The Government has announced new legislation to prevent private residential tenants from being swept into the scope of Stamp Duty Land Tax (SDLT) on rent as an unintended consequence of the Renters’ Rights Act 2025 (RRA 2025), which comes into force on 1 May 2026.
The change sits against a dramatic statutory overhaul that substantially strengthens tenant security and increases compliance obligations for landlords.
The property investment landscape has been facing increasing challenges in recent years, and the proposed Renters (Reform) Bill — currently progressing through Parliament — could represent a significant turning point for private landlords.
The Upper Tribunal (Lands Chamber) has provided clarification on the meaning of a “self-contained building” for the purposes of the right to manage (“RTM”) under the Commonhold and Leasehold Reform Act 2002 (“CLRA 2002”).
The decision is particularly significant in light of that expansion of the RTM regime. Since 3 March 2025, leaseholders in mixed-use buildings have been able to exercise the right to manage where the non-residential element comprises up to 50% of the building’s internal floor area, compared with the previous 25% threshold.
