Your Equity Held Steady, Your Fix Costs More, and the Rules Changed in May

What is still provisional

No new figures landed this week and nothing we hold has been restated. The honest subject is therefore the state of the record itself.

9 reference periods remain provisional and can still be revised: 2025-09, 2025-10, 2025-11, 2025-12, 2026-01, 2026-02, 2026-03, 2026-04, 2026-05. UK House Price Index estimates carry a 12-month provisional window (HM Land Registry guidance, updated 16 December 2025; ONS, 17 June 2026), during which figures are restated as more transactions register.

The next window closes on 2026-09-01, for 2025-09. Until then every figure in it is subject to change, including ones already quoted elsewhere as final.

Your property's value edged higher in May — but annual growth is slowing from last month's reading

The UK average house price stood at £271,295 in May 2026, a rise of 0.3% on the month and 2.7% on the year. That compares with £270,435 in April 2026, when the monthly gain was 0.5% and the annual rate was 3.9%. In other words, your property is still worth more than it was a year ago — but the pace of appreciation has eased month on month.

For you as a landlord, the number that matters most is not the headline figure but what it does to your loan-to-value ratio at your next remortgage. If prices in your area have grown broadly in line with the national picture, your equity buffer is modestly wider than it was twelve months ago, which can move you into a lower LTV band and improve the fix rates available to you. Check your lender's valuation methodology before you apply — automated valuations can lag the Land Registry index by several months, and the May 2026 data is the most recent published reading.

The average two-year fix is running 1.04 percentage points above Bank Rate — what that costs you

The Bank Rate stands at 3.75%, as of 13 August 2026. The Bank of England monthly average for a two-year fixed-rate mortgage was 4.79% in July 2026, and for a five-year fix it was 4.61% — both as of 31 July 2026. The average variable rate for the same period was 6.6%. These are not today's live market quotes; they are the Bank of England's published monthly averages for July.

SONIA stands at 3.731%, as of 12 August 2026 — a useful reference for the short-end rate environment your lender prices from. If you are rolling off a fix agreed two or three years ago, you are almost certainly moving onto a higher rate than the one you leave. On a typical buy-to-let balance the difference between a 2% fix from 2022 and today's 4.79% average represents a material monthly cash-flow shift. Run your own numbers now — before the fix expires — so you know whether the new payment remains covered by your rent income, and whether a five-year term at 4.61% offers better forward certainty than a shorter deal.

Northern regions led price growth in May; London fell — know your own area's direction

The sharpest annual house price growth in England in May 2026 was in the North East (+5.9% year-on-year, average price £163,933) and the North West (+5.8%, average price £219,506). Yorkshire and The Humber grew 4.3% to an average of £208,549. These are solid equity gains for anyone who owns in those areas — modest in absolute terms, but meaningful at remortgage where a higher valuation can shift your LTV band.

London was the clear outlier: prices fell 3.7% year-on-year to an average of £544,814, with a monthly decline of 1.2% in May alone. If you own in the capital, that is equity that has moved the wrong way — something to factor into your LTV calculation before you approach a lender. Elsewhere, the South East grew 1.2% to £381,311 and the South West 1.7% to £302,559. Scotland was up 4.4% to £195,543; Northern Ireland led all regions at 7.4%, averaging £198,015; Wales rose 4.2% to £215,252. All figures are for the period to May 2026.

New supply is falling well short of 300,000 a year — and that structural undersupply underpins your rental market

England's housing delivery continues to run far behind the government's 300,000-homes-a-year target. Building control data suggests completions for 2025–26 were the lowest since 2015–16, and independent projections put likely completions for 2026–27 at well under 200,000 — even as planning reforms make their way through Parliament. The Planning and Infrastructure Bill is intended to streamline approvals, but construction cost pressures and workforce shortages mean the pipeline between permission and finished home remains long.

For you as a landlord, persistent undersupply is the structural backdrop to your letting market. Fewer new homes in your area means tenant demand for existing stock holds up even as affordability is stretched. The Future Homes Standard, which requires new-build homes to be built to significantly higher energy efficiency targets, applies to new homes rather than the existing stock you own — but it does raise the long-run bar for what tenants will compare your property against. If your EPC rating lags behind newer stock in your area, that gap will widen over time. The EPC C deadline of 1 October 2030 is the binding obligation — see the Legislation Tracker section for what that requires and when.

Four obligations, four deadlines — here is what you must do and by when

Renters' Rights Act — in force now. The Renters' Rights Act 2025 commenced on 1 May 2026. From that date, Section 21 no longer exists for new lettings, and all existing assured and assured shorthold tenancies automatically converted to periodic assured tenancies. You must now use Form 4A to propose any rent increase — the old Form 4 became invalid on 1 May 2026. Rent increases are restricted to once every 12 months, and any contractual rent-review clause in a legacy tenancy agreement is void. If you have not yet served your Information Sheet and written statement of terms to existing tenants, the deadline for that was 31 May 2026 — if you missed it, act immediately. See our Renters' Rights Act guide for a checklist.

Making Tax Digital for landlords — April 2026 if your income exceeds £50,000. MTD for Income Tax requires landlords with gross annual income above £50,000 from property or self-employment to file quarterly digital returns from April 2026. If your income is between £30,000 and £50,000, your mandatory start date is April 2027. Income above £20,000 is drawn in from April 2028. HMRC has waived late-filing penalties for quarterly submissions during the 2026/27 tax year, but you are still expected to be signed up and filing. If you are above the £50,000 threshold and have not yet registered, do so now. Our MTD guide sets out the sign-up steps.

EPC C by 1 October 2030. The government's Warm Homes Plan, published on 21 January 2026, set a single compliance deadline: all privately rented homes in England and Wales must achieve at least EPC band C equivalent by 1 October 2030. The current minimum is EPC E. Approximately 52% of private rented homes in England will need upgrading. From October 2026 the government intends to replace the existing single-metric EPC with a multi-metric assessment — meaning your current certificate may not be the final measure of compliance. Book a current EPC assessment if yours is out of date, and get retrofit quotes while contractor availability is relatively high. Our EPC C guide covers eligible improvements and funding routes.

PRS Database registration — expected late 2026. The Renters' Rights Act 2025 creates a mandatory Private Rented Sector Database for England. Registration is expected to begin rolling out from late 2026, with wider implementation through 2027. You will need to register yourself as a landlord and each of your rental properties individually, and display your registration numbers on any advertisement or listing once the system is fully operational. Failure to register carries a civil penalty of up to £7,000, and an unregistered landlord cannot obtain a possession order (other than on anti-social behaviour grounds). Watch for the GOV.UK launch notification and register promptly. See our PRS Database guide for what to prepare now.

Your rent income is growing at 3.3% nationally — but the North East is running at nearly three times London's rate

The UK average monthly private rent reached £1,388 in June 2026, up 3.3% on the year and slightly ahead of the £1,383 recorded in May 2026. The annual rate has been broadly stable — May's figure was also 3.3% year-on-year. For most landlords, 3.3% annual rental growth is real income growth, though it needs to be weighed against the mortgage cost increases set out in the Mortgage Intelligence section above.

The regional picture tells a more varied story. Across England's nine regions, the spread between the fastest and slowest annual rent growth is 4.1 percentage points. The North East leads English regions at 6.3% annual growth, with average rents of £781 per month. London sits at the other end at 2.2% growth, despite commanding the highest average rent in England at £2,302 per month. The North West grew 5.4% to £961 per month, while the South West was up 4.7% to £1,237. The South East, where average rents are £1,415, grew just 2.3% — meaning landlords there are seeing some of the weakest real-terms rent growth in England.

If you are considering a rent increase on a periodic assured tenancy, the ONS data for your region is the benchmark a First-tier Tribunal will look at. Since 1 May 2026 you must use Form 4A with at least two months' advance notice, and increases are limited to once every 12 months. You can find the figures for your area at our rent guides by city and bedroom count, and the full Section 13 process is explained at our Section 13 guide.

Three things already in your ownership worth reviewing this quarter

Is your rent below what the ONS data shows for your area? The ONS figures published on 22 July 2026 give you region-level benchmarks. If your current rent is materially below the average for your area and bedroom count, you have the evidence base to issue a Section 13 notice using Form 4A — the lawful route for any increase from 1 May 2026. Because increases are now capped at once every 12 months, a below-market rent left unaddressed today is a year-long gap in your income. Check your area's figure at our rent guides before deciding whether to act.

Is a five-year fix worth considering over a two-year deal? The Bank of England monthly average for a five-year fix was 4.61% in July 2026, against 4.79% for a two-year fix. The five-year rate is 0.18 percentage points lower, and it locks your largest single cost for longer in a period when the rate environment remains uncertain. If your current fix is expiring in the next three to six months, it is worth modelling both terms against your current rent income before you accept the first renewal quote your lender offers.

Is your EPC upgrade cheaper to do now than in 2029? The 1 October 2030 EPC C deadline is four years away, but retrofit contractor capacity in England is already tightening as the deadline approaches. Landlords who act in 2026 or 2027 are likely to face lower quotes and shorter lead times than those who wait until 2029. If your property is currently rated D or E, get a retrofit assessment now. Some improvements — loft insulation, cavity wall fill, smart controls — are low-cost and can move an EPC band without major disruption. The EPC C guide sets out which measures qualify.

What to do this week

1. Check your Section 21 position. If you have not already confirmed that your tenancy agreements have been updated for the Renters' Rights Act, do it now. Section 21 notices are no longer valid for new proceedings from 1 May 2026, and any tenancy that was running before that date has automatically converted to a periodic assured tenancy. If you need to recover possession, the route is Section 8.

2. Serve your Information Sheet and written statement if you missed the 31 May 2026 deadline. Existing tenants should have received these within one month of the 1 May commencement date. If yours have not, serve them immediately — this is a compliance requirement, not optional.

3. Check your MTD status if your rental income exceeds £50,000. The Making Tax Digital obligation for landlords above the £50,000 threshold started in April 2026. If you are in scope and have not yet registered with HMRC and begun quarterly digital filing, do so without delay. HMRC has waived penalties for late quarterly submissions during 2026/27, but that waiver does not remove the obligation to register.

4. Get your EPC checked if it is D-rated or below. With the 1 October 2030 EPC C deadline confirmed and the EPC framework itself changing from October 2026, do not wait. Book an assessment and get at least one contractor quote for any required improvements. Prices will rise as 2030 approaches.

5. Note the PRS Database launch. Registration is expected to open in late 2026. Prepare your property details — addresses, Unique Property Reference Numbers, and safety certificates — so you can register each property promptly when the service goes live. Failing to register will block you from obtaining a possession order in most circumstances.

6. Review your mortgage fix expiry date. If you are rolling off a fix in the next six months, compare the Bank of England July 2026 averages — 4.79% for a two-year fix, 4.61% for a five-year fix — against your current rate, and model the monthly cash-flow change against your current rent income before you accept a renewal.