A recent survey by Lendlord reveals that 66% of UK landlords intend to invest in the private rented sector (PRS) in 2026, despite ongoing uncertainty around tax changes and rising costs. This indicates a continued commitment to growth and portfolio management, although confidence remains divided across the sector.

Investment intentions remain strong

According to Lendlord’s latest research, two-thirds of landlords are planning to acquire, refinance, or refurbish properties this year. Acquisition is the most popular strategy, with 23% of landlords expecting to purchase additional rental homes within the next 12 months. Meanwhile, 58% of respondents identified buy-and-hold as their primary approach for 2026, demonstrating a preference for long-term investment in the PRS.

This sustained interest in investment comes despite concerns over recent Budget measures that have increased scrutiny on costs, tax liabilities, and ownership structures. The findings suggest that many landlords are adapting their strategies rather than withdrawing from the market, reflecting a pragmatic response to the evolving regulatory environment.

Increased scrutiny on costs and ownership

Lendlord’s chief executive and co-founder, Aviram Shahar, commented on the survey results: “While the Budget has increased scrutiny around costs, tax and ownership structure, our latest survey shows that many landlords remain focused on growth and active portfolio management. They are adapting their approach rather than stepping back.”

He further noted the division in market confidence: “The data also highlights that confidence in the market is clearly divided, with some landlords opting for a cautious approach and others perceiving opportunity. That balance is significant when brokers and lenders are supporting funding and investment decisions going into 2026.”

The survey also highlights that landlords are paying closer attention to rent levels and ownership structures as they seek to mitigate the impact of tax changes. Some are reassessing whether operating through limited company vehicles offers better long-term value, a consideration that has become increasingly relevant given recent tax reforms affecting property income and dividend taxation.

Confidence split amid cost pressures

Despite the majority planning to invest, a notable proportion of landlords are choosing to pause further investment or sell assets. This reflects the pressure from rising operational costs and the complexities introduced by changes to property income and dividend tax. The survey found that 45% of landlords feel very confident about the future of the PRS, while 43% are very concerned, indicating a sector divided in sentiment.

For landlords and agents, these findings underscore the importance of carefully reviewing investment strategies and ownership structures in light of the current fiscal landscape. Maintaining a clear understanding of tax implications and cost management will be essential to sustaining profitability and growth.

Looking ahead: support for landlords

In response to the evolving challenges faced by landlords, The Landlord Association (TLA) is launching a new Trusted Partners Hub in Q1 2026. This initiative will feature verified and approved service providers selected to support landlords, tenants, and property management businesses. Legal, trades, insurance, financial, mortgage, tenant screening, and other service providers are invited to register their interest here: https://landlordassociation.org.uk/become-a-tla-service-partner/

This development aims to provide landlords with reliable access to expert services, helping them navigate the complexities of property investment and management in a changing market.

Summary

Despite concerns stemming from recent Budget changes, two-thirds of UK landlords plan to invest in the PRS in 2026, focusing on acquisitions and buy-and-hold strategies. While confidence is mixed, many landlords are adapting their approaches to manage costs and tax implications, signalling resilience and ongoing commitment to the sector.