Sadiq Khan warns of brain drain over housing crisis – despite FAILING to build more homes
LONDON Mayor Sadiq Khan has warned businesses could be hit with a “brain drain” as staff members are priced out of the capital’s housing market – despite his failure to build thousands of homes every year.
Mr Khan said business owners in the capital had raised concerns they could not encourage staff to work in London because “of the cost of housing”.
This has resulted in a rise of workers leaving London to buy homes in areas they can afford.
But the mayor suffered embarrassment earlier this year following reports not a single affordable home has been built in 10 London boroughs over the current financial year.
This is despite the Labour mayor promising to construct 90,000 homes by 2021, with a minimum of 12,500 for the 2017/18 financial year.
But today, Mr Khan told City AM: “The biggest issue raised to me by chief executives and other employers is the housing crisis – the fact that they can’t get staff in London because of the cost of housing.
“That is why we are trying to rapidly increase the number of genuinely affordable homes in London.
“It is crucial, because otherwise Londoners aged between 30 and 40 are leaving London because they want to buy a property, go from a flat to a home, and what you don’t want is a brain drain.”
The housing crisis has been felt particularly harshly in London.
According to the latest figures made available by the Assembly, the average price for a house in London grew seven percent reaching a whopping £531,000.
In 2016, nearly 19,845 homes were left empty in the capital despite the growing demand for spaces to rent or buy.
While 23 per cent of the UK’s homeless population is currently located in London.
When Mr Khan was elected mayor in 2015, he promised to build 65,000 homes a year and half of new homes should be affordable housing.
However, he claims he inherited a “chronic lack” of genuinely affordable housing from former mayor Boris Johnson.
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