Closer EU ties could squeeze rental supply, landlords warned

Closer ties to the EU could put further pressure on the rental market, experts warn.

As Andy Burnham calls for closer ties with the EU, new analysis from LegalforLandlords reveals that increased rental demand and decreased supply could mean it causes major turbulence for the property market.

Closer ties to the European Union (EU) may not be good news for landlords, according to new warnings.

It comes as Prime Minister Andy Burnham has hinted at a closer relationship with the EU and hasn’t ruled out supporting a return to freedom of movement.

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.”

While this could help address labour shortages in sectors such as healthcare and construction, rental compliance specialists Legal for Landlords has warned that an increase in workers could also create additional demand for rental accommodation at a time when supply remains below pre-Brexit levels.

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%.

This could be read as good news if landlords need 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, representing a 22.9% decrease.

Wider implications

Sim Sekhon (pictured), 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.”