Monday, June 23, 2008

Eastern European workers leave Britain, no effect on rental demand?

In parts of Europe, migrant workers head home

British government data show that work applications from the eight east European countries that joined the EU in 2004 were down 13% in the January to March period from last year. "The Polish zloty has appreciated by about 40% against the British pound since 2004. Given the cost-of-living differential between the two countries it makes little sense to be an economic migrant now in the UK," said Michael Dembinski of the British-Polish Chamber of Commerce. Poland's economy grew by 6.1% in the first quarter of 2008, Slovakia's by 8.7% and the Czech Republic's by 5.4%. Britain, battered by a global credit crunch and tumbling house prices, is expected to grow by just 1.8% in 2008. Polish corporate sector wages were up 12.6% in April from a year before.

Posted by drewster @ 05:11 PM (696 views)
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3 thoughts on “Eastern European workers leave Britain, no effect on rental demand?

  • C'mon Correction says:

    Just another factor that is beginning to feed into the secondary wave of the downward spiral. This will ensure house prices continue to drop for some years to come. I’m thinking I’m going to rent for at least another 3 years, before buying at a realistic price (some people would call it a bargain price). For all the people who have bought at any cost in the last 5 years who will get struck hard financially, there is others who will be able to buy a nice home and raise a family at the right price.

    Patience is a virtue.

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  • Undoubtedly ther will be some reduction in rental demand if migrant workers leave but I was always a bit suspicious of VIs claiming that rental demand was substantially raised by East European incomers. For the same reason, I don’t expect big drops in demand as they leave either.

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  • dohousescrashinthewoods says:

    Quite, I don’t see much change in rental demand as many shared in the cheapest possible accommodation.
    Certainly not likely to affect the market for shiny I-wish-it-were-1200-a-month armchair-BTL hutches.

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