London's housing crisis is costing the economy £1bn A YEAR

How can London’s housing crisis be solved?

London’s rocketing house prices are costing the UK economy over £1bn a year.

According to research by the Centre for Economics and Business Research (CEBR) and London First, businesses in the capital are bearing the brunt of soaring rents.

The study titled “Fifty Thousand Homes” found that businesses are facing costs worth over £5.4bn to provide for housing costs of their employees.

The study pointed out that London could have generated over 11,000 additional jobs if housing costs weren’t as exorbitant as they are presently.

The research also highlighted that over £2.7bn would be available to spend if the cost of housing was lower.

Baroness Jo Valentine, chief executive of London First, said: “This needless housing shortage needs urgent action. If we carry on as things stand, in 10 years’ time London will be a no-go zone for employees across sectors and at almost all levels.

“I want the next mayor of London to wake up each morning thinking about how to increase housebuilding – because only doubling our current levels of housebuilding to 50,000 a year will we solve this crisis.”

 

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Readers' comments (3)

  • Anonymous

    There would be no need for more housebuilding if the thousands of houses and flats just standing empty all over the capital were repaired and brought back into use.

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  • Anonymous

    Rent has gone up but not interest rates or pay, one other thing that has gone up is immigration.

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  • Wrong wrong!

    Its not too few houses but too many people. Its called overpopulation. Not just London but worldwide, resulting in pollution, global warming.

    The estimated sustainable world population is in the order of 20% of current. For the UK its estimated to be about 25-30 million.

    The sensible and logical short term solution is to move business and people out of London and make better use of what is already there.

    Building more houses is not the answer long term.

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