Companies in London may quickly face the prospect of shopping for or renting properties for his or her staff to forestall dropping them, because the UK authorities is warned to keep away from replicating the housing disaster seen in Eire.
This warning comes from main audit, tax, and enterprise advisory agency Blick Rothenberg.
Heather Powell, Head of Property at Blick Rothenberg, highlighted the rising 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 state of affairs in Dublin, the place housing prices are among the many highest within the EU. She famous, “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.”
With out intervention, Powell warns, London may face an analogous disaster. “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.”
Inexpensive housing is crucial for the financial growth on which the UK Authorities’s plans rely, Powell careworn. “Great care must be taken to avoid a situation similar to Dublin’s housing crisis, which has created significant challenges for businesses.”
The UK Authorities has pledged to make sure the development of 1.5 million new properties in the course of the subsequent parliamentary time period by way of planning reforms. Nonetheless, Powell famous a crucial difficulty: “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.”
