Serious property investors undeterred by Renters Rights Act – claim

Serious property investors undeterred by Renters Rights Act – claim

Professional property investors are largely undeterred by regulatory changes which some commentators predicted would accelerate a landlord exit.

That’s according to Handelsbanken’s fifth annual Property Investor Report.

The report, informed by a survey of 200 UK real estate investors, property management professionals and landlords, was carried out after the start of the Iran war and suggests that while parts of the market are reassessing their exposure to buy-to-let, professional investors continue to see opportunity.

Almost all respondents, 93%, expect their portfolio value to rise over the next 12 months, while 84% plan to increase their portfolio holdings, compared with 54% in Handelsbanken’s 2025 survey.

Only 1% said they will exit the market entirely within the next year.

The findings point to a more professionalised private rental sector, with landlords increasingly needing scale, operating expertise and clear investment strategies to adapt to regulation, rising costs, tenant affordability pressures and geopolitical uncertainty.

Other notable findings include:

  • Opportunity-led growth: Among those planning to expand, 70% cite buying opportunities or valuations, while 58% point to strong rental demand
  • Renters’ Rights Act: Investors are adapting to a tougher market, with 59% tightening tenant selection criteria, 56% investing more in property condition or amenities, and 44% considering raising rents earlier than planned in response to the Renters’ Rights Act.

The bank’s 2026 report shows professional landlords are not retreating from the market. Instead, many larger and more professionalised landlords continue to see opportunities to put capital to work, particularly where valuations, rental demand and financing conditions support growth.

The reasons for growth also point to a more opportunity-led market. Among investors planning to expand, 70% cite buying opportunities or valuations, while 58% point to strong rental demand and 33% cite financing availability.

A spokesperson says: “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.”

This article is taken from Landlord Today