HTB comment on Private Rent and House Price data

18 December 2024

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

“The rental market remains under intense pressure, with demand significantly outpacing supply. Recent figures from Pegasus Insights show that eight in ten landlords reported strong tenant demand in Q3, and Propertymark’s data highlights an average of nine prospective tenants competing for each available property. Without a notable increase in supply - and that doesn’t appear imminent - this imbalance will continue driving rents higher. I fully expect to see new rental records set in 2025.

“Despite the Stamp Duty changes announced in the Budget, property investment still makes a great deal of sense, particularly for those focusing on refurbishment or conversion projects. These strategies not only help maximise rental yields but also make better use of existing housing stock to meet the strong demand for quality homes. With limited progress on new builds, unlocking the potential of existing properties will be key to meeting tenant needs in the year ahead.”