Chancellor Rachel Reeves has been warned that unless more rental properties are built her recent promise to ‘attract the best talent to the UK’ and boost economic growth will fall flat.

The chiefs of the British Property Federation, the National Residential Landlords Association and Propertymark have warned in a letter to Reeves that unless her Government makes urgent moves to boost the supply of homes to rent, talented foreigners hoping to work here will be unable to find somewhere to live.

Estate agency Savills recently echoed this call, highlighting how the UK will need an extra one million private rented homes by 2031 just to keep up with demand.

Foreign talent

According to data from Oxford University’s Migration Observatory, 42 per cent of the foreign-born population in the UK live in the private rented sector, compared to 16 per cent of those born in the UK. Among those born in the European Union, 52 per cent live in private rented accommodation.

The joint letter also says it signatories are worried that housing supply will be further reduced by the Chancellor’s recent decision to raise stamp duty by 1% for landlords, something the Institute for Fiscal Studies has warned will lead to “fewer properties” being made available.

The chief executives of the three organisations Melanie Leach, Nathan Emerson and Ben Beadle (LtoR main image) add that: “We support the Government’s ambition to grow the economy and welcome international expertise to the UK. However, policy needs to back up the rhetoric.

“Without substantial support to boost the supply of new, high-quality homes to rent, the Chancellor’s efforts to attract global talent will fail.

“We urge the Government to engage with the sector to develop forward-thinking policies that provide the homes to rent the country desperately needs.”