HTB comments on ONS Private Rent and House Prices data

20 November 2024

Alex Upton, Managing Director, Specialist Mortgages & Bridging at Hampshire Trust Bank:
“Rents have risen substantially over the past year, and the latest Office for National Statistics data confirms it. Demand for rental properties continues to outstrip supply, and we’re likely to see this trend drive rents even higher in the coming months. Propertymark’s figures show there are around 10 prospective tenants for every rental property available through the average letting agent. Unless there’s a meaningful increase in supply—which isn’t on the horizon—this competition will keep pushing rents up.

“The uncertainty around the Budget made some investors pause, waiting to see if any tax changes would impact their plans. Now that the Government’s intentions are clear, and with the Bank of England’s recent base rate cut, investors have the clarity they need to pick up those paused deals. I expect we’ll see a renewed push in buy-to-let activity as landlords look to meet the strong demand in the rental market.”