Editor's note: This brief was summarised by The Property AI Team from a report by The Negotiator. Read the original article for full details.
Closer EU Ties Could Squeeze UK Rental Supply, Landlords Warned
Closer ties to the European Union could put further pressure on the UK rental market, according to new analysis from LegalforLandlords. The rental compliance specialists warn that increased demand for rental accommodation, combined with supply that remains below pre-Brexit levels, could create major turbulence for the property market.
The warning comes as Andy Burnham calls for closer ties with the EU. According to the report, Burnham has hinted at a closer relationship with the EU and has not ruled out supporting a return to freedom of movement. That could help address labour shortages in sectors such as healthcare and construction, but LegalforLandlords cautions that an increase in workers could also create additional demand for rental accommodation.
What the Data Shows
The analysis compares rental market data from the three pre-Brexit quarters with the latest available figures covering the three quarters of 2026 so far. Rental demand was calculated by measuring rental listings against those that secured a tenant, with demand averaged across the three-month periods.
Before Brexit, average rental demand stood at 23.6%. In the more recent post-Brexit market, this has risen to 25.5%. Higher demand might appear positive for landlords needing to fill properties, but the research highlights that in the same period the average baseline number of available rental property listings in Britain fell from an estimated 160,517 to an estimated 123,797 — a 22.9% decrease.
Wider Implications for the Sector
Sim Sekhon, Group Chief Executive at LegalforLandlords, says this raises questions about the rental sector's capacity to accommodate any additional demand arising from changes to migration and employment policy.
He adds: "Closer ties with Europe could offer real benefits to the UK, particularly for industries such as construction that need access to skilled workers. But we also need to consider the wider housing implications.
"If more people come to the UK to work, they will need somewhere to live. With rental demand already higher than it was before Brexit and the number of available properties significantly lower, we cannot afford to overlook the pressure this could create.
"Addressing labour shortages and building more homes are important goals, but we also need a rental market with enough supply to support a changing workforce. Housing policy needs to consider the whole picture, and perhaps more needs to be done to incentivise buy-to-let landlords to remain in the sector, despite the recent pressures that have been placed on them."
Source: The Negotiator