How reduced immigration could affect the economy
Find out some potential effects of reduced immigration numbers.
11:03 26 May 2013
Fewer people means less money being put into the economy in the form of mortgage loans, small businesses, and credit cards just to name a few. How could this potentially affect mortgage loans and the economy in the UK?
- Less demand—fewer people means there is less demand for housing in general, which also includes demand for homes and other types of property that might be passed down to descendants
- Plenty of housing—it will be easier to find housing for existing UK families and individuals, and hopefully less competition as well.
- Incentives—due to the lowered demand for certain products such as mortgage loans, credit cards, and housing you may be able to find incentives that will help stimulate activity for a healthier economy.
- Less diversity—though it might be nice to have better deals on products like mortgage loans, fewer immigrants also means less diversity. The economy can typically benefit from the different types of skills and experiences offered by people from different areas.
- Reduced spending—spending helps an economy stay healthy as well as helping it to recover from any slow activity, so a reduction in the number of immigrants coming to the UK means the amount of spending will also be reduced.
- Interest rates—mortgage interest rates might be better due to the decreased demand for the loans.
- Public funds—the estimates of the available funds for public spending might look a little better if there are not as many citizens in need of the financial assistance and specialty programs.
There are other things which might also be affected by the reduction of immigrants into the UK instead of just the mortgage loans, but there are a variety of factors that can influence the actual effects this might have.