HTB comments on ONS Private Rent and House Price data

17 December 2025

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

“While the pace of rental growth has slowed, 2025 still delivered significant increases, underlining how stretched the private rental sector remains. That pressure is not easing. The recent Budget has added to it, with the government’s own figures showing 2.4 million landlords will face higher taxes by the end of this Parliament. For some, that could be the point they call time on their portfolios.

"Regulatory change continues to build. From energy standards to tenancy reform, landlords are being asked to adapt at speed, often without clarity. The Renters’ Rights Act will be another major shift in how property is owned and managed, and we are already seeing investors respond.

"There is a clear move towards more complex asset types such as HMOs, semi-commercial units and mixed-use portfolios. That shift is not just about chasing yield. For many, it is about finding a way to stay in a sector that is getting harder to navigate. Brokers are seeing it play out on the ground every day.

"Improving standards is the right ambition, but there is a line between raising the bar and pulling the rug. If pressure continues to build without recognition of the consequences, we risk weakening the very market people rely on. That is not a policy warning. It is already happening.”