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Council houses and first time buyers should be priority for £3.15bn housing cashpot say businesses

The £3.15bn currently set aside for new houses in the capital should prioritise first time buyers and council housing, according to a new survey of London’s business leaders.

Carried out by London Chamber of Commerce and Industry (LCCI), the survey canvassed 504 decisionmakers across the capital and found that 41% of them thought the multi-billion pound housing cash should focus on homes for first time buyers.

This was followed by 35% who believe council housing should also be similarly prioritised.

Overall, 54% ranked council housing in their top two priorities while seven in ten (69%) ranked homes for first time buyers in their top two, highlighting the ongoing affordability crisis enveloping London’s property market.

Comparatively, other schemes aimed at remedying the chronic problem of affordability in the capital fared less well, with just 13% of respondents identifying share ownership as their main priority while just 10% believe privately rented housing should be prioritised.

Chief Executive of LCCI, Colin Stanbridge commented: “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 poll found that 48% of business leaders surveyed considered a lack of housing one of the top three barriers to maintaining London’s competitiveness, highlighting how housing has transcended the political and social to become an economic and business problem too.

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