How does London's housing crisis affect the UK economy?

London grapples with a deepening housing crisis, resulting in unprecedented levels of homelessness and families being priced out of the city. Experts attribute the capital's stagnant growth since the 2008 financial crisis to high housing costs and limited availability. Liam Sides from Oxford Economics asserts that London's economic struggles negatively affect the UK's overall productivity. A survey conducted by affordable housing provider Pocket Living reveals that 42% of young adults in London may be forced to relocate due to unaffordable housing. Additionally, nearly two-thirds of this demographic rely on borrowing to cover housing expenses.

Businesses are increasingly hiring for regional offices, with 58% of head office jobs in financial services now based outside London. This shift underscores the affordability crisis reshaping workforce dynamics and living patterns across the UK. Moving forward, either housing costs must decrease, or businesses must enhance compensation packages to attract talent.