The lettings market has stabilised following the Autumn Budget with most landlords choosing to hold or expand their portfolios rather than exit the sector, according to research from LRG.
The firm’s Winter 2025/26 Lettings Report, based on surveys of landlords and tenants across England and Wales, found that 51% of landlords plan to keep their current portfolio or increase it despite tax changes announced in the Budget.
The figures challenge predictions of a large-scale landlord sell-off, instead pointing to a sector adjusting to new conditions rather than retreating.
The research also suggests landlords are prioritising tenant affordability over profit, with 46% saying the ability of tenants to pay and the need to retain good occupiers is the main factor when setting rents. Nearly half of landlords said they have not changed their approach to rent setting over the past year, despite rising costs and tighter regulation.
STEADY CONFIDENCE
Confidence levels also appear steadier in lettings than in sales. Around a third of lettings respondents said their outlook is unchanged since the Budget, while the most common response across the survey was that the lack of major policy shocks allowed them to continue with existing plans.
Wider market data supports the picture of a sector consolidating rather than shrinking. Buy-to-let lending rose by more than 22% year-on-year in Q3 2025, while more than 67,000 new limited companies were set up for buy-to-let activity during the year, continuing a long-term shift towards professional landlords operating through corporate structures.
The trend is reflected in official data showing landlords with five or more properties now account for nearly half of all tenancies, despite representing a much smaller share of total landlords.
MEANINGFUL SHIFT
Allison Thompson (main picture, inset), National Lettings Managing Director at LRG, says the market has absorbed the impact of the Budget without the disruption many expected.
“The Autumn Budget created uncertainty, but it has not created the crisis some predicted. What we’re seeing is a market finding its level. Landlords who have decided to stay are doing so strategically, with affordability and tenant retention at the centre of their thinking rather than short-term yield.
“That’s a meaningful shift, and one that’s good for the long-term health of the private rented sector. The lettings market has always been more resilient than the headlines suggest, and this data shows that resilience in action.”
