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Affordable housing shortage means London businesses struggling to recruit workers, survey finds
A shortage of affordable housing is alienating employees from the London job market and causing recruitment problems for businesses, according to the Confederation of British Industry (CBI).
In response to a survey conducted by the business organisation CBI and consultancy CBRE, a record 66% of 176 firms said they believe that housing costs have negatively impacted their ability to recruit entry-level staff, a 9% increase from 2015.
A further 59% of firms cited it as an issue for recruiting mid-level managerial staff, compared to 45% in 2015.
Meanwhile, 28% of firms reported that some of their employees had left their jobs because they could not afford to live in the local area. This was despite 44% of firms offering premium salaries to retain workers.
Eddie Curzon, director for London and Thames Valley at CBI, said: “This survey speaks loud and clear – London’s housing shortage is a ticking timebomb.”
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He added that the fact 62% of firms do not believe the housing market will become more affordable in the next three years represented “a stark challenge” for the capital.
The research comes at a time when there is a lack of affordable housing to buy and rent in London. According to latest figures from the Office of National Statistics, the average house price in London is £482,000, compared with £245,000 nationwide.
In March, research by construction consultants McBains revealed that less than one in five homes built in London over the next 12 months will be classed as affordable.
The CBI and CBRE are calling on the government to increase the supply of affordable homes. Adam Hetherington, managing director of CBRE, added: “The government must take heed of the key issues such as housing, business rates and infrastructure which are impeding businesses ability for future growth.”
