What this means for the sector
The figures underline HMRC’s tougher stance on property income and reflect the risks for landlords who fail to declare rental earnings. While the average repayment per disclosure was £5,800, many cases run higher once penalties and interest are applied. Agents should be aware that ‘accidental landlords’ and those with multiple income streams remain particularly exposed.
Why agents should take note
Tax compliance directly affects the stability of the private rented sector. Propertymark has consistently warned that complex rules, such as mortgage interest relief changes, create risks of misreporting and so-called ‘phantom profits’. Clear advice from agents can prevent landlords from being caught out.
Our resource on Self Assessment tax returns provides practical guidance for members and clients, while our uninhabitable properties update shows how HMRC’s approach to property taxation can shift quickly, often with significant financial consequences.
What agents should do now
- Remind landlords that all rental income must be declared — including from short-term lets and shared ownership.
- Encourage landlords to use HMRC’s online tool if they are unsure whether they need to file a Self Assessment return.
- Direct clients who may have undeclared income to the LPC before HMRC identifies them, as voluntary disclosure typically reduces penalties.
Next steps
HMRC’s record-breaking recoveries highlight the need for landlords to keep their tax affairs in order and for agents to provide clear, accurate guidance. Propertymark will continue to monitor enforcement trends and press for simpler, fairer rules that support compliance across the sector.
