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Economics, government & businessLatest NewsSkills shortages

High-price housing expands skills gap in London and South East

by dan thomas 14 Dec 2005
by dan thomas 14 Dec 2005

A lack of affordable housing in the South East is making the skills shortage worse for London employers than those elsewhere in the UK, according to research.


A study by the CBI and business services company KPMG shows that the problems associated with finding affordable, quality property in London and the South East is having an impact on three-quarters of the capital’s businesses.


As a result, many companies are facing a restricted labour pool and employers in the region are suffering from skills deficiencies, the report claims.


More than half of the 120 employers questioned say they are afraid of a growing skills gap over the next six months.


“London’s economic success is crucial to the UK as a whole, but inadequate housing supply is pushing up costs and making it more difficult for firms to recruit and retain the staff they need to sustain and grow their businesses,” said Sir Digby Jones, director-general of the CBI.


However, Ian Barlow, London senior partner at KPMG, said the 2012 Olympics should help address the shortfall in housing.


“The arrival of the Olympic Games to the South East in seven years will definitely act as a catalyst in the development of new affordable housing and will provide a lasting benefit for people and businesses across London,” he said.

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