UK property website Zoopla recently pointed out that due to a surge in the number of new immigrants, rents across the UK are expected to continue rising significantly, exacerbating the issue of housing supply shortage. This phenomenon will bring more challenges and uncertainties to the UK rental market.

Richard Donnell of Zoopla explained that the supply of available rental properties has not increased, coupled with the historically high number of new immigrants, these factors together are driving a rapid increase in rents. According to data released by the UK's Office for National Statistics (ONS), the net migration figure for the UK reached a record-breaking 745,000 in 2022.

During the two years ending in June, approximately 1.3 million people moved to the UK. Donnell pointed out that as many as 90% of these recent immigrants require rental accommodation. ONS data released on December 1st showed that rental prices in the UK rose by a record-breaking 8.4% in the year ending October.

In addition to the surge in the number of new immigrants, the UK housing market faces several other pressures. Firstly, more people working remotely and a robust job market have stimulated rental demand. Secondly, high mortgage rates have forced more people to extend their rental periods, delaying home purchases.

Furthermore, the addition of 263,000 international students poses a challenge to the rental market when faced with insufficient purpose-built student accommodations.

Approximately one-tenth of landlords are considering or have already started selling properties due to regulatory and tax pressures, along with declining profits. Meanwhile, new investors show a lack of enthusiasm for entering the rental market, leading to a scarcity of new rental properties.

According to Zoopla's statistics, the total number of properties available for rent in the UK has remained at around 5.5 million over the past seven years, with little to no growth, while demand continues to rise.

These factors combined result in sustained rent increases across the UK, and the problem of housing supply shortage is worsening. In this scenario, the UK government needs to take measures to increase housing supply and alleviate the housing shortage situation.