A leading business consultancy has warned that London’s high rents mean many companies in the capital are struggling to recruit staff as younger jobseekers look for employment elsewhere in order to access lower-cost homes.

Blick Rothenberg says urgent action is needed from Labour to fix this before the capital becomes like Dublin, where some employers have been forced to hire homes to recruit talent.

One recent lettings survey showed the average rent for a property in London has reached £2,103 a month, up 5.9% year-on-year. On the ground this means many first-jobbers are facing rental costs of £1,000 a month as ‘the norm’.

“Recruitment teams at major employers in London, especially in the South East, are reporting that graduates who had accepted places on training contracts with a September 24th start are deciding instead to accept jobs in other cities, citing the cost of renting a home as a major factor,” says Heather Powell (pictured), Head of Property Blick Rothenberg.

Out of London

“And even higher earners are deciding to move out of the region because the size, and quality of the home they can afford is significantly greater away from London.

“This could lead to London experiencing the same housing crisis as Ireland.

“Housing costs in Dublin are among the highest in the EU, and major employers are having to rent or buy homes for their employees.

“Ryanair Holdings, the food retailer Musgrove and Windmill Healthcare group have brought or rented a combined 103 properties in Dublin for their staff.”

Affordable

Powell is calling for Labour to directly fund more affordable housing in London to take the pressure off the private rented sector and reduce prices.

“Affordable housing, especially in London, is required to facilitate the economic expansion of the UK economy, on which all [Labour’s] plans are predicated to be delivered,” she adds.