Controversial immigration rules are dividing opinion — and families

Thousands of families stand to be torn apart as a power struggle rages on between the UK government and courts.

In the latest conflict between the coalition and the judges, over 15,000 families face being separated by government policy.

The Home Office is appealing this summer’s High Court judgment, which found new immigration rules on partners and children joining their families in the UK breach basic human rights.

Last month (5 July), three families won a judicial review of new immigration rules which required British citizens and refugees to earn at least £18,600 if they want to bring a non-European partner into the UK, rising to £22,400 if a partner and child are coming, plus £2,400 for each additional child.

Justice Blake ruled that the new earnings threshold was not unlawful] in itself, but it was a ‘disproportionate’ interference with the right to a family life at the level it was set, especially as it was combined with other onerous rules. For example, the requirement that applicants must have at least £16,000 in the bank if they want to use savings to supplement an income less than the £18,600 threshold.

Justice Blake suggested a lower threshold of £13,500, which would be less likely to penalise young couples, and he also proposed taking into account the earnings of the incoming partner, who may well be the main breadwinner.

The ruling culminated months of campaigning by separated families, human rights lawyers and MPs and came hot on the tails of a June report by the All-Party Parliamentary Group on Migration, which called for an independent review of the rules in light of “emerging evidence about what must be the unintended consequences” - including, it said, the cost to the public purse.

Yet the government remains adamant that the new rules are fair and economically sound and has launched an appeal against the High Court ruling. Earlier this month, House of Lords whip Lord Taylor of Holbeach sent a letter to peers defending the measures.

Lord Taylor insisted that a Middlesex University study which found that preventing 17,800 partners coming to work in the UK would cost £850million in lost economic activity over 10 years, did not include costs such as welfare, health and education.  Lord Taylor argued that the net benefit of the income threshold barrier to family immigration will be £660m to the taxpayer over the next decade.

“The aims of the income threshold are to ensure that family migrants are supported at a reasonable level so that they do not become a burden on the taxpayer and they can participate sufficiently in everyday life to facilitate their integration in British society,” maintained Lord Taylor. 

What is clear is that thousands of husbands, wives, fathers and mothers will suffer separation from their families under such rules.

The £18,600 figure came from advice by the UK Border Agency’s Migration Advisory Committee. Their November 2011 report suggested that 45 per cent of the 37,600 visas issued to migrants joining their spouse or partner that year would fail to meet an £18,600 income threshold. But the Committee warned that its advice was based on economic considerations alone, with no reference to wider legal, social or moral issues. Furthermore, it noted that its calculations relied on various assumptions and generalisations.

So just how arbitrary is the £18,600 income barrier to bring a loved one who may be earning more than you to the UK? It’s certainly far above the £12,875 minimum wage earnings for a 40 hour week.

But as usual, we have a government that says it is determined not to let the courts dictate public policy — even though the High Court’s judicial review in July was not overturning Home Office rules, just suggesting a few sensible amendments to make these family rules more workable and help comply with human rights.

The government’s intransigence suggests it fears discrimination or human rights claims if it loses the appeal.

Meanwhile the cost of these wranglings add up, as does the human cost of couples divided and children growing up not knowing their fathers.

Once again human rights, in this case the right to a family life, is the battle ground for an ugly squabble between government and the courts.

The Home Office is appealing this summer’s High Court judgment on the new immigration rules. Photo: Getty

Vanessa Ganguin is a partner at Laura Devine Solicitors. She is an immigration specialist and heads the firm’s human rights and appeals team.

Show Hide image

Has Brexit burst the British housing bubble?

The fall in value of the pound is having a negative impact on property prices.

The high cost of housing in the UK has almost nothing to do with supply and demand. What matters is political control. Rents are high because landlords have gained the upper hand politically. The consequences are vividly illustrated in Ken Loach’s new film focusing on inequality in Britain, I’ Daniel Blake.  As a student in the 1980s I paid £9 a week to rent a room in a shared house in Newcastle upon Tyne. Private rent was low because for decades before then rents had been regulated. It was the lifting of that regulation that meant rents could rise so that now students have to borrow vast sums of money just to have a place to live. Today’s students pay many multiples more in rent than I ever did, and millions of families with children are also struggling because they have to rent privately.

Because rents have been allowed to rise as high as landlords can get away with, the landlords have been encouraged to buy up more and more properties that were once social housing or lived in by a family, who had bought the property with a mortgage. The number of people renting privately doubled between the last two censuses of 2001 and 2011. That has never happened before. It was the end result of years of deregulation and the withdrawal of our government from representing our interests in housing. Well-regulated private renting is a benefit, but without rent regulation it becomes a social evil.

Housing prices are not determined by supply and demand because you do not have a choice about needing to be housed. Allow an unregulated market to develop when social housing is also being cut and there is no choice not to buy what is on offer, other than sleeping on the streets. Prices will go sky-high. The purchase prices for mortgage borrowers also rise to astronomical levels as first-time buyers are competing with landlords to buy properties, and so have to be able to secure a mortgage equal to the amount a landlords can wring out of people desperate for a home.

In the first blog in this series on affordable housing published by Taxpayers Against Poverty, Stephen Hill, director of C2O Futureplanners, explained: “There are over one million less affordable homes than there were in 1980. The population has grown by nearly nine million people. Incomes at the median level are flat, and secure employment is increasingly scarce.” He is correct, but the situation is even worse than that — it is not lack of housing that is the problem. Each annual census in the UK records the amount of housing that exists at each point in time. It does this by recording the number of rooms in homes over a certain size. The number of rooms per person has risen at every census since 1981.

The 2011 census was the first to count bedrooms and found that in England and Wales there were 66 million for a population of 55 million (21 million of whom were married or in a civil partnership). So even if we make the ludicrous assumption that only married people share a bed and no children use bunk-beds, there were at least 22 million bedrooms empty on census night 2011. We have not been building a huge number of new houses or flats in recent years, but we have been adding extensions on to our existing homes and so we now have more housing than we have ever had before, per person and per family. We just share it out more unfairly than we have ever done before.

If housing prices were about supply and demand then our surplus of bedrooms would result in falling prices, but this is not a free market. You are not free to buy a flat that has been left empty in London to appreciate in value by its owner. They do not want to sell, or sometimes even rent it out, and you almost certainly would not have the money even if they did.

It is in the housing market that the majority of investments are made in the UK, housing is where most wealth is held. As we become more and more economically unequal it is through housing that we most clearly see that most of us are losers while just a few (who own multiple properties) are winners. Recent UK governments have been allowing wealth and income inequalities to rise and rise.

As Fred Harrison explained in the second blog in this series, government has not only withdrawn from regulating housing rents and profits to avoid this winner-takes-all-economics — it is now even prepared to provide £2bn to buy properties that home builders can’t sell so that they don’t need to lower prices even if landlords and first-time buyers will not buy their properties. The government sees renting-seeking as a social good, and believes that the market in housing should be regulated less and less with each year that passes, other than intervening to keep prices high and rising. Meanwhile, street homelessness rises, evictions rise, the debt of mortgage holders rises, housing prices rise and a small minority of the population become richer. So how will it end?

You might have thought that prices would stop rising when landlords stopped buying properties because the return on their investments in terms of rent would not making it worth their while paying, say, one million pounds for a three-bed house in a part of London near a tube station. Suppose that the most a family could pay was £20,000 a year in rent. The landlord’s “return” on their investment would only be two per cent a year, ignoring wear-and tear and anything else that they might be able to off-set against paying tax. If the forces that were actually at play were “supply and demand” then surely prices have to stop rising when people can no longer afford the rents?

However, landlords have another return: the escalating value of the property itself. If the property is rising by five per cent a year in value then they are making a seven per cent return when they rent it out, even if annual rents are just two per cent of its value. The rise of five per cent a year is due to speculation which is itself partly fed by a belief that the government of the day will do all it can to protect their investments, but it will only do that up to a certain point.

Because it needs to raise taxes a little given the state of the national finances, the UK government is now withdrawing its support of reckless profit taking by smaller landlords. In October 2016 a group of buy-to-let landlords lost their appeal in the courts to try to continue to be able to claim their mortgage interest payments as a business expense. From 2017 only the largest of landlords who set up companies to rent out their properties will be able to continue to do that.

The government knows that the housing market is in trouble. That is why Philip Hammond, the current Chancellor, announced that their “Help to Buy” scheme (which was aimed at the very best-off of potential first time buyers) will end in December 2016. The government knows that with the risk of falling house prices in future it cannot afford the guarantees that “Help to Buy” created. “Help to Buy” schemes were the previous Chancellor, George Osborne’s biggest spending commitment. They were designed to help inflate the housing market and keep prices rising, but eventually every speculative bubble has to burst.

On 21 September the first reports of a stalling market were released under headlines that included: “Q2 UK house sales at an all-time quarterly low says Land Registry”. UK Land Registry figures now show housing prices to have fallen in London by 7% so far in 2016, with the number of sales roughly halving. Investors have stopped buying; if a recent investor wants to sell they have to do so at a loss. Nationally prices fell by 4.5%.

So what happened to the magic-money-tree? In short the pound fell in value and it has been continuing to fall ever since the UK voted to leave the EU. There was always going to be “the event” that triggered the end of speculation and it is looking more and more likely as if Brexit was that event. Once the pound begins to fall in value then any overseas investor knows that if they buy property in the UK, even if its value in pounds does not fall, it will be worth less to them in future.

Suddenly UK housing is not a safe asset. Suddenly prospective landlords actually have to try to rely on their tenants’ rent to pay back their borrowings. Suddenly housing prices change despite no great alteration in supply or demand. Suddenly the whole edifice looks unsafe, not just for the majority of young and almost all poor people in Britain, but for the large majority of the population.

It was never “supply and demand” that determined our housing costs and profits. Relying on that belief did not result in greatly improved cheaper housing for most people, but it was easy to claim that somehow tomorrow would be better if we just left it to the market — until we left it to the ever more unregulated market for too long. Housing costs, prices and supply are determined by governments, including those that shirk their responsibilities and have too much concern for the economic fortunes of the affluent few.


This is part of a series of blogs on affordable housing published by Taxpayers Against Poverty. You can read others in the series on their website or sign up to attend their seminar in Parliament on the 16th November here: