Businesses in London could soon face the prospect of buying or renting homes for their employees to prevent losing them, as the UK government is warned to avoid replicating the housing crisis seen in Ireland.
This caution comes from leading audit, tax, and business advisory firm Blick Rothenberg.
Heather Powell, Head of Property at Blick Rothenberg, highlighted the growing concern: “Recruitment teams at major employers in London, particularly in the South East, are reporting that graduates who had accepted places on training contracts for a September 24th start are instead opting for jobs in other cities. The high cost of renting in London is a major deterrent. Even higher earners are moving out of the region for better and more affordable housing options.”
Powell drew a parallel to the situation in Dublin, where housing costs are among the highest in the EU. She noted, “Major employers in Dublin, such as Ryanair Holdings, Musgrove, and Windmill Healthcare group, have had to rent or buy over 103 properties to house their employees.”
Without intervention, Powell warns, London could face a similar crisis. “If the UK Government does not allocate further funding for affordable housing, London businesses might have no option but to invest in property to retain their workforce. This would significantly increase both the capital investment and operational costs for businesses operating in London.”
Affordable housing is critical for the economic expansion on which the UK Government’s plans depend, Powell stressed. “Great care must be taken to avoid a situation similar to Dublin’s housing crisis, which has created significant challenges for businesses.”
The UK Government has pledged to ensure the construction of 1.5 million new homes during the next parliamentary term through planning reforms. However, Powell noted a critical issue: “Those homes need 1.5 million buyers. Individuals and social housing providers currently lack the funding or means to raise the necessary funds to purchase these homes.”
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UK Government urged to avoid replicating Irish housing crisis