New analysis from LegalforLandlords has highlighted the potential implications for the UK rental market if closer ties with the EU make it easier for European workers to come to the UK.
The research follows calls from Andy Burnham for closer ties with the EU, and LegalforLandlords says rising demand and falling supply could cause turbulence for the wider property market.
Burnham has said he is “unable to rule out” increased freedom of movement for EU citizens, which could make it easier for them to come and work in the UK. While this could help address labour shortages in sectors such as healthcare and construction, LegalforLandlords says a rise in workers could also create additional demand for rental accommodation when supply remains below pre-Brexit levels.
Demand up, supply down in the UK rental market
The analysis compares rental market data from the three quarters before Brexit, Q2 to Q4 2019, with the latest figures covering Q1 to Q3 2026. LegalforLandlords calculated rental demand by measuring rental listings against those that secured a tenant, averaged across three-month periods.
Average demand stood at 23.6% before Brexit and has since risen to 25.5%. LegalforLandlords says this could be read as good news, with the UK rental market showing resilience despite Brexit and despite recent concerns over the introduction of the Renters’ Rights Act.
Supply tells a different story. Over the same period, the average baseline number of available rental listings fell from an estimated 160,517 to an estimated 123,797, a decrease of 22.9%. That raises questions about the sector’s capacity to accommodate extra demand from changes to migration and employment policy.
The issue also bears on Burnham’s housebuilding ambitions. Brexit-related labour shortages have been cited as a challenge to construction and council housebuilding plans, but if improved access to EU labour increased the number of people seeking rental accommodation, it could add pressure to a UK rental market with fewer properties available than before Brexit.
“Closer ties with Europe could offer real benefits to the UK, particularly for industries such as construction that need access to skilled workers,” said Sim Sekhon, group chief executive of LegalforLandlords. “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.”
