London housing costs hurt hiring, LCCI warns before Budget

London businesses have warned the Prime Minister that the capital’s housing costs are damaging their ability to hire and keep staff, and that growth “in every postcode” cannot be delivered if the forthcoming Budget makes London less competitive with rival international cities.

Polling commissioned for the launch of the London Chamber of Commerce and Industry’s (LCCI) Choose LDN campaign found that 74% of London business leaders say the cost of housing is limiting their ability to recruit and retain staff. The chamber, which has a business network of more than 12,000, said losing the next generation of talent would weaken the capital’s standing against other global cities and put jobs, investment and growth across Britain at risk.

The survey found that 70% of young people across the UK believe career opportunities are better in London than elsewhere, with just 11% saying they are better outside it. Yet 58% of those pursuing a career outside the capital believe London is too expensive to live or work in. Outside London, 28% of young people surveyed already own a suitable home; in London the figure is 13%.

LCCI said the gap between young people’s ambition and what they can afford was “deeply concerning” at a time when almost one million young people are not in work or education. The latest ONS figures put the number of 16 to 24 year olds not in education, employment or training at 981,000 in April to June 2026.

Among those already working in London, the capital retains its pull. Some 81% say they are happy working in London, 79% see a clear career benefit from being based there and 82% of young Londoners say career opportunities are better in the capital. But only 60% of young people living in London see their long-term future there. Asked what would attract them to move to the capital, 30% of young people named being able to afford property in the next 10 years, ahead of better pay on 25% and a job in their field on 20%.