A sizeable portion of landlords – 60% – intend to increase their rents in response to the rising cost of living, shows research from Handelsbanken.

Additionally, of the 120 landlords the survey asked, of whom the average portfolio size was 7.5 properties, 20% said they aimed to sell some of their portfolio to help ease financial worries, and 33% said they are looking to make their properties more energy efficient.

In total, 93% of survey participants say the economic background has affected their investment strategy.

In terms of buying, 34% of those asked replied that they are “cutting back” on acquiring city properties because more people are working from home.

And 45% said they want to buy lower value properties to remain under the stamp duty threshold.

Handelsbanken chief economist James Sproule comments: “The property market is entering a period of increasing uncertainty, with house prices in some areas already falling and a rising regulatory burden being seen by some landlords as a reason to reduce their exposure to the market.

“While the ongoing cost of living crisis might be seen as the driving factor in the buy-to-let market, equally important are the post-pandemic movement back into cities, potential buyers delaying purchases and thus looking to rent, and fewer properties, meaning those who do persevere, are likely to see higher yields.

“Savvy landlords are using the changes to stamp duty to cost-effectively reshape their portfolios and invest in energy efficiency, something which has become an ever greater concern of potential tenants.”