HTB comments on ONS Private Rent and House Price data

17 June 2026

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

“The headline rate of rental inflation from the ONS does not tell the whole story in the private rented sector at the moment. Recent analysis from Hometrack highlighted a ‘two-speed’ rental market, where areas with rents below £1,250 per calendar month are still seeing much stronger rental growth than higher-cost locations. Much of that comes back to supply, particularly in areas where available stock has fallen sharply over recent years.

“That is feeding into the approach we’re seeing from landlords. We’re having far fewer conversations centred around expansion for the sake of growth and much more focus on portfolio quality and more dependable income. More experienced investors are still active, but they are becoming increasingly selective about the assets they take on and where they see opportunities to strengthen returns over time.

“We’re also continuing to see strong appetite for HMOs and mixed-use property, particularly where investors can improve income or reposition assets over the longer term. Those cases often involve more moving parts than a standard refinance or acquisition, which is why brokers are playing such an important role in helping investors work through funding and structure.

“For lenders, that means understanding the wider strategy behind the case rather than simply looking at the asset in isolation. Investors increasingly want funding that can adapt alongside changing portfolio priorities and support the direction they want to take over the next few years.”