Landlords operating in London’s prime rental markets face a series of regulatory and tax changes before the end of 2024, with compliance requirements spanning property registration, energy performance standards and revised tax structures.
The Renters’ Rights Act, which came into force in May, abolished section 21 evictions and converted assured shorthold tenancies into rolling periodic agreements. However, the legislation does not apply uniformly across the prime sector. Properties with annual rents exceeding £100,000 and those let to companies rather than individuals remain outside the assured regime and can operate under common law terms.
Recent market data indicates pricing behaviour around this threshold. Prime central London rents below £100,000 increased 0.7 per cent in the most recent quarter, compared with 0.1 per cent for properties above that level. The £100,000 exemption threshold was set by statutory instrument in 2010, having previously stood at £25,000, and can be adjusted without new primary legislation.
National registration system launches
The national rental property register opens on 15 December, beginning with the West Midlands before rolling out regionally. London’s registration window runs from 15 July 2027 to 14 October 2027. The annual fee is £65 per property. Guidance issued for agents confirms that registration responsibility sits with landlords even where agents manage properties, and applies to assured tenancies only.
Landlords holding properties across multiple regions can register all units from 15 December. Registration requires ownership details, compliance certificates and tenancy information. False or lapsed entries can result in rent repayment orders.
Energy performance requirements
Privately rented homes in England and Wales must reach EPC band C equivalent by 1 October 2030, up from the current band E minimum. A spending cap of £10,000 per property applies, or 10 per cent of property value if lower.
Properties achieving band C on certificates issued before October 2029 will be treated as compliant until certificate expiry, even after new EPC methodology is introduced. For period properties and mansion flats in conservation areas, secondary glazing requires consent and listed building status limits insulation options.
Tax changes from April 2027
From 6 April 2027, property income tax rates will rise by four percentage points to 24 per cent, 44 per cent and 49 per cent for landlords holding properties in personal names. Company-owned property is not affected by this increase.
The High Value Council Tax Surcharge takes effect from April 2028 on homes in England valued at £2 million or more. Annual charges range from £2,500 to £7,500 across four bands. The surcharge falls on property owners rather than occupiers, meaning tenants currently paying council tax will not cover this cost.
The Valuation Office is setting 2026 property values to determine surcharge bands, with these valuations remaining in place until the next revaluation in five years. Making Tax Digital requirements are already in force for landlords with qualifying income above £50,000, with quarterly updates required. HMRC is not issuing penalty points for late updates this tax year, but the 31 January self-assessment deadline remains unchanged.
Yasmin Ulhaq of Glenfield Property Management said: “In the prime market, value is rarely lost to one big decision; it goes in the gap between knowing a change is coming and doing something about it.”
The concentration of regulatory changes within a compressed timeframe presents operational challenges for landlords managing portfolios in prime central London locations including Chelsea, Mayfair and Knightsbridge, where property values and rental yields place many assets above exemption thresholds.
