New Study Shows House Prices Are Driven Down In Areas Full Of Migrants
Out of control immigration figures are driving down UK house prices, according to a new economic study.
Dr Nils Braakmann identified two reasons for his findings – which contradict the belief that migrants push prices up.
He says people leave areas as immigrants move in. Properties are left empty and in disrepair and then have to be sold cheaper.
Poorer migrants tend to live in crowded conditions to keep costs down. This depresses values because there is no question of demand outstripping supply.
By contrast, many experts have claimed an influx of eastern Europeans in the past decade is a main cause of raised prices.
The research by Dr Braakmann of the University of Newcastle focused on local areas rather than the national picture.
London is the main destination for migrants to the UK and has by far the worst housing affordability problems.
This suggests high levels of new arrivals in the capital help keep housing more affordable than it would otherwise be.
The new data reinforces findings in a paper presented last year to the Royal Economic Society by Filipa Sa, of Trinity College Cambridge. It compared employment figures with Land Registry records.
She found immigration equal to one per cent of a local population was linked to a 1.6 per cent fall in property values. This was because 0.9 per cent of the locals moved out – usually wealthier people.
“You would of thought somebody in Government would of realised this before now and needed a study done by a University” says Greengates Builders Merchants Accrington, Lancashire.