{"id":41976,"title":"UK rental market under pressure as immigration grows","publisher":"Stockmark.IT","author":"Stockmark.IT Website","published":"2025-06-05T05:09:32+00:00","modified":"2025-06-05T05:09:32+00:00","canonical_url":"https://stockmark.it/uk-rental-market-under-pressure-as-immigration-grows/","markdown_url":"https://stockmark.it/uk-rental-market-under-pressure-as-immigration-grows.md","json_url":"https://stockmark.it/uk-rental-market-under-pressure-as-immigration-grows.json","category":"Housing","categories":["Housing","Immigration"],"featured_image":"https://i0.wp.com/stockmark.it/wp-content/uploads/housinguk.jpg?fit=1024%2C576&quality=89&ssl=1","format":"news","language":"en-GB","content":"The UK rental market is facing increased strain as population growth and rising immigration levels generate higher demand for rental properties. Nigel Terrington, Chief Executive of Paragon Banking Group, has highlighted that the country lacks sufficient landlords to support the growing population, which is projected to increase by another four million people by 2032.\n\nTerrington noted that many new immigrants initially rent rather than buy properties, which puts further pressure on the already stretched rental sector. He explained, “The potential is that it gets worse from here because the UK population is expected to grow largely due to immigration, and immigrants tend to rent when they arrive.”\n\nDespite concerns over legislative changes, Paragon has expanded its buy-to-let lending. The FTSE 250 lender reported a 25.1 per cent surge in new landlord loans, rising from £649.3 million to £812.2 million during the six months ending March 31. The company also announced a 26.7 per cent increase in statutory profit before tax, which reached £140.1 million compared to £110.6 million previously.\n\nParagon has successfully grown its market share, partly by introducing a new broker-focused platform to attract more mortgage customers. However, the firm continues to monitor the progress of the Renters’ Rights Bill, which aims to introduce tenant-friendly measures such as an end to no-fault evictions, restrictions on advance rent payments, and mechanisms for tenants to challenge rent increases.\n\nIn a statement, the company confirmed active engagement with the government and industry bodies regarding the private rental sector’s evolving regulatory framework. Despite the legislative challenges, analysts from Peel Hunt praised Paragon’s strong performance, noting the bank’s shares have risen by nearly 30 per cent in the year to date.\n\nParagon plans to continue rewarding investors, with an additional £50 million share buyback programme announced, following an earlier scheme of the same value. The company’s shares closed up 6.5p, or 0.7 per cent, at 909p, reflecting strong market confidence in its buy-to-let strategy and operational efficiency.\n\nAs demand for rental housing intensifies and regulatory changes loom, industry experts highlight the urgent need for more landlords to stabilise the UK rental market and manage soaring prices."}