Contrary to widespread forecasts of mass portfolio liquidation, the UK private rental sector has maintained equilibrium in the months following the Autumn Budget, according to fresh analysis from LRG.

LRG's Winter 2025/26 Lettings Report, drawing on comprehensive surveys of property owners and renters throughout England and Wales, reveals that a majority of landlords—51%—intend to either sustain their current holdings or pursue expansion despite recent fiscal adjustments.

Tenant payment capacity and retention of quality occupants emerged as the primary consideration for 46% of landlords when determining rental pricing, outweighing operational expenses, compliance requirements, and taxation concerns. Approximately half of property owners maintained static asking rents throughout the preceding twelve months.

The research underscores a notable divergence between rental and sales market dynamics. While property sales participants exhibited indicators of renewed momentum, one-third of lettings respondents reported unchanged confidence levels, with minimal strategic pivots observed. The relative absence of Budget-related disruption was identified by 38% of survey participants as the predominant factor shaping their forward planning.

Independent market data corroborates this narrative of sectoral stability. UK Finance documented a 22.7% year-on-year increase in new buy-to-let mortgage origination during Q3 2025, with average gross rental yields reaching 7.15%. LRG's examination of Companies House filings indicates that 67,114 new limited companies were registered under the buy-to-let Standard Industrial Classification code throughout 2025, representing a 21% uplift from 2024 figures.

The sector is experiencing consolidation among established operators. The 2024 English Private Landlord Survey determined that landlords controlling five or more properties now represent 49% of all tenancies while constituting just 17% of the landlord population. Additionally, the proportion operating through corporate structures has nearly doubled since 2018.

On the supply side, market tightening appears imminent, with nearly two-thirds of landlords anticipating reduced property availability over the coming year. Despite these supply constraints, landlords continue to prioritize tenant affordability over aggressive rent escalation strategies.

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."