Tenant relationships with landlords and letting agents rank as the primary factor influencing long-term tenancy retention, according to research from estate agency group LRG.

The group’s Winter 2025/26 Lettings Report found that 68% of renters identified these relationships as the most important consideration when deciding whether to remain in their current property. This figure exceeds other factors including feeling settled in the area (50%), stability in personal circumstances (45%), and confidence in maintenance and management handling (44%).

Landlord preferences align with tenant behaviour

The research indicates landlords share similar preferences for longer tenancies. Some 72% of landlords stated they prefer tenants who remain in a property indefinitely, compared with 28% who favour fixed-term arrangements. Among those preferring fixed terms, the primary motivations cited were to facilitate rent reviews, redecorating or tenancy management, rather than to regain possession.

The findings emerge as the private rented sector prepares for changes under the Renters’ Rights Act, which will introduce periodic tenancies as the default structure, replacing fixed-term agreements. According to LRG’s data, 24% of renters anticipate remaining in their current home for longer once periodic tenancies are implemented.

Market constraints influence retention

Limited housing availability appears to contribute to tenant retention patterns. Nearly half of respondents reported having fewer accommodation options compared to a year earlier, whilst 44% indicated increased difficulty finding properties within their budget. The report also noted a shift in tenant priorities, with 52% stating that long-term suitability now outweighs cost considerations when selecting a home.

Allison Thompson, National Lettings Managing Director at LRG, stated: “The rental market is growing up. Tenants are not just looking for somewhere to live. They are looking for somewhere to settle.” Thompson added that landlords who prioritise tenant retention “will be the ones who come through the next few years in the strongest position.”

The data suggests the rental sector is experiencing a shift towards longer-term occupancy patterns, driven by both tenant preferences and market constraints, ahead of regulatory changes affecting tenancy structures.

By admin