To rent out your house in England you need to: get your mortgage lender's permission, make the property safe (an annual gas safety check, an electrical inspection at least every 5 years, smoke and carbon monoxide alarms), have an EPC rated E or above, check your tenant's right to rent, protect any deposit in a government scheme within 30 days, and give the tenant the required information. Since 1 May 2026 new private tenancies are assured periodic tenancies under the Renters' Rights Act. For tax, you report the profit through Self Assessment (registering by 5 October after the tax year if you do not already file), and landlords with qualifying income over £50,000 must now use Making Tax Digital.
Step 1: before you advertise
- Mortgage. If the property has a mortgage, you must get your lender's permission to let it;
- Type of letting. Check that the tenancy will be an assured periodic tenancy: it is if you do not live there, it is the tenant's main home and the rent is between £250 a year (£1,000 in London) and £100,000. Holiday lets and lodgers in your own home follow different rules;
- Agent or self-manage. Decide whether to use a letting agent (tenant-find only or full management) or do it yourself. Agent fees are an allowable expense for tax.
Step 2: make the property safe and compliant
| Requirement | What the law requires |
|---|---|
| Gas safety | Each gas appliance and flue checked at intervals of not more than 12 months |
| Electrical safety | Installation inspected and tested by a qualified person before the tenancy starts and at least every 5 years |
| Energy Performance Certificate | An EPC must be provided to the tenant; you cannot let, or continue to let, a property rated F or G unless it is improved to E or an exemption is registered |
| Fire safety | Smoke alarms and carbon monoxide alarms fitted and tested |
| Right to rent | Check your tenant's immigration right to rent (England) |
| HMO | A licence is required if 5 or more people forming more than one household live there; councils can license smaller HMOs |
Councils can also inspect any rented home under the Housing Health and Safety Rating System, and you are normally responsible for repairs to the structure, sanitary fittings, and heating and hot water systems.
Step 3: find a tenant and set up the tenancy
The Renters' Rights Act 2025 changed the rules from 1 May 2026. In practice:
- Advertise a fixed rent. You must state an asking rent and cannot accept offers above it;
- No blanket bans. You cannot refuse tenants because they have children or receive benefits, and you must consider requests to keep a pet;
- Rolling tenancy. The tenancy is an assured periodic tenancy with no end date. You will need a legal ground to end it, and you cannot use the selling or moving-in grounds in the first 12 months;
- Rent timing. You cannot take rent before the tenancy agreement is signed;
- Deposit. Capped at 5 weeks' rent where the annual rent is under £50,000, and protected in an approved scheme within 30 days of receipt;
- Written information. Give the tenant the required written information about the key terms of the tenancy.
Our Renters' Rights Act guide covers possession grounds and rent increases in more detail.
Step 4: tax on the rent
You pay income tax on your rental profit: rent less allowable expenses. Allowable expenses include letting agent fees, accountants' fees, insurance, repairs and maintenance (but not improvements), council tax and utilities you pay, ground rent and service charges, and replacement of furniture and appliances under replacement of domestic items relief.
Mortgage interest is treated differently. Individual landlords cannot deduct it from rental income. Instead they get a tax reduction at the basic rate, which is 20% for 2026/27. From 2027/28 Finance Act 2026 (sections 6 and 7) taxes property income at its own rates of 22%, 42% and 47%, and the mortgage interest credit is given at the property basic rate of 22%. The Scottish Parliament and Senedd Cymru can set property rates for their own taxpayers.
Worked example (illustration, 2026/27 rates). A higher-rate taxpayer lets a house for £1,200 a month (£14,400 a year). Agent fees are £1,728, insurance £400 and repairs £800, so the profit before interest is £11,472. Tax at 40% is £4,588.80. Mortgage interest of £6,000 gives a tax reduction of 20% × £6,000 = £1,200, so the tax due is about £3,388.80. A basic-rate taxpayer with the same figures would pay 20% × £11,472 − £1,200 = £1,094.40.
If gross property income is £1,000 or less, the property allowance means it is tax-free. Otherwise you must report it through Self Assessment if it is more than £10,000 before expenses or £2,500 after expenses; between £1,000 and £2,500 you can contact HMRC instead. See our guides to tax on rental income and the property income allowance.
Step 5: Making Tax Digital and records
Making Tax Digital for Income Tax applies according to qualifying income, which is gross rents plus any self-employment turnover:
- Over £50,000 in 2024/25. You should have started from 6 April 2026;
- Over £30,000 in 2025/26. You start from 6 April 2027;
- Over £20,000 in 2026/27. You start from 6 April 2028.
Keep digital records of every rent receipt and expense from the first month, so you are ready either way. Our MTD for landlords guide explains quarterly updates.
What happens when you sell
If the house was your main home before you let it, private residence relief usually still covers the years you lived there and the last 9 months of ownership. The gain for the letting years is generally taxable, and a UK residential property gain must be reported and the tax paid within 60 days of completion. Selling with tenants in place also needs planning under the new possession rules.
Sources: GOV.UK: Renting out your property; Gas Safety (Installation and Use) Regulations 1998, reg. 36; Electrical Safety Standards Regulations 2020, reg. 3; Housing Act 2004, s.213; ITTOIA 2005, s.274AA; Finance Act 2026, s.7; GOV.UK: When you need to use Making Tax Digital for Income Tax.
If you are letting a property for the first time, our accountants for landlords can set up your records and file your Self Assessment return.