HTB comments on ONS Private Rent and House Price data

16 April 2025

Alex Upton, Managing Director – Specialist Mortgages & Bridging, Hampshire Trust Bank:

“The rental market remains under significant pressure, with demand continuing to outstrip supply. Letting agents are managing multiple applicants for every available property. While stock levels have seen some movement, competition remains fierce. Until that imbalance shifts, rental prices will continue to rise.

“At the same time, the Renters’ Rights Bill is adding uncertainty for landlords. Proposed changes such as the removal of Section 21 may prompt some smaller or more cautious landlords to exit the market altogether, further reducing already stretched rental stock.

“We are also seeing a shift. Professional landlords are reassessing their portfolios with a long-term view, targeting properties that deliver tenant appeal and resilient yields. Refurbishment is playing a bigger role, helping to reposition or upgrade underused assets and bring more quality homes back into circulation.

“To support this effectively, lenders need to step up. Refurbishment is not a one-size-fits-all exercise. It requires funding that is structured around the deal, not just the asset class. Without that kind of flexibility, unlocking supply at scale becomes far harder.”