Property investors are increasingly turning to lower-risk buy-to-let strategies as market uncertainty and regulatory changes reshape investment behaviour.
Data from the Sourced Property Investment App shows that buy-to-let (BTL) properties accounted for 43% of listings in March 2026, attracting 26% of total investor enquiries.
Houses in multiple occupation (HMOs) also remained in strong demand, generating 25% of investor interest despite making up just 11% of available opportunities, highlighting continued appetite for income-generating assets.
The shift comes as investors respond to rising costs linked to global instability and changes introduced under the Renters’ Rights Act, which are altering the risk profile of the private rented sector.
RENT TO RENT PROPERTIES
Stephen Moss (main picture), CEO and founder of Sourced, says: “During March, almost half (43%) of uploads to the app by our professional sourcers were for buy-to-let properties, which attracted 26% of all buying interest from investors looking for investment opportunities.
“To give further context, Rent to Rent properties accounted for 20% of the properties uploaded, and attracted 22% of investor enquiries, whilst Buy to Sell properties accounted for 13% of uploaded properties, resulting in 18% of investor enquiries.
“As reported last month, investor interest in HMOs remains high although HMO opportunities are not as readily available. In March HMOs accounted for just 11% of properties uploaded to the app, but still attracted 25% of all investor enquiries (just 1% less than traditional buy-to-lets).”
RISING COSTS
Analysis of the data attributes the growing interest in buy-to-let to a direct response by investors to market fluctuations.
Moss says: “These include the rising costs that are a consequence of ongoing global conflicts, particularly in the Middle East, but is also a response to the consequences of the Renters’ Rights Act on the buy-to-let market.
“Savvy investors who recognise potential risks are now opting for more risk-averse longer term investment strategies rather than the types of deals that in the past may have provided shorter term returns.”
RENTERS’ RIGHTS ACT
He adds: “The Renters’ Rights Act is deterring many landlords from expanding their portfolio, with others exiting the market altogether. A combination of events has resulted in a buyers’ market, with buy-to-lets proving to be a popular investment strategy for serious investors choosing to pursue long-term security.
“Generally speaking, buy-to-let has always been a lower risk investment strategy, without the property gymnastics of more complex deals. For example, the Flip market, when investors typically aim to cash out in six to 24 months, is currently slowing down. With buyers being less confident in the market, they are actively avoiding higher value properties.
“From an investor’s perspective, this has resulted in many investors completing on flip/refurbishment projects but failing to find a buyer for the properties so they can cash out on their investments.”
RISING COSTS
And he says: “With buy-to-let investments, properties are held for much longer periods – typically up to 10 to 15 years and in today’s market. With increasing costs and risks, this is proving to be a very attractive investment strategy as it allows enough time for the market to stabalise, and investors can choose to exit when the market becomes more favourable to them.
“Our professional sourcers have been busy identifying and adding lower risk BTL investment opportunities from across the country, which are uploaded to the Sourced app each day. These opportunities may be lower risk for several reasons – perhaps due to the property already being tenanted, purchased below market value, and/or located in high rental demand areas.
“Similarly, HMO’s, which are rental properties with several tenants, continue to be popular. One of the benefits of HMOs is that if one tenant fails to pay their rent, landlords still receive income from other tenants to help offset costs, which is particularly important in times of uncertainty.
“Buy-to-let is a strategy that allows property investors to ride out market fluctuations, and provides breathing space for them to reconsider their options when the market finds its balance again.”
