But 84% of investors plan to grow portfolios
Only 1% of professional property investors plan to exit the market entirely this year, while 84% intend to increase their portfolio holdings over the next 12 months, according to Handelsbanken’s 2026 Property Investor Report.
It suggests that professional landlords continue to see growth opportunities despite the combination of regulatory change, cost pressures and economic uncertainty. The conclusions are based on a survey of 200 UK real estate investors, property management professionals and landlords, conducted out after the start of the Iran war.
The number planning to expand is up significantly from last year’s survey, when only just over half (54%) said that they intended to expand. 70% of those wanting to expand cite buying opportunities or valuations. 58% say they want to expand because of a continued strong rental demand. A third say financing availability is prompting their expansion plans.
Landlords also expect existing properties to perform well, with nearly all (93%) expecting their portfolio value to rise over the next 12 months.
Investors are raising rents in face of higher costs
Investors are also responding to the changes within the Renters’ Rights Act. 59% are tightening tenant selection criteria and a similar amount (56%) are investing more in property condition or amenities, although 46% have delayed upgrades or maintenance.
However, it’s likely that tenants will pay some of the price. 63% of investors say higher overall costs have forced them to raise rents, while 44% are considering raising rents earlier than planned in response to the new regulation.
James Sproule, UK chief economist at Handelsbanken, said: “Our survey suggests there has not been a notable exodus of professional investors from the UK property market. Instead, landlords are adapting to a more challenging environment by becoming more selective, more operationally disciplined and more focused on scale.
“The Renters’ Rights Act, higher costs and geopolitical volatility are all making property investment more complex. That does not mean professional investors are walking away, but it does mean the sector is likely to look different, with larger and more strategic landlords better placed to absorb cost, manage risk and take advantage of opportunities.”