International Migration, Housing Demand and Access to Homeownership in the UK

Abstract

Since the mid 1980s, the UK has experienced a prolonged period of net international migration with debate as to its impact on economic benefits and costs. A third of projected new households in the next 15–20 years are expected to come from net migration. This article examines international migration and housing demand in light of the conventional understanding of British housing markets and the extent to which there are differences in demand and access to homeownership across international migrant groups. Demographic and socioeconomic factors as well as length of residence are found to be significant determinants of homeownership. However, there are also differences in homeownership attainment that may be related to ethno-cultural differences or unobserved wealth effects and mortgage market institutional factors. The role of socioeconomic factors has implications for skills-based migration to the UK if a policy concern is house price pressure and migration.