HTB comments on ONS Private Rent and House Price data

21 January 2026

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

“While the latest ONS data shows a slowdown in rental growth, the underlying pressure has not gone away. Demand remains strong, supply is still tight, and that imbalance continues to feed through into pricing.

“Landlords are facing a growing list of considerations. The Renters’ Rights Act, combined with tax and cost pressures confirmed in the Budget, including changes to mortgage interest relief and dividend taxation, is prompting many to take a more strategic view of their portfolios. Some are moving into limited company structures, others are rebalancing into semi-commercial or mixed-use assets, and many are reshaping how their funding aligns with long-term plans.

“Brokers are playing a central role in this shift, helping landlords navigate complex changes, structure sustainable funding, and stay confident in a market that is becoming harder to predict.

“The private rented sector cannot function without adequate supply. Tenants rely on good-quality homes, but that supply depends on investors being able to operate with clarity and stability. If the combined effect of regulation, taxation and cost becomes too great, we risk seeing more landlords exit and availability fall further.

“For lenders, this puts the emphasis on flexibility, consistency and real-world structuring. Brokers and landlords need funding that reflects the dynamics of today’s market, from portfolio restructuring and reinvestment to more complex transitions between short-term and long-term funding. The focus must be on enabling good deals to progress, not defaulting to rigid criteria that reduce options. In a market shaped by structural change, specialist lenders have a critical role to play in supporting tailored, long-term solutions.

“Raising standards is essential. But if we want a rental market that remains accessible and resilient, we need a regulatory and funding environment that gives landlords and brokers the confidence to stay invested.”