The Bank of England has acknowledged that mass migration is a significant factor in the rising cost of rent in the country, contradicting claims from advocates of unrestricted migration who argue it leads to economic prosperity. The central bank’s chief economist, Huw Pill, pointed out that the increase in rent prices in England is not solely due to monetary policy but is also influenced by supply and demand dynamics, exacerbated by insufficient housing construction to accommodate the high levels of migration permitted under the Conservative government.
Pill emphasized that population growth, fueled by substantial immigration, is driving demand and putting pressure on the housing market, with net migration reaching a record 745,000 in 2022. He highlighted challenges in housing construction due to planning issues and other policy choices, leading to a supply constraint that is not driven by monetary policy but by other factors.
Meanwhile, despite the government’s celebration of economic growth following a period of recession, a closer look at GDP per capita reveals a different story. The UK’s GDP per capita has declined by 0.7% when adjusting for inflation and population growth, largely driven by mass migration. Reports indicate that migration accounts for a significant portion of England’s growing housing deficit, with projections suggesting a further 10% increase in the UK’s population by 2036, mostly attributed to migration.
As the issue of mass migration continues to impact economic indicators and housing markets, there is a reluctance from major political parties to address the trend. The consequences of unchecked migration are likely to worsen in the coming years, posing challenges for housing supply and population growth.
