Moving from Portugal to Angola

The recession in Portugal is pushing people to migrate to the nation's old colonial holdings

Weird effects of a first-world depression: Portugese are moving in ever-greater numbers to the country's former colonies, Angola and Mozambique, and sending increasing amounts of money back home in the form of remittances.

Tanja Goodwin of the NYU development research institute writes:

Angola has again become Portugal’s El Dorado as unprecedented numbers of Portuguese workers have flocked to the former colony: from 2006 to 2009 alone the number of visas issued for Portuguese increased from 156 to 23,000. Some already complain about difficulties in obtaining legal permissions to stay in Angola. The number of Portuguese workers settling in Mozambique has increased by more than 30 percent over the past two years. . .

At least African countries don’t have to fear that Portuguese will be living off their welfare programs. Portuguese seem to find well-paying jobs: Remittances sent from Angola to Portugal have increased more than seven-fold. In 2009, they even surpassed remittances sent from the UK.

In 2011, Portugese people in the UK sent €105m back home, while €147m was sent from Angola. Whether or not the southern African nations start to think of the migration as a problem, as Goodwin suggests, will be interesting to watch – especially given how loosely immigration rhetoric hews to the facts in the UK.

Wouldn't you want to move there? A boy dives into a waterfall on the outskirt of Lubango, Angola. Photograph: Getty Images

Alex Hern is a technology reporter for the Guardian. He was formerly staff writer at the New Statesman. You should follow Alex on Twitter.

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I was wrong about Help to Buy - but I'm still glad it's gone

As a mortgage journalist in 2013, I was deeply sceptical of the guarantee scheme. 

If you just read the headlines about Help to Buy, you could be under the impression that Theresa May has just axed an important scheme for first-time buyers. If you're on the left, you might conclude that she is on a mission to make life worse for ordinary working people. If you just enjoy blue-on-blue action, it's a swipe at the Chancellor she sacked, George Osborne.

Except it's none of those things. Help to Buy mortgage guarantee scheme is a policy that actually worked pretty well - despite the concerns of financial journalists including me - and has served its purpose.

When Osborne first announced Help to Buy in 2013, it was controversial. Mortgage journalists, such as I was at the time, were still mopping up news from the financial crisis. We were still writing up reports about the toxic loan books that had brought the banks crashing down. The idea of the Government promising to bail out mortgage borrowers seemed the height of recklessness.

But the Government always intended Help to Buy mortgage guarantee to act as a stimulus, not a long-term solution. From the beginning, it had an end date - 31 December 2016. The idea was to encourage big banks to start lending again.

So far, the record of Help to Buy has been pretty good. A first-time buyer in 2013 with a 5 per cent deposit had 56 mortgage products to choose from - not much when you consider some of those products would have been ridiculously expensive or would come with many strings attached. By 2016, according to Moneyfacts, first-time buyers had 271 products to choose from, nearly a five-fold increase

Over the same period, financial regulators have introduced much tougher mortgage affordability rules. First-time buyers can be expected to be interrogated about their income, their little luxuries and how they would cope if interest rates rose (contrary to our expectations in 2013, the Bank of England base rate has actually fallen). 

A criticism that still rings true, however, is that the mortgage guarantee scheme only helps boost demand for properties, while doing nothing about the lack of housing supply. Unlike its sister scheme, the Help to Buy equity loan scheme, there is no incentive for property companies to build more homes. According to FullFact, there were just 112,000 homes being built in England and Wales in 2010. By 2015, that had increased, but only to a mere 149,000.

This lack of supply helps to prop up house prices - one of the factors making it so difficult to get on the housing ladder in the first place. In July, the average house price in England was £233,000. This means a first-time buyer with a 5 per cent deposit of £11,650 would still need to be earning nearly £50,000 to meet most mortgage affordability criteria. In other words, the Help to Buy mortgage guarantee is targeted squarely at the middle class.

The Government plans to maintain the Help to Buy equity loan scheme, which is restricted to new builds, and the Help to Buy ISA, which rewards savers at a time of low interest rates. As for Help to Buy mortgage guarantee, the scheme may be dead, but so long as high street banks are offering 95 per cent mortgages, its effects are still with us.