Landlords who fail to prepare for sweeping new rental reforms could be heading for a compliance crisis in 2026, property investment firm Sourced has warned.
The Renters’ Rights Act 2025, designed to raise standards across the private rented sector, will be rolled out in stages next year once the Government confirms implementation dates.
In the meantime, many landlords risk being caught out by outdated practices and misinformation.
Sourced says that without urgent action, the new regulations could expose landlords to heavy penalties, reputational damage, and legal challenges – particularly as enforcement powers for local authorities strengthen.
NEW WARNING
The warning follows a series of high-profile cases involving landlords who fell foul of existing rental regulations, highlighting how even experienced investors can misstep in an increasingly complex legal landscape.
Stephen Moss (main picture), Chief Executive and Founder of Sourced, says: “Sourced predicts that if landlords fail to take action, the Renters’ Rights Act could prove to be a ticking timebomb in terms of compliance.
“More high-profile individuals are likely to hit the headlines for non-compliance in the same way that Chancellor Rachel Reeves and former Deputy Prime Minister Angela Rayner did.
“Buy-to-let investors and landlords, no matter what their circumstances or portfolio size, need to be proactive and engage a professional, reputable agent who will not only reliably advise them of changes to the law but also check compliance, and ensure landlords remain on the right side of the law.
“Simply claiming ignorance of tenancy issues is unlikely to protect landlords from the costly and embarrassing implications of non-compliance in the future.
“What happened to Chancellor Rachel Reeves, who inadvertently rented out her family home without obtaining the necessary HMO license, is likely to be the tip of a compliance iceberg.”
RAISING THE BAR
Sarah Byrne, Brand Manager at Sourced Living, adds: “The new Renters’ Rights Act raises the compliance bar even higher. For anyone managing rental property, there’s no margin for error, which is exactly where Sourced Living steps in.
“Our focus is on protecting landlords and tenants alike through full legal compliance and transparent processes.
“This isn’t the time for landlords to assume that what worked last year still applies today.
“The Renters’ Rights Act changes fundamental aspects of how tenancies are structured – from deposits and renewals to how rent is set. Our role is to make compliance simple and straightforward, so our landlords stay protected, and their tenants feel secure.”
