Migrants and Housing in the UK

This briefing provides statistics on migration and housing in the UK.

Migrants have lower homeownership rates than the UK-born, but the exact figures depend on the definition of a migrant

People born overseas are far more likely to be in private rented accommodation than UK-born people. In 2021, 43% of non-UK-born people living in England and Wales owned their home, compared to 67% of the UK-born (Figure 1). Residents born in EU countries had lower homeownership rates than their non-EU counterparts, with over half living in privately rented accommodation.

The foreign-born were marginally less likely to live in social housing, which includes social rented housing (typically at 50% of market price), affordable rented housing (at around 80% of market price), and rent-to-buy/own housing schemes (which allows people to rent a home at a reduced price while saving for a deposit to buy it).

The picture is similar in Northern Ireland, while homeownership rates are lower in London for all country of birth groups.

Figure 1

A different pattern emerges when housing tenure is viewed by nationality. In 2021, people living in England and Wales with a non-UK passport were considerably less likely to own their own home compared to foreign-born people with UK citizenship (30% and 61% respectively). This is largely explained by the fact that naturalised UK citizens have lived in the UK for longer than non-citizens (see the next section).

Around a third of people living in privately rented households in England and Wales were non-UK born, compared to around 10% of people living in owner-occupier housing and 15% living in social housing (Figure 2).

Figure 2

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Homeownership rates were higher among migrants who had lived in the UK for longer

In 2021, only 17% of foreign-born people who had moved to England or Wales in the previous five years owned their own home. Those who had moved over 20 years earlier, by contrast, had a homeownership rate of 68%, marginally higher than the UK-born (67%) (Figure 3). For each period of residence, homeownership rates were slightly lower among people with non-UK nationality.

Most migrants move into temporary accommodation upon arrival, but research indicates that their housing preferences converge with those of UK-born migrants over time. Migrants who are only staying in the UK for a short period may tolerate living in overcrowded conditions or poor-quality housing. However, people who settle permanently look for better housing choices, including particular neighbourhoods and avoid sharing accommodation with other families.

Migrants who had lived in the UK for shorter periods were also less likely to live in social housing. This trend reflects the fact that people with most types of temporary immigration status are ineligible for social housing. See the Understanding the Policy section above and the Housing Rights Information website for details about the different housing rights of migrants.

Figure 3

Income is another factor that affects housing tenure because people with higher earnings have greater financial capacity to afford homeownership. While the 2021 Censuses do not contain earnings information, they provide details about the jobs people do, a useful proxy. Indeed, migrants who were working in high-skill jobs in 2021 had higher homeownership rates.

Figure 3 also shows that people in households comprised of multiple adults but no dependent children were more likely to own their own home. Comparing the housing tenure of migrants from different regions, residents born in post-2004 EU accession countries had the highest percentage of private rental accommodation (61%), and Sub-Saharan Africans had the highest share in social housing (29%).

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In 2021, 7% of people living in social housing in England and Wales had a non-UK passport

The share of new social housing lettings in England to lead tenants with a non-UK nationality increased from 6% to 10% between the 2007/08 and 2022/23 financial years, most likely due to the rising share of non-UK citizens in the population (Figure 3). Over this time, the share of social housing in England and Wales occupied by non-UK nationals has risen—according to Census data, 7% of people living in social housing in 2021 had a non-UK passport, compared to 5% of people in 2011.

In general, migrants living in the UK with temporary immigration statuses – such as a work, study or family visa – are not eligible for social housing. This is because they are subject to the “No Recourse to Public Funds” (NRPF) condition, which prevents access to state-funded welfare. However, these restrictions may not apply in cases where a migrant with NRPF is living with somebody who is not covered by these rules. For more information about NRPF, see the Migration Observatory briefing, Deprivation and the no recourse to public funds (NRPF) condition.

Figure 4

Among people eligible for social housing in England, local authorities do not prioritise assistance according to applicants’ nationality or immigration status—instead, priority is determined according to need. The exact criteria vary across local authorities, but, in general, people are considered to have a higher priority if they are at risk of homelessness or need to move for welfare reasons. While some migrant groups may be more likely to have the characteristics required to gain priority for social housing, on average, migrants were slightly underrepresented among social renters at the time of the 2021 Census of England and Wales. At that point, 7% of people living in social housing had a non-UK passport, compared to 10% of non-UK passport holders in the population of England and Wales (excluding people living in communal establishments, such as care homes). See the final section for more information about homelessness support for non-UK citizens.

Limited available evidence does suggest, however, that migration affects the availability of social housing. Looking at the period 1992 to 2013, Manning et al. (2014) found that migration could explain part of the fall in the likelihood that a UK citizen was living in social housing, although they found that reductions in the overall social housing stock – from 5.8 million in 1992 to 4.9 million in 2012 – played a larger role.

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There is some evidence that migration has increased house prices

Migration contributes to the demand for housing through its contribution to population growth. Given that the supply of housing in the UK has increased more slowly than demand, migration may be expected to increase housing costs. The determinants of housing costs are complex, however. Costs of housing take different forms – notably house prices, the private rental market and (low-cost) social housing – affecting different groups in different ways, depending on the type of housing they are most likely to occupy. In addition to demographic factors affecting the number of households (such as population growth and average family size), demand also depends on factors such as income growth and the availability of mortgage credit.

The impact of migration on housing costs is difficult to estimate, but there is some evidence that migration is likely to have increased house prices in the UK. For example, the Migration Advisory Committee found in 2018 that a one percentage point increase in the UK’s population due to migration increased house prices by 1%, but cautioned that the results depend substantially on the statistical approach taken. Their finding was broadly consistent with other modelling by the UK government and the Office for Budget Responsibility. The Migration Advisory Committee study found that the impact of migration on house prices was larger in local authorities with more restrictive planning practices, i.e. those with higher refusal rates for major developments.

Migration may affect housing costs differently at the national versus local level. One study using data on immigration and house prices for 170 local authorities in England and Wales between 2003 and 2010 found that an increase in the migrant population equal to 1% of the local population reduced house prices by 1.7%. Another study, which looked at the link between house prices and inflows of asylum seekers in England and Wales, produced similar results. In both cases, the authors argue that house prices fell because high-income locals left areas where the migrant population increased. In other countries, such as the United States, Canada and Spain, there is evidence that migration has increased house prices.

Note, however, that recent migrants are particularly likely to be in private rented housing (see Figure 2). As a result, migration may have a larger impact on prices in the private rental market since this is where demand will be affected most. In practice, the research to date provides limited insight into the magnitude of any effect, in part because of data limitations.

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Both migrants and the UK born spend a higher share of their net incomes on rent if they live in London

A key indicator of housing affordability is the rent-to-income ratio, the share of the household’s net (or post-tax) income spent on rent. Net income includes the housing benefit that some renters receive.

In 2021 and 2022, the median rent-to-income ratio in the UK was 21% for households living in social housing and 28% for those who rented privately, according to UKHLS survey data (Figure 5). In general, the shares of net income that the foreign- and UK-born were spending on rent were not dramatically different, although households that included both UK- and foreign-born adults had lower rent-to-income ratios. In most cases, the proportion of income spent on rent was higher in London than in the rest of the UK.

Figure 5

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Migrants are more likely to live in overcrowded housing, especially in London

Households where at least one of the adult members was foreign-born were more likely to be in overcrowded conditions, according to 2021-2022 data from the UKHLS (Figure 5). During this period, 10% of households with non-EU-born adults and 7% of households with EU-born adults were considered overcrowded.

Among households with at least one foreign-born adult, the overcrowding rate was higher in London (14%) than in the rest of the UK (7%). It was also more prevalent in social housing (16%) and privately rented accommodation (18%), compared to owner-occupied housing (5%).

Figure 6

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In the year to March 2023, around a fifth of people eligible for homelessness support in England were non-UK citizens

According to statistics from the Ministry for Housing, Communities, and Local Government for the 2023/24 financial year, 324,990 households in England – defined as one or more people who share living arrangements – had been assessed by local authorities as being either homeless or at risk of homelessness. Of these, 22% (or 72,850) had a non-UK citizen as the head of the household. Note that these figures do not include all migrants—people with temporary immigration statuses subject to NRPF (see Understanding the Policy above) are not eligible for homelessness support, although they may receive other types of housing assistance if they are destitute and would otherwise be homeless. Looking in more detail, EEA citizens were the head of 7% of households, while people granted refugee status accounted for 5%.

The number of people receiving homelessness support after leaving Home Office asylum accommodation began rising sharply in the second half of 2023, following an increase in grants of refugee status. Since 2002, people who receive refugee status after claiming asylum are given 28 days’ notice to move from government-funded accommodation into new accommodation. Some become homeless in the meantime, although they may subsequently receive local authority support.

In December 2024, the Home Office extended the notice period to 56 days under a six-month pilot, running until June 2025.

Figure 7

Some people who arrived in England after Russia’s invasion of Ukraine in 2022 are also in receipt of homelessness support—in the financial year 2023/24, 1,760 Ukrainian households had been assessed by local authorities as being either homeless or at risk of homelessness. This was the case for a similar number of Afghan nationals (1,830). 

Evidence gaps and limitations

Given the lack of information on the prices of houses that are currently out of the market, there remains great uncertainty about the impact of immigration on house prices. In addition, while immigration may affect the price of housing in a certain area, it is likely that the price of housing itself affects immigration decisions. For example, migrants may move to areas where housing is less expensive. Therefore, it is challenging to establish a causal relationship between the price of housing and the level of immigration.

Finally, while wealthy foreign citizens own a considerable share of London’s high-end property market, there is not much information about the impact of immigration at the top end of the housing market.

Acknowledgements

Thanks to Sue Lukes, Professor Steven Nickell, John Perry and Matthew Pollard for helpful comments on an earlier version of this briefing. This briefing was originally part of the Migration Observatory’s project on migrant integration, funded by the Paul Hamlyn Foundation.

Note

• University of Essex, Institute for Social and Economic Research. (2023). Understanding Society: Waves 1-13, 2009-2022 and Harmonised BHPS: Waves 1-18, 1991-2009. [data collection]. 18th Edition. UK Data Service. SN: 6614, http://doi.org/10.5255/UKDA-SN-6614-19.