London businesses call for government to prioritise first-time buyers

Helen Cahill
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London 2012 - Generic London Landmarks
A £3.15bn pot has been set aside for housebuilding in the capital (Source: Getty)

London businesses are calling on the government to prioritise spending on first-time buyers in the capital.

In his Autumn Statement, chancellor Philip Hammond announced he was setting aside £3.15bn to fund the building of 90,000 affordable homes in London by 2020-21.

He said that London was "one of the most vibrant, dynamic, productive cities in the world" and that the government wanted to stimulate housebuilding so that the city could retain its global status.

Read more: London is getting £3.15bn of funding for 90,000 affordable homes

Now, the London Chamber of Commerce and Industry (LCCI) is calling on the government make sure the new affordable homes are accessible to first-time buyers, so that the capital can retain the best workers.

In a survey of businesses, LCCI found that the highest proportion (41 per cent) thought that the spending should be geared towards first time buyers.

Chief executive of LCCI, Colin Stanbridge, said:

We know that we are in the midst of a housing crisis and the effect on businesses cannot be underestimated. If skilled workers cannot afford to live in London businesses will not be able to attract the talent that is so vital for growth.

This support for first-time buyers is an indication of business' desire to recruit and retain young skilled workers in an ever more competitive labour market.

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