Housing crisis 'threatens' London's competitiveness

Mr McCann says his staff live as far away as zone five which is "very restrictive"

A lack of affordable housing is threatening the capital's global competitiveness, according to a London Chamber of Commerce (LCC) poll.

Housing was cited as the key problem by 48% of London's residents and business leaders and 68% of its councillors.

Gerard McCann at the Mint Leaf restaurant in Haymarket said finding staff was "incredibly challenging" as they live so far out of the city.

LCC asked 1,700 people about the crucial factors for London's success.

Mr McCann said he had just lost a potential member of staff after a successful interview, as she lives in Orford.

"She had everything we wanted, but she just lives too far away," he said.

More than two-thirds of councillors and over half of businesses cited housing costs as problematic for people wanting to set up new businesses

Colin Stanbridge, chief executive of London Chamber of Commerce and Industry, said: "London is a phenomenal success story, but are we soon to become a victim of our own success?"

He said the research showed the city was "fast becoming an unaffordable place to set up shop and live".

Mr Stanbridge called on the government to make "better and more coordinated advice" available about funding for businesses.

'Hard' after crash

Sir Edward Lister from City Hall said post-2008 "we had a real shortage of cash".

"But we have got our [housing] numbers up," he added.

When asked about the biggest challenges for entrepreneurs, more than two-thirds of councillors and over half of businesses also cited housing costs.

The price of buying space to set up a business was also considered a big hurdle, with 49% of business leaders citing this factor as key in limiting London's competitiveness.

LCC conducted the poll through Com Res.