"Our survey suggests there has not been a notable exodus of professional investors from the UK property market"
- James Sproule - Handelsbanken
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.
Handelsbanken’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.
James Sproule, UK Chief Economist at Handelsbanken, commented, “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.”
Investor discipline rewarded
While the headline findings point to renewed confidence, the report also suggests that the PRS is becoming more operationally disciplined. Professional landlords are increasingly behaving like larger businesses, with clearer operating models, tenant strategies and investment plans, rather than casual investors responding opportunistically to the market.
In response to the Renters’ Rights Act, 59% of respondents say they are tightening tenant selection criteria, while 56% say they are investing more in property condition or amenities. A further 44% are considering raising rents earlier than planned.
This suggests that regulation is changing landlord behaviour in fundamental ways, but not necessarily driving a wholesale retreat from the market. Only 26% say they are considering selling some or all properties, while just 3% say they are shifting focus to a different sector.
Brian Lehane, Corporate Account Manager, Handelsbanken Northampton Branch, said: “Our report highlights that the majority of investors are looking to grow their portfolios despite the economic challenges that persist, and we are seeing that translate to increased activity in our region and optimism for future prospects.
“With key metrics continuing to hold up, particularly capital values and rental growth, Handelsbanken continues to support growth aspirations with flexible funding solutions.”
Looking ahead
The report points to a UK property investment market that remains active, but is becoming more complex and more selective. Professional landlords are still looking to grow, but the conditions for successful investment are changing. Rather than expanding indiscriminately, investors are placing greater emphasis on valuation discipline, tenant quality, asset standards, cost management and long-term resilience.
This is likely to accelerate the professionalisation of the PRS. As regulation increases, operating costs remain elevated, and tenant expectations continue to evolve, landlords with scale, experience and clear operating strategies may be better placed to adapt. In turn, this could change the shape of the market, with more professionally managed portfolios playing a greater role in rental supply.
For investors, the findings underline the importance of experienced advice, local market knowledge and long-term relationships in a more demanding environment. Property investors continue to see reasons for confidence, but success is likely to depend on understanding where opportunities remain, managing risk carefully and being able to move decisively when the right assets become available.
