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

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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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