Housing deficit putting London's job market at risk

Published by Max Salsbury for 24dash.com in Housing and also in Development, Environment

London's housing stock will not be able to cope with future demand, new research suggests.

And the report from property consultants Cluttons claims that the lack of housing will hold back the growth of the capital's job market.

400,000 jobs have been created in the capital since 2000. The report argues that employment is expected to rise over the next decade and that the lack of housing will hold back jobs growth.

The report says that London has the highest concentration of renters in the UK, claiming that private renting has doubled in the last 20 years. Despite the fact that new jobs created in the capital over the next decade will be disproportionately skewed to the highly skilled and higher earning, a growing proportion of households will find themselves unable to access home ownership due to the supply / demand imbalance.

Julian Briant, head of residential consultancy division, Cluttons, said:  “Decision makers have to question whether London’s potential to maintain its position as a world city is being curtailed by such a limited supply of housing stock. The answer can only be yes.

“Despite this, a growing and vibrant London offers a wide range of residential opportunities for both investors and developers. Small private landlords will continue to play an important role in the capital, including creating more units from the existing stock.

“However, the housing challenge we face needs radical solutions. Long term demand from highly qualified professionals at different stages of their careers and family lives presents a clear range of opportunities for investors taking a long view.”

Tony Pidgley, chairman, Berkeley Group, went on to say: “Housing can lead the recovery. The impact of delivering the shortfall in London alone would be 80,000 new jobs. But there is simply not enough urgency. We need clear government policy which encourages investment from home and aboard. London must welcome investors, not penalise them, if we want growth and prosperity."