Immigration and House Prices in the UK

30 Pages Posted: 8 Aug 2011

See all articles by Filipa Sa

Filipa Sa

King's College London; IZA Institute of Labor Economics

Multiple version iconThere are 2 versions of this paper

Abstract

This article studies the effect of immigration on house prices in the UK. It finds that immigration has a negative effect on house prices and presents evidence that this negative effect is due to the mobility response of the native population. Natives respond to immigration by moving to different areas and those who leave are at the top of the wage distribution. This generates a negative income effect on housing demand and pushes down house prices. The negative effect of immigration on house prices is driven by local areas where immigrants have lower education.

Keywords: immigration, house prices

JEL Classification: J61, R21

Suggested Citation

Sa, Filipa G., Immigration and House Prices in the UK. IZA Discussion Paper No. 5893. Available at SSRN: https://ssrn.com/abstract=1906196

Filipa G. Sa (Contact Author)

King's College London ( email )

150 Stamford Street
London, SE1 9NN
United Kingdom

IZA Institute of Labor Economics

Schaumburg-Lippe-Str. 7 / 9
Bonn, D-53072
Germany

Register to save articles to
your library

Register

Paper statistics

Downloads
141
Abstract Views
765
rank
209,193
PlumX Metrics