Migration added 20 per cent to house prices

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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.

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.”

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