Tenant retention driven by landlord relationships

Research from LRG’s Winter 2025/26 Lettings Report highlights a significant shift in tenant priorities within the UK private rented sector. When tenants were asked what would most encourage them to remain in their current home long term, 68% identified having a good relationship with their landlord or letting agent as the key factor. This was notably higher than other considerations such as feeling settled in the local area (50%), stability in personal circumstances (45%), and confidence in building management and maintenance (44%).

This data suggests that tenants increasingly value the quality of their interactions with landlords and agents over purely financial factors such as rent levels. For landlords, this underlines the importance of fostering positive relationships to encourage longer tenancies and reduce turnover.

Landlords’ perspective on tenant retention

Allison Thompson, national lettings managing director at LRG, commented on the findings: “What this data tells us is that the rental market is growing up. Tenants are not just looking for somewhere to live. They are looking for somewhere to settle. And landlords, overwhelmingly, want the same thing.”

Thompson also noted the impact of tenancy structure changes: “The shift to periodic tenancies is bringing that aligned ambition to the surface. The landlords who understand that tenant retention is the most valuable thing they can achieve in this market will be the ones who come through the next few years in the strongest position.”

For landlords, this means recognising that long-term tenant retention is a strategic advantage. Emphasising communication, responsiveness, and mutual respect can help secure tenants who are more likely to remain indefinitely.

Impact of the Renters’ Rights Act on tenant expectations

The report’s timing coincides with the introduction of the Renters’ Rights Act (RRA) on 1 May 2026, which brings structural changes to tenancy agreements, notably the move towards periodic tenancies. The survey indicates that this legislative change is already influencing tenant expectations: approximately 24% of tenants say the shift to periodic agreements makes them expect to stay in their current home for longer.

Financial pressures also play a significant role in tenant decision-making. More than 70% of tenants report that financial issues affect where they live, with around a third stating these pressures greatly influence their choice of location. This suggests that affordability remains a critical factor alongside relationship quality.

Reduced tenant choice and evolving priorities

Nearly half of tenants surveyed reported having fewer accommodation options than a year ago, and 44% found it harder to locate a home within their budget. This reduction in choice is driving tenants to prioritise long-term suitability when selecting a property, with 52% citing this as their most important factor.

Younger tenants, particularly those under 34, are experiencing a marked shift in expectations. Some 42% of this group say their standards for what a rented home should offer have increased over the past year, reflecting changing lifestyle needs and market conditions.

Landlord preferences on tenancy duration

Landlords surveyed by LRG also expressed clear preferences regarding tenancy lengths. A majority (72%) favour tenants who remain indefinitely, while 28% prefer fixed-term agreements. Where fixed terms are chosen, landlords typically cite operational reasons such as rent reviews, redecorating, or tenancy renewals rather than a desire to regain possession of the property.

This alignment between tenant and landlord preferences for longer tenancies suggests a maturing rental market where stability benefits both parties. Landlords who adapt their management approach to support longer stays may reduce void periods and associated costs.

What this means for UK landlords

The findings underscore that tenant retention is increasingly driven by relationship quality rather than rent alone. UK landlords should prioritise building trust and open communication with tenants, recognising that this can lead to longer tenancies and greater financial stability.

With the Renters’ Rights Act encouraging periodic tenancies, landlords have an opportunity to foster ongoing engagement and responsiveness. Understanding tenant needs and adapting management practices accordingly will be vital to maintaining occupancy and reducing turnover in a challenging market.

Source: LRG Winter 2025/26 Lettings Report

Suggested internal link anchors

• tenant retention
• private rented sector
• lettings market trends
• periodic tenancies
• Renters’ Rights Act
• landlord-tenant relationships
• tenancy renewals
• tenant expectations
• affordability in renting
• long-term tenancies
• landlord communication
• tenancy management

TLA update

TLA is launching a new Trusted Partners Hub in Q1 2026, featuring verified and approved service providers selected to support landlords, tenants, and property management businesses. We are inviting legal, trades, insurance, financial, mortgage, tenant screening, and other service providers to register their interest here: https://landlordassociation.org.uk/become-a-tla-service-partner/