HTB comments on ONS Private Rent and House Prices data

15 January 2025

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

“Rents are climbing fast, and there’s no sign of this slowing. The latest ONS data is yet another reminder of just how out of balance the rental market is. Rightmove’s recent figures show that enquiries per rental listing are almost double what they were before the pandemic, while Propertymark’s Housing Insight Report highlights that letting agents now juggle around seven prospective tenants for every available property. With this ongoing disparity, 2025 looks set to be a record-breaking year for rents.

“For property investors, this surge in rental prices offers a real opportunity. Even with the higher Stamp Duty rates, focusing on projects that maximise rental yields, such as refurbishment or conversion schemes, could deliver significant returns. For lenders, staying flexible and offering tailored solutions will be key to supporting landlords with these more complex cases.

“With home ownership increasingly out of reach, a strong and stable rental market has never been more essential. But landlords will need the right support to deliver for tenants.”