The Government has been warned that pressure on Britain's depleted rental market will intensify if Andy Burnham's push for a closer relationship with the European Union makes it easier for foreign citizens to come to the UK. A new analysis suggests any future deal that increases demand at a time of lower supply could cause "major turbulence".
Rental specialists LegalforLandlords warned that "supply remains below pre-Brexit levels". The average number of rental properties available has fallen by more than a fifth compared with the period before the UK left the EU, according to the firm.
Manifesto rules and EU summit
Labour's manifesto rules out a return to full free movement of people before the next election, but the Prime Minister has stated that full membership of the EU could be an option for the UK, and that he wants the country to return as a member state in the long term.
A new deal with the EU will be negotiated at a summit in Brussels on November 20, with a "new youth experience scheme" and "deeper co-operation on immigration" on the table. LegalforLandlords is warning about the "rental sector's capacity to accommodate any additional demand arising from changes to migration and employment policy".
Industry and political reaction
Chief executive Sim 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.
"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."
Mr Burnham told MPs this month that while the manifesto will be "fully respected" the "options that are available for the long-term relationship" must be examined and there are "no assumptions".
Government response
Deputy Reform UK leader Richard Tice said: "This Government is already light years off its fantasy 1.5million homes target. Now it wants to pile even more pressure on our broken housing market.
"Any backsliding on freedom of movement by open-borders-Burnham would be a total betrayal of the Brexit vote and amplify the chaos mass uncontrolled immigration is already causing across Britain."
A government spokesperson said: "The best way to ease pressure on the housing market is to build more homes, which is why we're boosting supply and investing £39billion in social and affordable housing. It is also wrong to suggest that a Youth Experience Scheme would be a return to 'freedom of movement'. It would be a targeted, time-limited, capped and mutual exchange scheme – offering young people in the UK the opportunity to live, work and study in the EU."
