Are Landlords Leaving the UK? The Truth About Property Investment in 2026

Table of Contents

• Are Landlords Really Leaving the UK?
• UK Property Investment vs Stock Market
• Buy to Let Mortgage Gearing: The Key Concept
• Overseas Property Investment Risks
• The Renters Rights Act and Being a Landlord in 2026
• HMO Property Investment and Advanced Strategies
• Frequently Asked Questions

Are landlords leaving the UK? According to Ian Rand, chief executive of Monument Bank, a growing number of his high net worth clients are snubbing UK property investments and looking for alternatives overseas. He claims that conventional buy to let no longer stacks up when compared to a standard tracker fund in the stock market. Simon Zutshi strongly disagrees. In this post we break down the UK property investment vs stock market debate, explain why buy to let mortgage gearing changes everything, explore the real overseas property investment risks, and explain why HMO property investment and serviced accommodation are the strategies serious investors are using in 2026.

Are Landlords Really Leaving the UK?

The claim that landlords are leaving the UK is not entirely without merit. High net worth individuals are facing increasing tax burdens, tighter regulation, and a political environment that feels increasingly hostile to property investors. Some are choosing to take their money elsewhere.

But is that the full picture? Not quite. The statement that UK property investment no longer works is based on a very specific set of assumptions that do not reflect how successful property investors actually approach the market.

The Five Year Mistake

Ian Rand's argument is based on a five year investment window. And Simon Zutshi's response is clear: five years is simply not long enough to judge UK property investment fairly.

A lot can happen in five years. The market can stagnate. Prices can dip. Costs can rise. But that is not unique to property. The same is true of any asset class. Property investing is a long term strategy, ideally ten to twenty years minimum. Over that timeframe, the picture looks very different indeed.

Key takeaway: Asking whether UK property investment works over five years is the wrong question. The right question is what it delivers over ten, twenty, or thirty years.

What the Long Term Data Shows

Simon Zutshi has been investing in property for over 30 years. The properties he bought decades ago are worth multiples of what he paid for them. Values and rents that seemed unimaginable at the time are now a reality. That is what happens when you combine a limited supply of accommodation with a growing population over the long term.

In March 2026, Halifax, the UK's biggest mortgage lender, reported that average prices dropped half a percent. That followed two months of growth earlier in the year. Prices go up and they come down. That is the nature of any market. But the long term trajectory of UK property values is clear.

UK Property Investment vs Stock Market: The Numbers People Get Wrong

The UK property investment vs stock market debate is one of the most common and most misunderstood comparisons in personal finance. On the surface, the stock market appears to win. Historically a tracker fund has delivered around 12% per annum. Property has delivered closer to 7%. So surely stocks win?

Not so fast. This comparison makes a critical error.

The £100,000 Comparison

Here is how the UK property investment vs stock market comparison actually works:

• Stock market: You invest £100,000. You get 12% growth. Your return is on £100,000.
• Property: You invest £100,000 as a deposit. You use a buy to let mortgage to purchase a £400,000 property. Your 7% growth applies to £400,000, not £100,000.

Even at a lower growth rate, the cash on cash return from property is significantly higher because of buy to let mortgage gearing. Your tenants cover the mortgage interest, the management costs, and the maintenance. The asset grows in value. And you did it all with £100,000.

Key takeaway: The UK property investment vs stock market debate is not a fair comparison unless you factor in buy to let mortgage gearing. When you do, property wins on cash on cash return.

Buy to Let Mortgage Gearing: The Concept That Changes Everything

Buy to let mortgage gearing, also known as property investment leverage, is one of the most powerful and most misunderstood concepts in property investing. If you want to understand why landlords should not be leaving the UK, understanding gearing is essential.

What Is Buy to Let Mortgage Gearing?

Gearing simply means using borrowed money to increase the size of your investment. In property, that means using a buy to let mortgage to purchase a much larger asset than your cash alone would allow. The key points are:

• You put in a deposit, typically 25% of the purchase price
• The buy to let mortgage covers the remaining 75%
• Your tenants pay the rent, which covers the mortgage interest and costs
• Any capital growth applies to the full property value, not just your deposit
• Inflation erodes the real value of your debt over time

Good Debt vs Bad Debt

As Robert Kiyosaki explains in Rich Dad Poor Dad, there is a fundamental difference between good debt and bad debt. Bad debt costs you money. Good debt makes you money. A buy to let mortgage is good debt because someone else, your tenant, is paying for it while the asset grows in your favour.

This is also explored in depth in Property Magic by Simon Zutshi, which breaks down exactly how to use property investment leverage to build long term wealth in the UK.

Key takeaway: Buy to let mortgage gearing is what makes property investment uniquely powerful compared to other asset classes. No other investment allows you to control a £400,000 asset with £100,000 of your own money while someone else pays the borrowing costs.

Overseas Property Investment Risks: Why the Grass Is Not Always Greener

With some landlords leaving the UK, the question of overseas property investment naturally arises. Is buying property abroad a smarter move? Simon Zutshi urges serious caution.

The Holiday Romance Trap

One of the most common overseas property investment risks is what Simon calls the holiday romance trap. You visit a beautiful location abroad. The property seems incredibly cheap compared to UK prices. You get swept up in the excitement and invest on a whim.

But cheap compared to UK prices does not mean cheap relative to the local economy. If a property is expensive for the country you are buying in, who is going to rent it? Can local residents actually afford the rent? Is it a sustainable market?

The Complexity of Investing Abroad

There is also a significant difference between buying a property abroad as a second home or retirement retreat and buying it as a genuine investment. When buying property overseas as an investment you are dealing with:

• A different legal system and land ownership rules
• A different language and cultural context
• Currency risk and exchange rate fluctuations
• Different taxation rules that may significantly affect returns
• Limited ability to conduct thorough due diligence from the UK
• Less stability in some political and legal environments

Key takeaway: The overseas property investment risks are significant and often underestimated. UK investors benefit from understanding the language, the law, the market, and the culture. That home advantage is worth far more than many people realise.

Why the UK Still Wins

The UK offers property investors something that is genuinely rare. A stable currency, a well understood legal system, thorough due diligence tools, a growing population, and a chronic undersupply of housing. That combination creates a market where long term UK property investment continues to make sense for those who know what they are doing.

The Renters Rights Act and Being a Landlord in 2026

There is no question that being a landlord today is more challenging than it was five, ten, or twenty years ago. The Renters Rights Act has introduced significant new responsibilities and risks. Section 24 landlord tax continues to squeeze those who own property in their own name. And regulation is tightening across the board.

But Simon Zutshi's view is that regulation, to a certain extent, is actually good. It raises standards. It removes bad landlords from the market. And it creates an environment where professional landlords who do things properly can thrive.

Inflation Is Still on the Landlord's Side

Despite the challenges, several macro economic factors continue to work in the landlord's favour:

• Inflation pushes rents and property values higher over time
• Inflation erodes the real value of mortgage debt
• A growing population continues to drive demand for rental accommodation
• The UK chronically undersupplies new housing relative to demand

Key takeaway: The challenges facing landlords in 2026 are real. But they do not change the fundamental economics of long term UK property investment. Done correctly, being a landlord in 2026 and beyond remains a viable and potentially very profitable strategy.

HMO Property Investment and Advanced Strategies: Where the Real Returns Are

Simon Zutshi agrees with one element of Ian Rand's argument. Conventional vanilla buy to let is not as attractive as it once was in many parts of the UK. But that does not mean UK property investment is dead. It means the strategy needs to evolve.

HMO Property Investment

HMO property investment, or houses in multiple occupation, allows landlords to rent individual rooms to separate tenants rather than letting the whole property to a single household. The rental income from an HMO property investment is significantly higher than a standard buy to let on the same property. That higher income means:

• Better cash flow each month
• More resilience if one room becomes vacant
• A stronger return on the capital invested
• The ability to absorb higher mortgage costs without killing profitability

Serviced Accommodation

Serviced accommodation is another advanced strategy that continues to generate strong returns for investors who understand how to run it correctly. By letting a property on a short term basis to corporate clients, tourists, or contractors, landlords can achieve nightly rates that far exceed what a traditional buy to let would generate monthly.

Both HMO property investment and serviced accommodation require more knowledge and management than a standard buy to let. But the rewards reflect that additional effort.

Key takeaway: The investors who are leaving the UK property market are often those relying on conventional buy to let. Those who have moved to HMO property investment and serviced accommodation are still achieving very strong returns.

Frequently Asked Questions

Are Landlords Leaving the UK in Large Numbers?

Some high net worth landlords are leaving the UK due to increasing taxation and regulation. However the narrative that UK property investment no longer works is misleading. Conventional buy to let faces more pressure than before, but investors using advanced strategies like HMO property investment and serviced accommodation continue to achieve strong returns.

Is UK Property Investment Better Than the Stock Market?

When you factor in buy to let mortgage gearing, UK property investment compares very favourably with the stock market. While stocks may deliver a higher percentage return, property allows you to control a much larger asset with the same capital. Your tenants cover the borrowing costs and any capital growth applies to the full property value, not just your deposit. That makes the cash on cash return from property significantly stronger.

What Is Buy to Let Mortgage Gearing and Why Does It Matter?

Buy to let mortgage gearing means using a mortgage to purchase a property worth far more than your available cash. A £100,000 deposit can control a £400,000 property. Any capital growth applies to the full £400,000. Your tenants pay the mortgage interest. And inflation erodes the real value of the debt over time. Gearing is one of the most powerful concepts in property investment and one of the main reasons UK property investment outperforms many other asset classes over the long term.

What Are the Main Overseas Property Investment Risks?

The main overseas property investment risks include different legal systems, currency fluctuations, language barriers, unfamiliar taxation rules, and limited ability to carry out thorough due diligence. Many UK investors also fall into the holiday romance trap, buying property in a location they have visited on holiday without properly assessing whether it works as a rental investment for local residents.

Is HMO Property Investment Still Profitable in 2026?

Yes. HMO property investment continues to generate strong returns in 2026 because the rental income from letting individual rooms to separate tenants is significantly higher than a standard buy to let on the same property. That higher income provides better cash flow, more resilience to vacancies, and a stronger return on investment even after accounting for higher management costs.

Should I Still Invest in UK Property Given the Renters Rights Act?

Yes, but you need to invest correctly. The Renters Rights Act has raised the bar for landlords in terms of compliance and professionalism. Those who follow the rules and provide good quality accommodation have nothing to fear. Advanced strategies like HMO property investment and serviced accommodation continue to generate excellent returns for investors who take the time to understand them properly.

Final Thoughts: Are Landlords Leaving the UK for Good?

Are landlords leaving the UK? Some are. But the claim that UK property investment no longer works does not stand up to scrutiny when you understand the full picture.

The UK property investment vs stock market debate looks very different once you factor in buy to let mortgage gearing. The overseas property investment risks are significant and often underestimated by those chasing cheaper markets abroad. And while conventional buy to let faces real challenges, HMO property investment and serviced accommodation continue to deliver strong results for investors who are willing to develop their knowledge and skill.

The fundamentals of UK property investment remain strong:

• Limited housing supply against a growing population
• Inflation driving rents and values higher over time
• Buy to let mortgage gearing multiplying the return on your capital
• Advanced strategies like HMO property investment delivering returns that vanilla buy to let cannot match
• A stable, well understood market with none of the overseas property investment risks that come with buying abroad

Property investing is not a five year strategy. It is a long term commitment to building generational wealth. Those who understand that, and who invest in the right knowledge and strategies, will continue to thrive in 2026 and beyond.

At Property Magic, we believe knowledge is the most powerful investment you can make. Read Property Magic by Simon Zutshi to understand exactly how to build long term wealth through UK property investment the right way.

Listen to the full discussion on the Property Magic Podcast. Subscribe to the channel and hit the bell icon so you never miss a new episode. And do not forget to share your thoughts in the comments. Do you think UK property investment still works in 2026? We would love to hear your view.