Fact sheet: 'Replacement of Domestic Items’ relief for landlords

The Welsh Government’s 2026–27 Budget, approved by the Senedd on 27 January 2026, includes extra support for councils, changes to business rates from April 2026 and more funding for Green Home Wales, but key opportunities were missed to support rental supply and first-time buyers.

Many self-employed property agents and landlords are accustomed to submitting a Self-Assessment tax return annually. However, as the tax and regulatory landscape becomes increasingly complex, the risk of mistakes or missed deadlines could grow, particularly for landlords with small portfolios who must juggle compliance alongside day-to-day responsibilities.

The private rented sector (PRS) is being reshaped by changing motivations and new financial pressures, which help explain the structural changes behind shrinking stock levels, higher churn, and new expectations around compliance and profitability. For agents, these insights help develop and position services to effectively address the needs of their clients in a shifting market.

Despite a multi-year commitment to affordable housing supply and increased investment in acquisitions and homelessness prevention, it is surprising that the Scottish Government is yet again failing to tackle the housing emergency, and the Budget misses an important opportunity to address the growing tax burden on housing. At a time of acute housing pressure, Scotland needs policies that encourage mobility and investment across all tenures.