Tuesday 28 March 2017

London businesses say new homes for first time buyers are a priority

Homes for first time buyers and council housing should be the priorities when considering how to spend the £3.15 billion set aside for new houses in London, business leaders have said.

A new survey by London Chamber of Commerce and Industry (LCCI) found that businesses prioritise homes for first time buyers (41%), followed by council housing (35%). More than half rank council housing among the top two priorities (54%) and seven in ten (69%) rank homes for first time buyers among the top two.

Only 13% believe shared ownership should be the main priority (47% among top two), followed by privately rented housing (10% as priority, 29% among top two).

Chief Executive of LCCI, Colin Stanbridge said: "We know that we are in the midst of a housing crisis and the effect on businesses cannot be underestimated. If skilled workers cannot afford to live in London businesses will not be able to attract the talent that is so vital for growth.

"This support for first time buyers is an indication of businesses' desire to recruit and retain young skilled workers in ever more competitive labour market.

"Similarly, the onus on social housing could be a sign of concerns about the loss of lower wage, lower skilled workers."

A previous LCCI survey found that 48% of London businesses though insufficient housing was one of the top three barriers to London's competitiveness.

In November Chancellor Philip Hammond announced plans to tackle London's housing crisis with a record £3.15 billion to build 90,000 affordable homes by mid 2021.

Chancellor Philip Hammond has also relaxed restrictions so that the cash can be used to support low-cost rents and shared ownership schemes.

ENDS

Media Contact
Katharine McGee
T: +44 (0)20 7203 1897
M: +44 (0)7827 241528
E: kmcgee@londonchamber.co.uk

NOTES TO EDITOR:
1. London Chamber of Commerce and Industry (LCCI) is the capital's largest and most representative business organisation, with members ranging in size from multi-national companies to SMEs and sole traders.
2. Colin Stanbridge, Chief Executive, is available for further comment and interview.
3. ComRes surveyed 504 London business decision makers online between 14 February and 2 March 2017.
Data was weighted to be representative of all London businesses by company size and broad industry sector.
ComRes is a member of the British Polling Council and abides by its rules. Data tables are available at www.comresglobal.com
4. ComRes surveyed 514 London business decision makers online between 18 August and 7 September 2015. Data was weighted to be representative of all London businesses by company size and broad industry sector.