The number of people simultaneously leaving and entering the UK is in a constant state of flux. As much as tabloid newspapers like to run stories of illegal migrants, the reality is that more people enter the country legally through one of the many visa routes. Home Office data shows that 3.3 million visas were granted for the year ending September 2023. Over 50% of those were temporary visitor visas, but a significant portion were given to people coming to work in the UK.
Visa Changes Help the Cost of Living in the UK
As per the latest report [1], 585,774 worker visas (including those for dependents) were granted in the year ending September 2023. That’s a 54% increase on the previous reporting period and a reflection of the government’s drive to bring more workers to the UK. An example of this desire to encourage more migration is changes to the Skilled Worker visa. The Skilled Worker visa allows suitably qualified people to work in the UK for an employer that holds a sponsor licence.
It replaced the Tier 2 visa in 2020, and, as of 2024, new salary requirements will come into effect. Home Secretary James Cleverly announced in 2023 that the minimum wage for Skilled Worker visas would increase from £26,200 to £38,700. There are exceptions to the rule. For example, if the job offered is in an official “shortage occupation”, the candidate is under 26, studying, a recent graduate, or in professional training, the salary can be lower.
However, for the majority of successful Skilled Worker visa applicants, the guaranteed minimum salary will be £38,700 from April 4, 2024. What’s more, Cleverly has stated that the exemptions will be gradually removed, making the £38,700 minimum limit standard across all occupations. That’s a positive for foreign workers eyeing the UK as a potential place to work. Perhaps more importantly, the salary bump for skilled workers can help them navigate the UK’s often treacherous rental sector.
Rental Market Changes Shouldn’t Hurt Skilled Workers
We know there is a desire among some Scottish politicians to remove certain conditions within the Cost of Living (Tenant Protection) Bill [2]. This could remove the rental cap and cause prices across the country to increase dramatically. Someone considering a move to the UK could see this as a reason not to come. However, the salary bump should mitigate some of the concerns foreign workers might have when they’re sizing up places to live. We’re not saying a minimum salary of £38,700 will allow foreign workers to live wherever they want.
Citylets data states that the average rental price in Scotland in Q4 2023 was £1,097 [3]. This takes into account all property sizes (one to four bedrooms) and areas. However, as anyone familiar with rental properties will know, context matters. A two-bedroom apartment in Edinburgh’s city centre will cost more than an equivalent in Aberdeen. Therefore, a foreign worker sizing up the UK’s rental market needs to consider its nuances.
That being said, the incoming changes will give foreign workers more options in the rental market. The UK’s rental market is more expensive, on average, than other countries in Europe. However, the new rules for Skilled Worker visas will make the UK more attractive, which, in turn, could help the rental market remain buoyant in Scotland and other parts of the nation.
Further Reading:
3. Scottish rental averages for 2023
