Immigration and the UK's Housing Market

• Title: Immigration and the UK's Housing Market
• Author: PostcodeArea
• Date Created: 18 December 2024
• Number of Pages: 1

Details

Immigration drives UK housing demand, raising rents and prices while exposing critical supply shortages.

Immigration plays a pivotal role in shaping the UK housing market, influencing both supply and demand. Urban areas, where many migrants settle, experience heightened competition for housing, driving up prices and rents. Studies show that for every 1% increase in the migrant population, local house prices can fall, as higher-income residents move elsewhere.

The challenge lies in supply. While immigration boosts market activity, the construction of new homes hasn’t kept pace with demand.

Expert perspectives suggest that rising rents are driven by immigration’s demand for rentals, compounded by high mortgage rates keeping aspiring homeowners in the rental market.

This report unpacks these complexities and explores policy solutions to balance demand with supply.