TL;DR: A University of Greenwich report commissioned by the Home Office, published on 19 June 2026, reviews international evidence on how migration affects housing costs. The research finds that while immigration can increase demand for housing and push up rents and prices, the scale of the effect depends heavily on local housing supply conditions and policy responses.
Introduction: Why the Link Between Migration and Housing Costs Matters
The relationship between migration and housing costs has become one of the most examined questions in UK immigration policy. As policymakers, local authorities, and housing analysts attempt to understand the drivers of persistently high rents and property prices, understanding how migration and housing costs interact has taken on renewed urgency.
On 19 June 2026, the Home Office published research conducted by the University of Greenwich that systematically reviews international evidence on the effects of immigration on housing markets. The report assesses what causes these effects, how large they are in practice, and what the findings imply specifically for the United Kingdom.
This research arrives against a backdrop of significant public debate about housing affordability, with the UK facing a well-documented shortage of homes relative to demand. For policymakers, employers, sponsors of overseas workers, and those navigating the UK’s immigration system — including individuals subject to UK visa fees and the Immigration Health Surcharge — understanding this evidence base is increasingly important context for any discussion of immigration’s broader economic footprint.
What Is the Research on Migration and Housing Costs?
The University of Greenwich report on migration and housing costs is an evidence review commissioned by the Home Office to assess the academic and empirical literature on how immigration affects housing markets internationally. It examines the mechanisms through which migration influences rents and property prices, the conditions under which these effects are largest or smallest, and what lessons comparable countries’ experiences hold for UK housing and immigration policy.
Key Findings: What Does International Evidence Show?
Immigration Increases Demand — But Effects Vary Widely
The report’s central finding is that immigration does, on balance, increase demand for housing, which in turn exerts upward pressure on rents and, to a lesser extent, on property purchase prices. This is consistent with the basic economic principle that an increase in the number of households seeking accommodation — regardless of origin — increases competition for a fixed or slowly expanding housing stock.
However, the research emphasises that the size of this effect is not uniform. International evidence drawn from studies across Europe, North America, and Australia shows that the magnitude of the impact on migration and housing costs depends on several interacting factors:
- The elasticity of local housing supply: In areas where planning systems and land availability allow new homes to be built relatively quickly in response to demand, price pressures are substantially lower.
- The geographic concentration of migrants: Because immigration tends to be concentrated in major urban centres — particularly gateway cities such as London — the localised pressure on housing markets can be considerably greater than national averages suggest.
- The income profile of migrants: Higher-earning migrants tend to have stronger effects on property purchase prices; lower-income migrants have a proportionally greater effect on private rented sector rents.
- The speed of arrival: Rapid increases in migrant populations over short periods create sharper demand shocks than gradual, sustained inflows.
According to the report, studies from comparable high-income countries consistently find that a one percentage point increase in the migrant share of the local population is associated with rent increases of between 0.5% and 2%, depending on local supply conditions.
The Mechanisms Behind the Effects
The research identifies several distinct mechanisms through which immigration shapes housing markets:
Demand-side effects are the most direct. Migrants require accommodation upon arrival and therefore add to the pool of households competing for available homes. In tight urban rental markets, this is reflected quickly in rents.
Displacement effects are more complex. Some international studies find that as migrants enter lower-cost segments of the housing market, existing low-income residents may be pushed towards less affordable or less accessible alternatives — a phenomenon sometimes described as ‘filtering up’ through the market.
Supply-side effects are less frequently considered but are highlighted in the report as significant. Immigration also increases the supply of construction workers, which can accelerate housebuilding and partially counteract demand-side pressures. This feedback loop is under-studied but represents an important nuance in the overall picture.
Fiscal and public spending effects are indirectly relevant: revenue generated through mechanisms such as UK visa fees and the Immigration Health Surcharge contributes to public finances, though the report does not directly attribute housing investment to these income streams.
What Makes the UK Different?
The report devotes specific attention to the structural features of the UK housing market that shape how international findings translate to a domestic context.
The UK — and England in particular — has one of the most restrictive planning systems among comparable economies. This low housing supply elasticity means that demand shocks, including those generated by migration, feed more directly into price increases rather than triggering compensating new construction. The research notes that this structural constraint is arguably the primary reason housing cost pressures in the UK are acute by international standards.
London’s role as a principal destination for international migrants amplifies localised effects. The capital accounts for a disproportionate share of the UK’s migrant population, and its housing market is among the least affordable in the world. The report suggests that national-level analysis of migration and housing costs risks masking the concentrated pressures experienced in specific local authority areas.
The report concludes that ‘the effect of immigration on UK housing costs is likely to be positive — meaning upward — but that the primary policy lever for moderating this effect lies in housing supply reform rather than in migration management alone.‘
Implications for UK Immigration Policy
The research frames its implications carefully, noting that migration policy and housing policy are distinct but interrelated levers. Neither can be assessed in isolation.
The report acknowledges that reducing net migration would, other things being equal, reduce demand-side pressure on housing. However, it also highlights that the economic contributions of migrants — including those subject to UK visa fees, the Immigration Health Surcharge, and employer sponsorship costs — must be weighed alongside housing market effects in any comprehensive policy assessment.
For sectors that rely heavily on sponsored overseas workers, such as health, social care, construction, and hospitality, the research underscores the importance of aligned housing provision strategies when workforce expansion through international recruitment is planned.
Implications for Sponsors and Employers
For UK employers who sponsor overseas workers, the report’s findings carry indirect but meaningful relevance. Organisations recruiting internationally are effectively contributing to local housing demand in the areas where their sponsored workers settle. Responsible workforce planning — particularly for large-scale recruitment programmes — increasingly involves consideration of local housing availability alongside visa compliance obligations.
Employers operating in areas of acute housing pressure may find that recruitment and retention of overseas talent is complicated by housing affordability, regardless of salary levels or visa category. The costs associated with the immigration process — including UK visa fees and the Immigration Health Surcharge payable by sponsored workers — already represent significant outgoings; housing market conditions add a further practical dimension to workforce planning.
Sponsors in the construction sector occupy a particularly notable position: the research identifies construction workers as a group whose presence can partially offset housing demand pressures by expanding supply capacity.
Frequently Asked Questions
Q: Does immigration cause UK house prices to rise? A: According to the University of Greenwich report, international evidence consistently finds that immigration exerts upward pressure on rents and, to a lesser degree, on property prices. However, the size of this effect depends strongly on local housing supply conditions. In areas where new homes can be built quickly, the price effect is substantially lower.
Q: Which parts of the UK are most affected by migration-related housing cost pressures? A: The report highlights that immigration is geographically concentrated, with London and other major urban centres absorbing the largest migrant populations. Localised housing cost pressures in these areas are therefore considerably more pronounced than national averages indicate.
Q: Does immigration also increase housing supply? A: Yes, the research identifies a supply-side mechanism: migrants working in construction contribute to housebuilding capacity. This effect partially offsets the demand-side pressure, though the report notes it is under-studied in existing literature.
Q: What does the report recommend for UK policy? A: The report concludes that housing supply reform — specifically, increasing the elasticity of the planning system to allow faster construction — is the primary tool for moderating housing cost pressures, including those associated with migration. Migration management is presented as one of several interacting policy levers rather than a standalone solution.
Q: Are UK visa fees or the Immigration Health Surcharge relevant to this research? A: The report does not directly analyse UK visa fees or the Immigration Health Surcharge as housing policy instruments. However, these costs form part of the broader fiscal context of immigration, and the revenue they generate contributes to public finances that fund housing-related expenditure.
Key Takeaways
- The University of Greenwich report, published 19 June 2026, finds that immigration increases housing demand and exerts upward pressure on rents and prices in the UK and internationally.
- The size of the effect on migration and housing costs depends heavily on local housing supply elasticity — restrictive planning systems amplify price pressures.
- London and major urban centres experience more concentrated effects than national averages suggest, due to the geographic clustering of migrant populations.
- Immigration also contributes to housing supply through the construction workforce, partially counteracting demand-side effects.
- The report identifies housing supply reform as the principal policy lever for addressing affordability, with migration policy viewed as one complementary factor among several.
Conclusion
The Home Office-commissioned research on migration and housing costs provides a rigorous, evidence-based foundation for one of the UK’s most contested policy debates. By drawing on international comparisons, the University of Greenwich report clarifies both the reality of immigration’s upward pressure on housing markets and the critical role of housing supply policy in determining how large that pressure becomes. For policymakers, local authorities, employers, and those engaged with the UK immigration system, this research offers important context — underscoring that sustainable solutions to housing affordability require action on both the supply and demand sides of the equation.