"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"
- Allison Thompson - LRG
A strong relationship with a landlord or letting agent is the biggest factor that encourages tenants to remain in their rental home long term, according to new research. LRG's Winter 2025/26 Lettings Report finds that 68% of renters ranked this ahead of rent levels, location, or the quality of the property itself.
The findings highlight a trend that has often been overlooked in a market dominated by legislation, tax, and supply pressures: the most effective tool for tenant retention is human interaction.
Relationships matter most
When asked what would most encourage them to stay in one rental home, 68% of tenants said a good relationship with their landlord or agent. Other factors ranked lower: feeling settled in the area (50%), stability in personal circumstances (45%), and confidence in building management and maintenance (44%).
In a market where housing supply is tightening and options are limited, the quality of interactions between tenants and landlords is emerging as a key driver of retention.
Legislative changes are influencing behaviour
The timing of this research coincides with the introduction of the Renters’ Rights Act, which received Royal Assent in October 2025. Its most significant change is the move to periodic tenancies as the default, replacing fixed-term agreements.
LRG's data shows an early response to this shift: 24% of tenants now expect to stay longer in their current home because of the switch to periodic agreements. While this figure may seem modest, it signals that legislative intent and tenant behaviour are starting to align.
Cost pressures remain influential
Financial pressures continue to shape tenant decisions. More than 70% of tenants report that cost considerations influence where they live, with a third saying this factor has a major impact. Nearly half say they have fewer accommodation options than a year ago, and 44% find it more difficult to find homes that meet their budget. In such conditions, tenants who find a home that suits them are increasingly likely to stay.
Generational priorities are shifting
LRG’s data also shows a generational change in what tenants value. Long-term suitability now ranks above cost when choosing a home, cited by 52% of respondents. Among under-34s, 42% say their expectations for rental properties have risen in the past year, the highest among any age group. The youngest renters, entering the market amid high demand and limited supply, are also the most selective.
Landlords share similar priorities. LRG found that 72% prefer tenants who stay indefinitely, compared with 28% who prefer fixed-term arrangements. For those landlords who do favor fixed terms, the main reason is to manage rent reviews, redecorations, or tenancy renewals, rather than to regain possession. Landlords and tenants are moving toward the same goal: long-term stability.
Data confirms the trend
Independent sources reinforce this picture. The Deposit Protection Service reported that the average tenancy in England and Wales reached 1,085 days in 2025, nearly three years, up 40% since 2021. Zoopla’s rental market data shows 25% fewer properties available than in 2019, with demand roughly double pre-pandemic levels. In a market this tight, tenants who find a property that works are holding on to it.
The English Housing Survey provides additional context: 75% of private renters say their rental feels like home, and 78% say they feel secure from eviction. These figures indicate a sector that is largely settled and seeking stability.
The human element
LRG’s data adds a layer beyond statistics. Tenants stay not because of legislation or market pressures, but because their concerns are addressed promptly, repairs are handled efficiently, and they are treated as individuals rather than contracts.
Landlords retain good tenants not through incentives or higher rent, but through responsiveness, respect, and consistency. Successful rental relationships are grounded in communication, trust, and reliability—the same qualities that underpin any long-term relationship.
Allison Thompson, national lettings managing director at LRG, said, “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. The shift to periodic tenancies is bringing that aligned ambition to the surface. Our role as agents is to help create the conditions for long-term relationships to form and thrive. 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.”
