The first months of 2026 are revealing clear patterns in where landlords choose to invest, with data pointing towards three distinct priorities shaping purchasing decisions. Energy efficiency requirements, location characteristics, and rental demand dynamics are creating a new framework for property investment decisions.
Energy ratings driving purchase choices
Properties with higher energy performance certificates are commanding increased attention from landlords at the start of 2026. The focus extends beyond regulatory compliance, with investors recognising that energy-efficient properties offer lower void periods and attract quality tenants willing to pay premium rents.
Properties rated EPC C and above are particularly sought after, as they provide a buffer against potential future regulation changes whilst offering immediate advantages in tenant retention.
The investment calculation has shifted to incorporate long-term energy performance rather than purely acquisition cost. Landlords are increasingly factoring in the expense of retrofitting versus purchasing properties that already meet higher standards. This is especially relevant for older housing stock, where improving energy efficiency can represent a significant additional investment beyond the purchase price.
Urban versus suburban positioning
Location preferences among landlords in early 2026 reflect evolving tenant requirements shaped by workplace flexibility. Urban centres with strong transport links continue to hold appeal, particularly where employment opportunities remain concentrated.
At the same time, suburban locations offering larger properties at comparable or lower yields are attracting increased investor interest. Connectivity has become the defining factor rather than simple proximity to city centres.
Areas with reliable transport infrastructure enabling commutes of under an hour to major employment hubs are seeing heightened landlord activity. Market towns and locations positioned along key transport corridors are drawing attention for their combination of affordability, amenities, and long-term tenant appeal.
Rental demand indicators
Landlords are closely monitoring locations where rental demand significantly outstrips available supply. University cities continue to attract investment due to consistent demand, though investors are increasingly broadening focus beyond traditional student accommodation.
Properties suited to young professionals and families in these areas are proving particularly attractive, offering flexibility and resilience across changing demand cycles.
Regional cities with expanding employment sectors, especially in technology and professional services, are also seeing increased interest. These locations often deliver stronger yields than London and the South East whilst maintaining robust rental fundamentals.
Areas benefiting from regeneration projects or infrastructure investment are receiving additional attention, as landlords anticipate improved connectivity, amenities, and rental appeal over the medium term.
Investment approach
Early 2026 data suggests landlords are applying more sophisticated investment criteria than in previous years. Decisions increasingly reflect a balance between energy efficiency, location quality, and sustainable rental demand rather than headline yield alone.
Properties combining strong energy performance with good connectivity and reliable tenant demand are commanding premium prices, reflecting increased competition among investors.
Conversely, properties requiring significant energy upgrades in weaker rental markets are seeing reduced interest, even where advertised yields appear attractive.
For landlords entering or expanding portfolios in 2026, the emerging evidence indicates that long-term success depends on aligning tenant preferences, regulatory readiness, and location dynamics.
The investment landscape continues to evolve, but the opening months of 2026 offer clear signals on where landlords see the most promising opportunities for the year ahead.
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