Do Your Properties Play Host To Migrant Workers?

UK Migrant Workers-courtesy of BBC News

I was reading some news stories today on the BBC news channel and came across some interesting statistics regarding migrant workers.

Of course the stats were worldwide, but what interested me most was the European ones.

Some of the stats show there is a huge drop off of Romanians and Bulgarians moving to Spain. Their numbers have fallen by 60%.

The UK has seen a similar drop in the number of applications to the Worker Registration Scheme from Eastern European workers, as their home economies have strengthened. Data shows migrants from countries such as Poland tend to be temporary and circular -sometimes on a seasonal basis.

Migrant workers are more at risk of losing their jobs than native workers as they often work in industries especially exposed to the recession – notably construction and hospitality.Hence, for the most part, they are also sending less cash home to support their families.

Many migrants to the UK and Ireland from Central and Eastern Europe have returned home, where economic conditions have not deteriorated as much.

Lots has been said in the press and by many others about the migration of peoples from other European countries since the borders were opened up more. And, as nationals of European Union countries, they can legally go back to their host country later, should they wish. A recession often pushes international migration up the political agenda, and governments frequently take action intended to protect employment opportunities for their own nationals.

Several countries have cut the numbers of work permits for foreigners, including Malaysia, Australia and Russia.

Some, including Spain and Japan, are even offering incentives for migrants to return including one-way tickets and lump-sum payments. Migrant workers have been especially vulnerable to the global economic storms that were created by the financial crisis.They are more likely to lose their jobs, and their families at home have paid the price in the shape of less financial support.

What has all this go to do with property investment?

Its interesting to see how this relates to us in the UK-and how this will impact both our economy and our property market.Many investors have come to rely upon foreign workers in their rental properties, particularly from Eastern Europe. Is your investment area like this? If so, you may need to change your current strategy before the other investors in your area catch on and beat you to what’s left of the market share.

If your properties are in an area that relies on the influx of foreign nationals then you could spend some time re-evaluating your area. Check out your local government stats for ethnic split and research how many foreign nationals live in your area. How are the unemployment stats in your area? Are they static or rising? What job losses are happening-and in what trades? Due diligence is key here, understand your market at all times so you can prepare for any new groundswell of change and look in other directions for replacement tenants- should you need to.

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