"Landlord behaviour is shifting. Expansion is no longer the default strategy" - HTB comments on ONS Private Rent and House Price data

18 February 2026

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

“While rental growth has moderated, the supply and demand imbalance remains firmly in place. Tenant demand continues to outstrip available stock, and landlord confidence is under pressure. In a market this finely balanced, even a modest reduction in supply can translate quickly into renewed upward pressure on rents.

“Landlord behaviour is shifting. Expansion is no longer the default strategy. Many smaller investors are reassessing exposure where returns have been eroded by taxation and regulation, and some are choosing to exit selectively. At the same time, more professional landlords are consolidating and repositioning rather than retreating. There is a clear move towards assets that offer stronger income resilience, including HMOs, semi-commercial and mixed-use property. Incorporation remains a consistent trend, but it introduces complexity around structuring, tax planning and long-term funding.

“These adjustments are changing the shape of funding demand. Landlords are not simply refinancing at maturity. They are releasing capital selectively, restructuring ownership, consolidating borrowing and adapting portfolios to reflect tighter regulatory requirements. That requires assessment based on judgement and experience, particularly where portfolios span multiple assets or income models.

“A sustainable rental sector depends on confidence and clarity. If policy, taxation and funding conditions continue to feel uncertain, investment decisions will remain cautious. Over time, that caution feeds directly into supply. Stability in the rental market depends on consistent signals and finance that supports long-term viability.”