents regarding allowable fees and the responsibility for council tax and TV licences. Notably, council tax and TV licences are now explicitly excluded from the category of utilities under the Tenant Fees Act. Responsibility for council tax depends on the property type and occupancy status, varying between landlords and tenants. For example, liability differs between single occupancy properties and Houses in Multiple Occupation (HMOs).

Regarding TV licences, tenants are generally responsible unless the landlord provides certain types of shared accommodation, in which case the landlord may hold responsibility. This clarification helps landlords and agents accurately allocate costs and avoid potential disputes. The updated guidance is available on the government website for reference.

£20 Million Government Funding for Tenant Legal Support

The government has announced a £20 million fund aimed at providing vulnerable tenants with legal advice and support to prevent eviction proceedings reaching court. This initiative seeks to address housing insecurity by offering early assistance and reducing the burden on the court system.

Deputy Prime Minister David Lammy stated, “This funding will ensure that essential legal support and information is available to those who need it most and will put the sector on a sustainable footing, as part of our Plan for Change.”

Propertymark has welcomed this funding but emphasised the need for further action to tackle court backlogs, under-resourcing, and delays. They noted, “Delays, complexity and under-resourcing within the courts system can be damaging for tenants, landlords and agents alike, often prolonging disputes and increasing costs for all parties.”

Record Number of New Licensing Schemes Introduced in 2025

Data from Kamma, a geospatial technology company, reveals that 2025 saw the highest number of new selective and additional licensing schemes introduced by councils across England. There were 22 new additional licensing schemes and 27 selective licensing schemes, surpassing the 23 schemes introduced in 2024.

This trend is expected to continue, especially as councils no longer require government approval to implement such schemes. The government has clarified that these licensing schemes will not be replaced by the forthcoming Private Rented Sector (PRS) Database, which is due later in 2026. According to the Housing Minister, the database and licensing schemes “serve different purposes” and will operate alongside each other.

Rising Running Costs Significantly Impact Rental Income

Landlords are facing increasing financial pressures due to rising maintenance and running costs. According to a report by Pegasus Insight, HMO landlords now spend nearly 45% of their rental income on these costs, while non-HMO landlords allocate around 25%. The average annual expenditure has reached £19,604 for private rental landlords and £35,720 for HMO landlords as of the third quarter of 2025.

Despite this increased investment in property upkeep, tenants are not necessarily experiencing an improved rental experience. Pegasus Insight commented, “Our wider research shows that landlords are investing more than ever to keep properties safe, compliant and habitable, yet maintenance remains a pressure point in the rental relationship.”

Additional costs such as insurance premiums, professional fees, and servicing contracts have also risen substantially, leaving limited scope for landlords to fund major repairs or upgrades. This situation underscores the importance of careful financial planning and budgeting for landlords managing rental properties.

Additional News Snippets for Landlords

• Local housing allowance changes for 2026 and their implications for landlords.
• Charity warnings about the growing number of over-60s facing homelessness.
• Newham Council’s housing service receiving a ‘some way to go’ assessment after a C4 grading.
• Clarification that the new tax reporting regime will not impose additional burdens on landlords.

Looking Ahead: TLA’s Trusted Partners Hub Launch

The Tenant Liaison Association (TLA) is set to launch a new Trusted Partners Hub in the first quarter of 2026. This platform will feature verified and approved service providers to support landlords, tenants, and property management businesses. The hub will include legal, trades, insurance, financial, mortgage, tenant screening, and other relevant service providers.

Service providers interested in joining the Trusted Partners Hub are invited to register their interest via the TLA website.

These updates highlight the evolving landscape of landlord responsibilities and the importance of staying informed on regulatory changes, cost pressures, and available support mechanisms. Keeping abreast of such developments will help landlords and agents manage their properties effectively and maintain compliance in 2026 and beyond.