Housing Shortage Threatens London’s Economic Future
London’s status as one of the pre-eminent cities in the world is rarely questioned. But its status as a global hub for business and a viable place to live is under serious threat due to the lack of housing which is affordable for the average worker.
New research conducted by FTI Consulting for MIPIM UK 2015 of more than 1,000 people who live or work in London found that an overwhelming majority felt that the high cost of housing would hold back businesses and discourage individuals from living in London.
A majority also felt that the private sector had failed in its efforts to provide a solution to the problem of unaffordable housing in London, and it was up to centralised bodies such as the Government or the Mayor of London to intervene.
To put the situation in context, in 2014 18,240 new homes were built in London, according to the Department for Communities and Local Government. This represents a 10% uplift on the 2013 figure, but the effect of the credit crunch is highlighted by the fact that 2014’s figure represents a 27% drop on 2007’s figure.