LRG claims landlords are not walking away from the PRS

A letting agency claims landlords are not leaving the private rented sector but rather adapting to changes.

The Leaders Roman Group (LRG) report finds that 60% of landlords intend to maintain their portfolios, while 22% are considering exiting the market. LRG says these decisions are driven by rising operating costs rather than a lack of demand.

The report also says that tax reform and faster court processes would encourage landlords to grow their portfolios.

Strong sense of stability

According to LRG’s survey, 60% of landlords intend to maintain their current portfolio, which LRG say indicates a strong sense of stability in a changing market.

Nearly a quarter (22%) are considering exiting the market, but the survey shows these decisions are driven by rising operating costs rather than a lack of demand. LRG describe this as a market reshaping itself, rather than withdrawing.

Of those planning to sell, 12% say they will reinvest in another property, often choosing more modern, energy-efficient, or lower-maintenance homes. Meanwhile, only 7% plan to grow their portfolio.

LRG say this reflects a shift toward consolidation and long-term planning rather than expansion.

This is still a market with committed landlords

Allison Thompson, national lettings managing director at LRG, says rather than fully leaving the private rented sector, landlords are adapting their portfolios.

She said: “Landlords are not walking away from the sector. They are responding to a more complex environment with caution, clarity and long-term thinking.

“The story here is one of measured transition. This is still a market with committed landlords who want to provide good homes and make sound investments, but they need the right framework in place to do that with confidence. In a sector shaped by regulation, reform and demand-side pressure, landlords are not standing still, they are stepping forward with strategy.”

Landlords remain active and engaged

LRG says despite the legislative pressures, landlords remain active and engaged. The main influences on portfolio decisions include regulatory changes (27%), tax policy (26%) and mortgage rates (11%).

When asked what would encourage them to grow their portfolios over the next two years, landlords pointed to tax reform (59%), regulatory clarity (17%), faster court processes (14%) and more support with energy efficiency upgrades (10%).

The report also reveals certain property types are becoming more difficult to manage, with older homes cited by 54% of landlords as the most challenging, followed by leasehold flats (29%) and larger family homes (11%).

LRG says these findings reflect growing concern about regulatory complexity, energy upgrade obligations and the costs of leasehold flats.