EU Migration Costs
We are continually told by the government that immigration is good for the economy. True, but not the entire picture.
High levels of migration from new EU countries have pushed UK rental growth to its highest level in eight years, the latest Royal Institution of Chartered Surveyors lettings survey has found.
They are selling this as a great opportunity for property investors, which of course it is. First time buyers might not agree.
First-time buyers will find it hard to enter the housing market with higher rents making it difficult to save sufficient sums for a deposit.
Government lies and spin over this issue are legion. It is no surprise that the public is no longer willing to believe them.
3 comments:
The combination of low interst rates and completely quality unfiltered immigration has created the crash in housing affordability.
Coincidentally the increase in debt and the rise in the immigrant population can both be seen as an increase in gearing i.e. broad economic risk.
Were a recession to come to the U.K. those immigrants who arrived so easily, can leave just as easily. This would cause a massive problem for BuyToLetters as they would have to either pay the mortgage on the void or drop rents. With house affordability so low, and interest rates rising (because of 13.5% M4 causing inflation) the rental yeild is actually very similar to interest rates.
the rental yeild is actually very similar to interest rates.
But Buy to Rent investors will largely ignore reality, in favour of stampede.
> But Buy to Rent investors will largely ignore reality, in favour of stampede.
And then when their numbers suffer a huge wave of bankruptcy thye will demand the government does something (i.e. take money from taxpayers who weren't stupid)!
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