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

The Welsh Government has set out plans to change how Houses in Multiple Occupation (HMOs) are treated for council tax, confirming that property owners, not tenants, will remain liable and that properties will be valued as a single dwelling. The move brings greater consistency to the system and aligns Wales more closely with the approach already taken in England.

From 6 April, 125,000 landlords and sole traders in the property sector must use Making Tax Digital (MTD) software, in the biggest change to the Self-Assessment system since 1997. Support is available to those impacted, and HMRC has confirmed that no penalties will be issued for late quarterly updates in the 2026 to 2027 tax year as the system beds in.

With elections to the Senedd approaching, we have set out clear priorities for the next Welsh Government to support a stable, professional and sustainable housing sector. Our new manifesto, published in Welsh and English, outlines practical steps to increase supply, raise standards and support property professionals, while ensuring consumers are protected.

With Holyrood elections set for 7 May 2026 and a national housing emergency declared in 2024, we have set out what the next Scottish Government must do to support a stable, affordable and functioning property market. Our manifesto focuses on practical reforms that increase supply, improve affordability and strengthen professional standards — shaped directly by member insight.