With the Referendum on EU membership out of the way, our households can concentrate on something European that doesn’t involve party political broadcasts or politician’s treating us all like children – the Euro 2016 Football Tournament. Chelmsford is home to all different backgrounds and nationalities so if you’re not lucky enough to be jetting off to France for the UEFA Euro 2016 football tournament, have no fear! For a bit of fun (although there is a serious side to this – you know there would be with me!) I have taken a look at which European people live in Chelmsford so I know who to soak up the best atmosphere with!
But what does this have to do with the Chelmsford property market? Quite a lot in fact. Many of these European people were economic migrants, especially those from Eastern Europe. A lot of people’s concerns over migration are exaggerated as this EU migration has acted to fill gaps in skills and labour supply during growth periods of the mid 2000’s and subsequently over the last five years in Chelmsford, EU migrants have done little to displace native workers but do the jobs us Brits don’t often want to do. There is no preferential treatment for council housing in Chelmsford, so EU migrants have in fact increased demand for privately rented accommodation in Chelmsford.
This has meant, as demand for housing in Chelmsford has remained strong, Chelmsford landlords have continued to buy properties to rent out to keep up with this demand. Therefore, the value of every homeowner’s property in Chelmsford has been kept high because of the demand from these Chelmsford landlords buying starter homes to rent out, releasing existing homeowners to go up the property ladder – benefiting everyone in the chain.
However, rents have remained relatively subdued, in Chelmsford rents are only 18.3% higher than they were in 2005, not bad when you consider we have had 38.52% inflation in the UK economy as a whole over the same 11 years.
EU migration has meant existing homeowners, landlords and the economy as a whole in Chelmsford (and the UK) have benefitted from better economic conditions, property prices not slumping whilst rents have been kept in check by wage inflation. Now I wonder who will win the footy? Back to the TV!