Response to ONS Rental Index from Hampshire Trust Bank

16 July 2025

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

“Yes, rents are still rising, but the pace has eased compared to last year. The mismatch between supply and demand remains the main driver, although there are early signs of the market starting to rebalance. Propertymark’s figures illustrate that shift, with an average of seven applicants now chasing each rental property, down from ten at the peak.

The question is what comes next, particularly as the Renters’ Rights Bill moves closer. It is already prompting many landlords to reconsider their plans. Some have decided to exit the sector altogether, which only increases pressure on available stock. Others are exploring how to adapt, whether that means rebalancing their portfolios, investing in improvements or preparing for a more regulated environment.

Part of this adjustment is about the market finding a more sustainable footing after several years of strong growth and affordability pressures. Some landlords have absorbed rising costs for longer than was practical. That is why we are seeing a gradual shift towards professional landlords with longer-term strategies and a focus on quality assets.

For brokers, this is a period when clear advice matters. Landlords will need support to understand the practical implications of the Bill and to secure funding strategies that fit the changes ahead.

Over time, the conversation has to move beyond rent levels. Increasing housing delivery is important, but it must be the right kind of supply. New homes need to meet the needs of tenants as well as buyers. A healthy housing market depends on a rental sector that remains accessible and affordable, and achieving that will require planning, targeted investment and a clear commitment to delivery.”