Nearly six in 10 professional property investors say they are tightening tenant criteria because of the Renters’ Rights Act, while 63 percent have already raised rents in response to higher overall costs, according to Handelsbanken’s 2026 Property Investor Report. For landlords, the numbers suggest the compliance debate has moved on from theory and into day-to-day letting decisions.
The report says 59 percent of investors are tightening tenant criteria, 56 percent are investing more in conditions or amenities and 44 percent may raise rents earlier than planned. It also found 46 percent have delayed upgrades or maintenance because of higher costs.
That matters now because the pressure is no longer showing up in just one area. Tenant selection, rent-setting and property spend are all shifting at the same time, which is where regulatory change starts to alter the market rather than just landlord sentiment.
RRA costs are feeding into tenant selection and rents
Handelsbanken’s findings suggest professional investors are not rushing for the exit, but they are changing how they manage risk. That is important for landlords because tighter criteria can affect who gets housed just as much as rent levels do.
The report also undercuts the idea that stronger tenant rights automatically produce a neutral cost effect for the sector. If landlords are delaying works, bringing rent rises forward and screening harder, then tenants may feel the impact through access and standards as well as price.
Professional landlords still want to expand, but on tougher terms
This follows Landlord Knowledge’s Handelsbanken says 89% of landlords are spending more on green upgrades and Professional landlords stay in market despite RRA pressure. The latest report sharpens that picture. Investors are still in the market, but they are responding to the new rules by repricing risk and being more selective about who they let to.
That is the part landlords should pay attention to. The easiest reading of the report is that the sector remains resilient because only 1 percent say they will exit in the next 12 months. The harder reading is that resilience is being bought with stricter screening, earlier rent action and delayed works. Handelsbanken’s 2026 Property Investor Report summary sets out those shifts plainly.
For buy-to-let investors, there is also a practical warning in the split between ambition and behaviour. Plenty still want to grow, but growth is becoming more conditional on cleaner tenant files, stronger margins and a clearer route through regulation. That is a very different market from one where expansion rests mainly on house price optimism.
What this means for landlords
- If you’re reviewing applicants: make sure tighter criteria are documented, consistent and tied to genuine affordability and risk checks.
- Watch for: delayed maintenance becoming a false economy if it creates bigger repair, insurance or compliance problems later.
- Bottom line: landlords are still willing to invest, but many are doing it with stricter screening and a firmer view on costs.
Editor’s view
The interesting part of this report is not that landlords are unhappy about costs. It is that many are already changing behaviour in ways tenants will notice, from who gets accepted to when rents move and how long non-essential works are put off.
Author: Editorial Team – UK landlord & buy-to-let news, policy, and finance
Published: 28 July 2026
Sources: Handelsbanken
Related reading: Handelsbanken says 89% of landlords are spending more on green upgrades
