Professional landlords are still planning to expand despite higher costs and the early impact of the Renters’ Rights Act, according to Handelsbanken’s 2026 Property Investor Report. The lender said only 1 percent of investors in its panel expect to leave the sector in the next 12 months, while 84 percent plan to increase their holdings.
Scale is becoming the main defence against tighter margins
The report suggests the private rented sector is not emptying out evenly. Smaller and less committed landlords may still be trimming stock, but larger operators appear to be adapting by becoming more selective, more process-driven and more willing to invest through the cycle.
Handelsbanken said 63 percent of investors have raised rents because overall costs are higher, while 46 percent have delayed upgrades or maintenance. In response to the Renters’ Rights Act, 59 percent said they are tightening tenant criteria, 56 percent are investing more in property condition or amenities and 44 percent may raise rents earlier than planned.
For landlords, that matters because it points to a market splitting in two. The headline political narrative has focused on landlord exits, but this survey suggests professional operators are not simply retreating. They are changing how they run portfolios, which may widen the gap between scaled landlords and smaller investors who lack margin for compliance, voids or refurbishment costs.
There is also a harder edge to the data. If costs are pushing more landlords to raise rents, tighten criteria and delay non-urgent works, the practical effect for tenants could still be a tougher market even if larger investors remain active. That is a more complicated outcome than either side of the usual landlord exodus debate admits.
This follows Landlord Knowledge’s coverage of Savills’ estimate that around 700 rental homes a day were leaving the market, which highlighted the pressure on supply from disposals and tenure change. The Handelsbanken findings do not cancel that trend out. Instead, they suggest the stock that remains may become more concentrated in the hands of landlords with scale and stronger operating systems.
Portfolio strategies are shifting, not standing still
That ties in with other signs of institutional and portfolio-level repositioning. Landlord Knowledge recently reported on the launch of an NRLA service aimed at portfolio landlords, underlining how much demand there is for data, compliance support and operational guidance at the larger end of the sector.
The warning for buy-to-let investors is that staying in the market is no longer the same as standing still. The landlords who look strongest in this survey are not passive holders hoping policy pressure fades. They are actively tightening systems, reviewing standards and pricing risk more aggressively.
For landlords with smaller portfolios, that may be the real lesson. If the sector is becoming more business-like, the gap between those with a plan and those without one is likely to widen over the next year.
What this means for landlords
- If you hold multiple properties: review whether compliance, tenant screening and maintenance systems are strong enough to cope with periodic tenancies and tighter margins.
- Watch for: earlier rent reviews and stricter applicant checks as more landlords try to protect income and reduce risk.
- If costs are rising: delaying all upgrades may save cash short term, but weaker stock could become harder to let.
- Bottom line: better organised landlords look set to gain share even if the overall market stays under pressure.
Editor’s view
The interesting part of this report is not landlord confidence on its own. It is the shape of that confidence. The sector looks less like a broad retreat and more like a sorting process in which scale, systems and discipline matter more each quarter.
Author: Editorial Team – UK landlord & buy-to-let news, policy, and finance
Published: 20 May 2026
Sources: Handelsbanken Property Investor Report 2026
Related reading: Savills: 700 rental homes a day leave landlord market
