London’s economy and businesses rely upon solving the housing shortage and high housing costs according to a report by Grant Thornton in partnership with Fifty Thousand Homes
The median house price in London has hit £470,000 causing eight in 10 businesses (84%), of those surveyed, to believe that these high housing costs pose a risk to the capital’s economic growth, with nearly half (48%) of employers taking steps to help their workforce deal with these costs.
Seven in 10 employers (72%) believe that the effect the housing costs and limited supply could have on their staff recruitment and retention is cause for concern, with 78% worried that this could have an impact on their ability to recruit in the future.
Half of employers worry that the housing crisis will put pressure on them to provide a higher wage.
Many businesses are so concerned that one in five would consider relocating to cope with the cost pressures.
However, the report shows that London businesses are taking steps to help their employees and businesses by offering loans to workers to pay for first month’s rent and deposits and providing subsidised transport to help manage the costs of longer commutes.
As well as, arranging preferential lending rates for home-buyers, taking out leases on multi-unit properties so flats can be offered to workers at reduced costs and there is also an interest in building new homes to rent out to employees.
Grant Thornton and Fifty Thousand Homes will launch an inquiry on 6 July to inquiry explore ways in which employers, the public sector and housebuilders can work together to improve the availability and affordability of housing in London.
Sacha Romanovitch, CEO, Grant Thornton UK LLP, said: ‘Following the result of the EU referendum it is more important than ever that we all work together to help the UK to build upon its strengths and ensure that our economy continues to grow.
‘Improving the affordability and supply of housing in London could mean happier, more productive employees, and a boost to our economy. More than that it could and should deliver better social integration, and a brighter, more vibrant future for our capital.’
Baroness Jo Valentine, chief executive at London First, one of the backers of Fifty Thousand Homes, said: ‘The housing crisis puts the capital’s competitiveness at risk. Unless we start building 50,000 homes a year, businesses will face increasing difficulties in attracting the talent they need.’
London employers and assistance to employees with housing report is here.
