Comment on ONS Private Rent and House Price data from HTB

18 September 2024

Private Rent and House Price data from the Office for National Statistics (https://www.ons.gov.uk/economy/inflationandpriceindices/bulletins/privaterentandhousepricesuk/september2024)

Alex Upton, Managing Director, Specialist Mortgages, Hampshire Trust Bank

“Rents have continued to rise sharply, reflecting the ongoing shifts in the rental market landscape. With tenant demand remaining robust and rental stock not quite keeping pace, it’s no surprise that rents are climbing. As the Royal Institution of Chartered Surveyors (RICS) has noted, while more landlords are bringing properties to market, tenant demand is still outstripping supply. This imbalance is likely to push rents higher as we move forward.

“Rather than a mass exodus, what we’re seeing is a refinement of strategy among professional landlords who are keen to adapt to the evolving market. There’s growing interest in more specialist, higher-yielding investments—such as HMOs or semi-commercial properties—that can provide a better return on investment. Landlords are looking for ways to diversify and strengthen their portfolios, and they’re increasingly open to exploring different property types to achieve that.

“With the Budget approaching, there’s a lot of speculation about potential changes that could affect landlords. I’d like to see a focus on positive measures that encourage continued investment in quality rental housing and support the professional landlords who are committed to providing high-standard homes. The private rental sector is crucial to meeting housing demand, and it’s essential that we don’t lose sight of that.”