Soaring house prices and rocketing rents are costing London\u2019s economy over \u00a31bn each year, according to a new report out today. The study \u2013 published by a new campaign to increase London\u2019s housing supply called \u201cFifty Thousand Homes\u201d \u2013 says employers across multiple sectors are facing more competition and staff retention problems as a result of the capital\u2019s housing crisis.<\/p>\n
Citing new research conducted by the Centre for Economics and Business Research (CEBR), Fifty Thousand Homes says that businesses are facing a \u00a35.4bn wage premium this year, equivalent to \u00a31,720 per person, in order to compensate for employees\u2019 housing costs.<\/p>\n
The CEBR also projected that nearly 11,000 additional jobs could have been created in the capital in 2015 if the cost of housing was lower. The researchers also said that \u201cunnecessarily high\u201d housing costs are removing \u00a32.7bn a year in consumer spending from the capital\u2019s economy, while driving millions of workers outside of London because they cannot afford to live in the capital.<\/p>\n
Using average salary data for various occupations, the CEBR found that workers such as shop attendants and restaurant employees would have to pay their entire pre-tax salary to rent an average private home in London. Social workers, librarians and postal workers would have to pay more than half of their salaries in order to afford to live in the capital.<\/p>\n
Commenting on the research, Scott Corfe, an associate director at the CEBR, warned that the cost of housing \u201crisks undermining the capital\u2019s position as a global centre of enterprise, talent and success\u201d.<\/p>\n
Baroness Jo Valentine, chief executive of the business group London First, agreed, saying: \u201cIf we carry on as things stand, in 10 years\u2019 time London will be a no-go zone for employees across sectors and at almost all levels.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"
Soaring house prices and rocketing rents are costing London\u2019s economy over \u00a31bn each year, according to a new report out today. The study \u2013 published by a new campaign to increase London\u2019s housing supply called \u201cFifty Thousand Homes\u201d \u2013 says employers across multiple sectors are facing more competition and staff retention problems as a result […]<\/p>\n","protected":false},"author":9,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"","_et_pb_old_content":"","_et_gb_content_width":"","jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[3,1],"tags":[],"class_list":["post-1419","post","type-post","status-publish","format-standard","hentry","category-news","category-uncategorized"],"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/p9PjAq-mT","_links":{"self":[{"href":"https:\/\/poseidon-gp.com\/property\/wp-json\/wp\/v2\/posts\/1419","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/poseidon-gp.com\/property\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/poseidon-gp.com\/property\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/poseidon-gp.com\/property\/wp-json\/wp\/v2\/users\/9"}],"replies":[{"embeddable":true,"href":"https:\/\/poseidon-gp.com\/property\/wp-json\/wp\/v2\/comments?post=1419"}],"version-history":[{"count":0,"href":"https:\/\/poseidon-gp.com\/property\/wp-json\/wp\/v2\/posts\/1419\/revisions"}],"wp:attachment":[{"href":"https:\/\/poseidon-gp.com\/property\/wp-json\/wp\/v2\/media?parent=1419"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/poseidon-gp.com\/property\/wp-json\/wp\/v2\/categories?post=1419"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/poseidon-gp.com\/property\/wp-json\/wp\/v2\/tags?post=1419"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}