London's housing crisis is holding the city's economy back, this reports shows.
What's this?
This report uses new economic analysis, carried out by NERA and commissioned by City Hall, London Councils, Trust for London and the G15, to explore the link between housing affordability and productivity in London.
It's the first time in the UK that there has been an attempt to model and quantify the relationship between housing affordability and productivity.
Key findings
- Economic growth and housing affordability are closely linked
- If housing affordability improved by just one per cent, productivity in London would increase by 0.14 per cent
- Across London this would lead to an economy that is £730 million larger each year
- Over ten years, this means that just a one percent increase in housing affordability could lead to a boost of over £7 billion to London's economy