This year was supposed to be the year of the great landlord exodus. We were told there would be a stampede for the door, as the combination of incoming legislation such as the Renters’ Rights Act, plus increased landlord responsibilities, made it less affordable than ever to be in the property sector. And yet, we have seen something rather different, writes Phil Basten, Handelsbanken Manchester & Trafford branch, so what is going on?
Handelsbanken’s 5th Property Investor Report, which surveys professional investors in the North West and across Britain, finds a sector that is not only resilient but apparently thriving.
It’s true we have seen an unexpectedly high level of volatility in both global and national economies. The refrain that we are in unprecedented times has been repeated so often it seems to have lost all meaning; I’m not even sure what a return to ‘precedented times’ would look like. Equally, 2026 has been a significant year in the property world; several pieces of important legislation have come into force, placing new duties and costs on landlords.
One could be forgiven for thinking this was a time to batten down the hatches, trim sails, and survive. But that is not what we are seeing. Almost all our respondents – a massive 93% – said they expected portfolios to increase in value, with almost two in five (38%) expecting them to increase “a lot”. A similarly large majority – 84% – plans to increase holdings over the next year, as against only half of last year’s panel. Moreover, we carried out our survey after the start of the Iran war. Could something actually be going right?
Dare I say those legislative changes are not putting anyone off – at least not at the moment? Certainly, landlords have new challenges, but they are, for the most part, preparing for the future. More than half are investing in improving property condition and amenities, and two-thirds are tightening their tenant criteria. An overwhelming majority are investing in energy efficiency measures such as smart meters, solar panels or EV charging. Far from being a liability, it seems demand for greener property is a business opportunity as more than half say tenants will pay more for such features. Of course, the changes and upgrades are not cost-free, and almost half of respondents plan to increase rents as their costs rise. But the feared landlord exodus is not happening – only 1% of our panel plans to exit the sector entirely. There is an appetite for relatively new asset classes too, a whopping 71% see opportunities in build-to-rent.
All of this means the property investment sector is not just alive and well, but ready to deal with the new normal – whatever that might be. In our branch conversations with customers, we hear what it’s really like in the market and help them adjust accordingly. We also know our customers well because Handelsbanken is a relationship bank, meaning our customers deal with a dedicated relationship manager who understands them and their business. This, in turn, means we understand the market in the North West, sector by sector, sub-region by sub-region. Our key expertise is property – which is why we commission research like this each year, in order to really get under the bonnet. And at a time when things are looking somewhat uncertain, this should be reassuring to hear.
We cannot say what the next few weeks or months will bring – at the time of writing this there is not even certainty over who will be the prime minister by the time you read it – who knows, the North West may have a man in Number 10. But one thing we do know: the economy of the North West, the property sector especially, is as buoyant as it has ever been. There is still plenty of business to be done for those who want it. When we interviewed property investors, we found almost three quarters were optimistic there would be plenty of buying opportunities over the next 12 months, whatever happens in the world.
So, all I would say is, if that is your plan too, maybe it’s time to talk to your bank.
