Landlords could face surging demand for homes if closer ties with the EU bring more European workers to Britain, which has fewer advertised properties currently available to rent than before Brexit.
LegalforLandlords has examined the possible consequences for the housing market following Prime Minister Andy Burnham’s calls for closer relations with Europe.
Its analysis compares demand and available listings before Brexit with figures covering the first three quarters of 2026, finding higher demand alongside a fall in advertised supply.
The firm’s group chief executive, Sim Sekhon, has called for housing policy to take account of the accommodation needed by workers coming to the UK.
Housing demand pressures
Mr Sekhon said: “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.”
He added: “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.”
Fewer homes to rent
The research puts average demand for homes to rent at 25.5% in the first three quarters of 2026.
That compares with 23.6% across the second, third and fourth quarters of 2019.
The demand was calculated by comparing property listings with those that secured a tenant, with the results averaged across the three-month periods.
For supply, the analysis used the estimated average baseline number of available listings, which fell from 160,517 in the pre-Brexit comparison period to 123,797 in 2026.
That amounts to a fall of 22.9% in advertised availability, prompting the firm to question how much additional demand the sector could accommodate if migration and employment policy changed.
EU workers and housing
Mr Burnham has said he is ‘unable to rule out’ increased freedom of movement for EU citizens as part of closer ties, potentially making it easier for European workers to take jobs in Britain.
The analysis identifies healthcare and construction as sectors where access to more workers could help address labour shortages.
It also links the issue to his housebuilding ambitions, citing Brexit-related labour shortages as a challenge to construction and council housebuilding plans.
However, LegalforLandlords warns that workers arriving to help build homes would themselves need accommodation, potentially adding to demand while fewer properties are available to rent.
Keeping landlords in business
Mr Sekhon said: “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.”
The firm’s call is for migration, construction and housing policy to be considered together, including the role of existing landlords in maintaining the supply of homes to rent.
More tenants, fewer homes
The managing director of Accommodation for Students, Simon Thompson, said: “While extra tenant demand from the EU might reduce voids, that stronger interest cannot compensate for rising costs.
“Bringing builders into Britain makes sense but expecting to have lots of accommodation available without encouraging investment looks less convincing.”
He added: “I think landlords would welcome practical incentives alongside clearer housing policy before considering another property purchase.
“The government should explain where incoming workers will live while its promised homes remain on drawing boards.”
