Professional property investors are continuing to show confidence in the UK market despite mounting regulatory and economic pressures, according to the latest Property Investor Report from Handelsbanken.

The bank’s fifth annual survey found that just 1% of investors plan to exit the sector over the next 12 months, despite higher borrowing costs, geopolitical uncertainty and the introduction of the Renters’ Rights Act.

Instead, many landlords are adapting their strategies. The report found that 63% of investors have raised rents in response to increasing costs, while 46% have delayed upgrades or maintenance work on their portfolios.

The new rental legislation is also reshaping landlord behaviour. According to the survey, 59% of respondents are tightening tenant criteria, 56% are investing more in property conditions or amenities, and 44% said they may raise rents earlier than previously planned.

Despite wider economic uncertainty, investor sentiment remains relatively positive. More than 90% of those surveyed believe the value of their portfolio will increase over the next year, highlighting ongoing confidence in the long-term fundamentals of UK property.

The report states: “Investors are confident in the resilience of the property market to outlast upheaval.”

The figures reinforce the growing divide emerging within the sector, with landlords increasingly focused on operational efficiency, stronger-quality tenants and regions offering better yields and affordability. For many investors, the current market appears to be less about retreat and more about strategic repositioning.