26 April 2018

  |  CBI London

Update

London Business Survey

Housing continues to impact London firms’ according to the London Business Survey.



Click on the picture above to listen to the London Business Survey podcast

The CBI/CBRE London Business Survey has launched its sixth edition, which focuses on the key issues impacting firms in the capital. This survey focused on the London business climate, contingency plans post Brexit, the impact a lack of housing is having on business recruitment and retention and infrastructure priorities.

Read the full report

The headline messages from this survey are on housing with a lack of affordable housing, continuing to negatively impact a firms’ ability to recruit and retain staff. Two-thirds of business reported that this has the greatest impact on the recruitment and retention of entry-level staff (66%). The housing shortage is also an issue for senior employees, with three fifths (59%) of the capital’s firms citing it as an issue for recruiting mid-level managerial staff. As a result, nearly half of firms (44%) are offering premium salaries to recruit and retain staff and over a quarter (28%) of businesses said employees are having to leave their jobs because they cannot afford to live in the local area.

On business prospects the survey showed that optimism is slowly recovering in the capital. Nearly a quarter of firms (22%) feel more optimistic about the economy over the next six months compared with only ten percent in Q3 last year. This is promising and by a small margin, is the fastest rise in optimism since 2015.

Uncertainty over the UK’s future relationship with Europe continues to be the biggest issue for firms (66%). Over a third of firms (35%) report to having a contingency plan in place post Brexit with just over a quarter of firms (26%) planning to produce one in the future.

On infrastructure, Crossrail 2 (64%) continues to be the biggest priority, followed closely by Heathrow airport expansion (52%).

The survey was launched via podcast and guest speakers included Chair of the London Assembly Jeannette Arnold, CEO of Osborne, Andy Steele, and Senior Research Director at CBRE, Kevin McCauley.

Listen to the London Business Survey podcast

If you would like further details on the survey or would like to partner with the CBI on future editions, then please contact sana.nabi@cbi.org.uk