Short answer: Letting a flat in England while you live abroad is common and workable, but the legal duties do not move to your agent; if a penalty is issued the landlord is the one who pays it. Three things changed in 2026: the tenancy regime was replaced and no fault eviction ended, civil penalties rose to £40,000, and the rule on your rent stayed as it was. Where a landlord lives abroad, the agent deducts 20% tax from the rent and sends it to HMRC unless HMRC has approved gross payment.
An agent does not take the duties off you
A managing agent finds the tenant, collects the rent and handles repairs. On the gas record, the electrical report, the alarm checks and deposit protection, the council can still pursue the landlord, and a penalty can fall on both of you. The one real exception is the Right to Rent immigration check: a written agreement can move that duty, and the liability for its penalties, to the agent. Put that clause in your contract. The GOV.UK guide explains how the check is carried out.
The tenancy law that changed in 2026
The first phase of the Renters’ Rights Act 2025 came into force on 1 May 2026. For a landlord the three main consequences are these:
- No fault eviction has gone. A landlord used to be able to end a tenancy without giving a reason; now one of the statutory grounds is needed. Selling or moving in yourself requires four months’ notice and neither can be used in the first 12 months. Re-letting within 12 months of using those grounds can bring a penalty of up to £40,000.
- Fixed terms no longer exist. Every tenancy is now open ended and periodic. The tenant can leave on two months’ notice. Rent can be raised once a year through the statutory notice, and the tenant can challenge the increase at tribunal.
- Rent in advance and bidding are limited. The advertisement must state a specific rent and offers above it cannot be invited or accepted. No money can be taken before the agreement is signed, and after signing at most one month’s rent in advance.
The documents you must hold
| Document | How often | If you do not comply |
|---|---|---|
| Gas safety record | Every year; to the tenant within 28 days and to a new tenant before they move in | Criminal liability and loss of the right to possession |
| Electrical installation condition report (EICR) | At least every five years, with any remedial work inside 28 days | A civil penalty of up to £40,000 |
| Smoke and carbon monoxide alarms | A smoke alarm on every storey, a carbon monoxide alarm in any room with a fuel burning appliance, all working on day one of the tenancy | A penalty of up to £5,000 |
| Energy performance certificate (EPC) | The property must be at least band E to be let | A penalty of up to £5,000 per property |
| Deposit protection | Into an authorised scheme within 30 days of receipt, with the prescribed information to the tenant | Compensation of one to three times the deposit and a bar on obtaining possession |
The deposit is capped at five weeks’ rent, or six weeks where the annual rent is £50,000 or more. The detail is on the GOV.UK deposit page.
The tax taken out of your rent
There is a separate regime for landlords who live abroad. Your letting agent, or the tenant where there is no agent and the rent is over £100 a week, deducts 20% tax from the rent after allowable expenses and pays it to HMRC. To receive the rent without that deduction you apply to HMRC, on form NRL1 for an individual, and your UK tax affairs have to be up to date. The application page is on GOV.UK.
Approval removes the deduction, not the tax. You still report the rent on a Self Assessment return: register by 5 October, paper return by 31 October, online return and payment by 31 January. Because a non-resident has to file the residence pages, HMRC’s own free online service cannot be used, so you either file on paper by the end of October or use commercial software or an accountant. The rates and a worked example are on our rental income tax page.
Management fees and choosing an agent
There is no official scale for full management; each firm publishes its own. On the schedules published in September 2026 full management runs between 18% and 21% including VAT: Savills and Foxtons at 20.4%, Winkworth at 19.2% and the regional chain Leaders at 18%. Hamptons quotes 12 to 17% plus VAT. Tenant find alone is usually one month’s rent plus VAT. Residential rent is exempt from VAT, so a landlord cannot recover it: always compare quotes on the VAT inclusive figure.
Check two things when you pick an agent: membership of a redress scheme has been compulsory since 2014 and client money protection since 2019. Both certificates must be displayed in the office and on the website. If they are missing, walk away.
The clause an overseas owner most often misses
You must give the tenant, in writing, an address in England or Wales where notices can be served. Until you do, the rent is not treated as due, which makes arrears hard to recover. Using your agent’s address satisfies this, and under the new regime the written statement of terms has to carry that address anyway.
What is coming next
- Landlord registration: a national private rented sector database is being set up. The regulations are still in draft and the regional rollout is planned to start on 15 December 2026. A property cannot be advertised without an active entry.
- Energy rating: in January 2026 the government set a single compliance date of 1 October 2030 for a higher standard in rented homes. It is not law yet and today’s rule is unchanged: band E is enough to let. An earlier date of 2028 for new tenancies was consulted on and rejected.
For current data on where to invest, see the cities with the highest rental yields and our investment opportunities page.
Frequently asked questions
Can someone living abroad let a property in the UK? Yes. There is no nationality or residence requirement; the duties are the same as for a resident landlord, with the tax deduction scheme applying on top.
Can the 20% taken from the rent be reclaimed? Yes. It is credited against your Self Assessment bill and any excess is repaid. You can also ask HMRC for approval so that it is not deducted in the first place.
If I use an agent, do penalties still fall on me? For most duties yes, and the council can hold the landlord and the agent jointly responsible. Only the Right to Rent check can be moved to the agent, and only by written agreement.
How does ending a tenancy work now? No fault eviction has gone. Selling or moving in yourself needs four months’ notice and cannot be used in the first 12 months; for rent arrears the notice is four weeks.
What does full management cost? On the agent schedules published in September 2026 full management runs between 18% and 21% including VAT. There is no official scale and the figure is negotiable.
Sources
Renters’ Rights Act: an overview for landlords (GOV.UK), paying tax on rent to landlords abroad (GOV.UK), minimum energy efficiency standard for rented homes (GOV.UK).
How we help you with this
As capital.works®, the Overseas Property Centre, we represent selected developments in England. Every development live on the site has its price list, floor plans and completion schedule on its own page. We are an FCA authorised credit broker (FRN 1049015) and a member of the NACFB; the purchase, the finance, residency and post completion management are all run by one team.
