AOG
Blaming immigration for the housing shortages we see right now is too simplistic.
The reasons behind the issues are more complex than that.
1. Population growth in the UK stands at 0.8 per annum. Net immigration is responsible for 70% of that, so effectively immigration is responsible for 0.56% of total population growth. Additionally, we should remember that many people coming to the UK won't be adding to the demand on the private rental market, as they will move in with relatives already here.
2. Increasing life expectancy. Since 1980, life expectancy in the UK has increased by 2.5 years per decade for males and 2 years per decade for females. This means that someone born in 2015 is expected to live on average 7-9 years longer than someone born in 1980. As people continue to live longer, population growth will continue.
3. Decreasing average household size. When I was a child, it was extremely unusual for people in their early 20s or teens to buy their own place, or move into rental accommodation. They would live with their parents until they married. The 1950s saw an average of 5 people living per property. Today, this has decreased to an average of 2 people per property. A number of factors have driven this, including more people choosing to live alone, as well as increasing divorce rates over time. Fewer people living per property demands increased numbers of properties in the market.
4. Increased buy-to-let investors As more investors jump on the buy-to-let bandwagon, a larger proportion of housing stock is removed from the open market to be owned by investors for long-term rental. This decreases the available pool of housing stock to individuals purchasing property for owner occupation.
5. Fewer housebuilders. During the 2008 financial crisis many smaller housebuilders went bankrupt or were snapped up by larger housebuilders for their land as the housing market stalled. A mass exodus of construction workers from the industry occurred as construction activity also dried up. As demand for housing has begun picking up again, the capacity of housebuilders to meet this increased demand has been severely restricted.
It is still restricted today.
The shortage of skilled labour in the industry, such as bricklayers, carpenters and plumbers, is a serious problem.
The Financial Times reported that smaller housebuilders building fewer than 100 homes per year completed just 20,000 homes in 2013, as opposed to 50,000 homes per year prior to 2008.
6. Increased buy-to-let investors. As more investors jump on the buy-to-let bandwagon, a larger proportion of housing stock is removed from the open market to be owned by investors for long-term rental. This decreases the available pool of housing stock to individuals purchasing property for owner occupation.