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The UK lettings market has remained stable following the Autumn Budget, despite predictions of a large-scale landlord exit, according to new research from LRG.
Data from LRG’s Winter 2025/26 Lettings Report, based on surveys of landlords and tenants across England and Wales, indicates that 51% of landlords plan to maintain or expand their portfolios in response to recent tax measures.
Tenant affordability and the need to retain good tenants were cited by 46% of landlords as the main factor influencing rent-setting decisions, ahead of running costs, regulation, and taxes. Nearly half of landlords reported no change to their asking rents over the past year.
The report also highlights differences between lettings and sales markets. While sales respondents showed signs of renewed activity, a third of lettings respondents said their confidence had not changed, and few reported major shifts in strategy. The absence of significant Budget disruption was identified by 38% of respondents as the most influential factor shaping their plans.
External data supports this picture of a steady market. UK Finance reported that new buy-to-let lending rose 22.7% in Q3 2025 compared with the same period a year earlier, with average gross rental yields at 7.15%. LRG analysis of Companies House data shows that 67,114 new limited companies were incorporated under the buy-to-let SIC code in 2025, up 21% on 2024.
Long-term landlords are increasingly dominant. The 2024 English Private Landlord Survey found that landlords with five or more properties account for 49% of tenancies while representing 17% of landlords, and the share operating through limited companies has nearly doubled since 2018.
For tenants, supply is expected to tighten further, with nearly two-thirds of landlords predicting reduced availability over the next year. Despite this, landlords are prioritising tenant affordability over raising rents in response to supply pressures.
Allison Thompson, national lettings managing director at LRG, commented: “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.”
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