High levels of immigration are fuelling Britain’s housing crisis, according to the Bank of England’s chief economist, who blamed skyrocketing rents on a shortage of properties.
Huw Pill said higher interest rates were not responsible for record hikes in rental costs, which jumped by 9.2pc in the year to March.
He said “quite large increases in immigration” were piling more pressure on Britain’s housing stock, after net migration hit a record-breaking 745,000 in 2022.
In comments made after the Bank of England held rates at 5.25pc for a sixth consecutive meeting on Thursday, Mr Pill said: “The population is growing.
“To some extent, the rents are really a reflection of supply and demand factors [and] reflect things that aren’t to do with monetary policy.”
A shortage of houses stems from delays in the planning sector, Mr Pill said, which has long been a source of concern for Britain’s biggest developers.
By arguing that monetary policy is not to blame for the housing crisis, he pushed responsibility towards politicians.
He added: “We don’t really build enough houses in this country. And the reason we don’t build enough houses or housing in this country is in large part [because] there’s a lot of issues around planning and so forth.
“So there’s a restraint on supply, which I think probably is not coming from monetary policy, it’s coming from other policy choices.
“And at the same time that is facing – and increasingly so – in recent times, increasing demand.”
His comments come after Andrew Bailey, the Bank’s Governor, has previously said that higher taxes have forced landlords to sell their properties in the face of higher interest rates.
This has increased financial pressures on tenants by driving up rents.
UK Finance data show the number of buy-to-let mortgages in arrears more than doubled in the first quarter of 2024, compared to the same period a year earlier.
Mr Pill admitted that “incentives” for landlords to rent out properties were reduced by higher borrowing costs, but added that higher rates had also made investing in other assets more attractive.
A report by the Centre for Policy Studies this week warned that record levels of immigration had failed to boost the economy while making the housing crisis worse.
The report, which was backed by former immigration minister Robert Jenrick, said migration now accounted for around 89pc of the 1.34m increase in England’s “housing deficit”.
This represents the number of homes the country has underbuilt in the last 10 years.
Calm_Error153 on
Bring 600k, build 100k, let the 500k fight on the existing stock.
Profit (if you were owner prior)
Edit: checked the numbers of houses built and its closer to 40k lol
In 2022, 44,940 new homes were completed, with 48,758 new housing developments started in the first quarter of 2007 being the last record set. (Source: “Record Number Of New Houses Being Built”)
essex-scot on
The wokerati will be branding him a racist next.
That should fix it eh?
Pryapuss on
cant get a house, cant get a doctor, cant get a dentist, cant build a train line.
ONS predicts 6 million migrants over the next 10 years
Guys. I know you dont want to think that immigration might have negative impacts. Just think how bad the traffic is going to be.
MrPloppyHead on
As opposed to 14 years of incompetent government strategy? I suppose all we will get from now until the election is a mountain of immigration misinformation an culture war bullshit from the right wing media.
Immigration is not feeling the housing crisis. Sitting in your arse and letting self interested house building companies determine government policy does though.
SoggyWotsits on
It says we don’t build enough houses, but everywhere you look green space is being concreted over to do just that. Small villages are bursting at the seams with no increase in doctors or school spaces. Better that we pick and choose the best and brightest to come here, rather than anyone who fancies it and their entire family.
Effective-Ad-6460 on
Yeah because we are going to trust a guy paid by the banks …. mhm for sure
Nothing to do with politicians systematically dismantling the country to benefit their own bank accounts
FaceMace87 on
I feel like articles like this are wasted on this sub, according to many here everything else is to blame for Britain’s problems apart from rampant immigration.
GorgieRules1874 on
It’s clearly contributing yes. Doesn’t take a genius to work that out.
luxway on
Says the guy who doubled all our mortgage/rent costs
Apprehensive_Bus_543 on
I didn’t hear a single landlord say they were putting up the rent due to immigration. Increase in mortgage rates was all I ever heard.
StatisticianOwn9953 on
They issue north of one million visas every year and put all their effort into getting people to pay attention to tens of thousands of people coming over on small boats. You couldn’t make up this level of audacity. The Tories think their constituents are thick as shit, and they are right!
12 Comments
Article text –
High levels of immigration are fuelling Britain’s housing crisis, according to the Bank of England’s chief economist, who blamed skyrocketing rents on a shortage of properties.
Huw Pill said higher interest rates were not responsible for record hikes in rental costs, which jumped by 9.2pc in the year to March.
He said “quite large increases in immigration” were piling more pressure on Britain’s housing stock, after net migration hit a record-breaking 745,000 in 2022.
In comments made after the Bank of England held rates at 5.25pc for a sixth consecutive meeting on Thursday, Mr Pill said: “The population is growing.
“To some extent, the rents are really a reflection of supply and demand factors [and] reflect things that aren’t to do with monetary policy.”
A shortage of houses stems from delays in the planning sector, Mr Pill said, which has long been a source of concern for Britain’s biggest developers.
By arguing that monetary policy is not to blame for the housing crisis, he pushed responsibility towards politicians.
He added: “We don’t really build enough houses in this country. And the reason we don’t build enough houses or housing in this country is in large part [because] there’s a lot of issues around planning and so forth.
“So there’s a restraint on supply, which I think probably is not coming from monetary policy, it’s coming from other policy choices.
“And at the same time that is facing – and increasingly so – in recent times, increasing demand.”
His comments come after Andrew Bailey, the Bank’s Governor, has previously said that higher taxes have forced landlords to sell their properties in the face of higher interest rates.
This has increased financial pressures on tenants by driving up rents.
UK Finance data show the number of buy-to-let mortgages in arrears more than doubled in the first quarter of 2024, compared to the same period a year earlier.
Mr Pill admitted that “incentives” for landlords to rent out properties were reduced by higher borrowing costs, but added that higher rates had also made investing in other assets more attractive.
A report by the Centre for Policy Studies this week warned that record levels of immigration had failed to boost the economy while making the housing crisis worse.
The report, which was backed by former immigration minister Robert Jenrick, said migration now accounted for around 89pc of the 1.34m increase in England’s “housing deficit”.
This represents the number of homes the country has underbuilt in the last 10 years.
Bring 600k, build 100k, let the 500k fight on the existing stock.
Profit (if you were owner prior)
Edit: checked the numbers of houses built and its closer to 40k lol
In 2022, 44,940 new homes were completed, with 48,758 new housing developments started in the first quarter of 2007 being the last record set. (Source: “Record Number Of New Houses Being Built”)
The wokerati will be branding him a racist next.
That should fix it eh?
cant get a house, cant get a doctor, cant get a dentist, cant build a train line.
ONS predicts 6 million migrants over the next 10 years
[look](https://www.bbc.co.uk/news/uk-68139947#:~:text=The%20Office%20for%20National%20Statistics,500%2C000%20more%20births%20than%20deaths)
Guys. I know you dont want to think that immigration might have negative impacts. Just think how bad the traffic is going to be.
As opposed to 14 years of incompetent government strategy? I suppose all we will get from now until the election is a mountain of immigration misinformation an culture war bullshit from the right wing media.
Immigration is not feeling the housing crisis. Sitting in your arse and letting self interested house building companies determine government policy does though.
It says we don’t build enough houses, but everywhere you look green space is being concreted over to do just that. Small villages are bursting at the seams with no increase in doctors or school spaces. Better that we pick and choose the best and brightest to come here, rather than anyone who fancies it and their entire family.
Yeah because we are going to trust a guy paid by the banks …. mhm for sure
Nothing to do with politicians systematically dismantling the country to benefit their own bank accounts
I feel like articles like this are wasted on this sub, according to many here everything else is to blame for Britain’s problems apart from rampant immigration.
It’s clearly contributing yes. Doesn’t take a genius to work that out.
Says the guy who doubled all our mortgage/rent costs
I didn’t hear a single landlord say they were putting up the rent due to immigration. Increase in mortgage rates was all I ever heard.
They issue north of one million visas every year and put all their effort into getting people to pay attention to tens of thousands of people coming over on small boats. You couldn’t make up this level of audacity. The Tories think their constituents are thick as shit, and they are right!