House Prices:

Claims that migration has added 20% to UK house prices have been disputed, but official statistics now seem to confirm that the claim by Dominic Raab was in fact correct.

Mr Rabb the housing minister says he has been vindicated after an official report showed he was correct when he said that immigration had pushed property prices up.

The housing minister faced severe criticism after he made the claim that net immigration had added 20 per cent to house prices over the last 25 years.

- Advertisement -

But official figures released last week appear to show that in actual fact, the increase has been higher at 21 per cent.

The Ministry of Housing, Communities and Local Government (MHCLG) using a model developed by the University of Reading, discovered that the increase in the number of immigrants living in England between 1991 and 2016 has added an extra £11,000 to average house prices, in real terms.

However, the figure is still disputed by some, with economist Jonathan Portes, Professor of Economics and Public Policy at the School of Politics & Economics of King’s College, London, saying this is ‘worse than the back of an envelope’ calculation.

The controversy came about following Mr Raab’s comments expressed to the Migration Advisory Committee and a report publish by it to help the Government formulate new immigration plans.

Mr Rabb had said:

“I welcome this transparency. Our top priority is driving the reform to deliver the homes Britain needs. But demand matters too, and immigration affects demand.”

The calculations produced by the University of Reading, show the overall population grew from 47.1million to 54.5million in England over the last 25 years. This it claims led to an overall increase of £17,000 for average house prices.

The UK residential foreign-born population grew from 3.5million to 8.4million during the 25 year period, which has accounting for two-thirds of overall population growth. If these figures are correct it means that immigration accounts for 21 per cent of the population-related increase on house prices, which Rabb is claiming.

Yvette Cooper the Commons home affairs committee chair had accused Mr Raab of ‘undermining trust’ on the debate on immigration by initially refusing to publish his calculations, but Mr Raab has since reaffirmed his statement following the release of the official figures saying:

“In the last 25 years we have seen immigration put house prices up by something like 20 per cent.”

©LandlordZONE® – legal content applies primarily to England and is not a definitive statement of the law, always seek professional advice.

5 COMMENTS

  1. My comment was simply to expose the fundamental lies these pro EU liars tell. These globalists need who to destroy our national sovereignty and the very concept of the Nation State what better way to do it than flood the country with aliens? . Tony Blair in Hansard said it would be 13,000. 5 million later. lol

  2. More houses also requires more infrastructure, particularly medical, education, and transport.

    One problems with housing is also the gravy train that smothers moving home. A solicitor is financially rewarded if he dissuades a purchaser to proceed. That many not be the prime motivation, but the nudge is there. The cost of moving today equals the purchase price of the average home half a century ago. The time taken for the legalities has also been inflated. VAT and stamp duty spread some of the gravy to government, so they are motivated to encourage it, even if there isn’t deliberate intent.

    It is all very well having regulations that make homes more efficient, safer, and more comfortable. But if it also makes it impossible for most people to afford them, what is the point?

  3. Developers will only build properties that have the biggest profit margins. The shortage is in the starter/retirement properties.Until local authorities enforce the affordable home rules it isn’t going to happen.

LEAVE A REPLY

Please enter your comment!
Please enter your name here