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rantnrave

And it's about time too...

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Worries over housing spread to the boardrooms of British businesses

https://www.propertyindustryeye.com/worries-over-housing-spread-to-the-boardrooms-of-british-businesses/

Three-quarters of business leaders believe that the housing market is having a negative impact.

Over half (55%) say that they have lost staff because employees either cannot afford to live in the area or are unwilling to commute.

Almost three-quarters (73%) of the 1,000 executives and business owners polled by Strutt & Parker say they are struggling to recruit because of local high housing costs.

The same number would consider relocating to a cheaper area.

Others (71%) would consider investing in housing for their staff, and some are already actively doing so.

The businesses say that the cost of housing has had three major effects on them – it has forced them to pay higher wages, resulted in a lack of skilled workers, and slowed their expansion.

Strutt & Parker also found that housing costs are a deciding factor when it comes to employees deciding whether or not to accept a new job, with 85% saying that it is a critical issue.

 

PS - The comment at the bottom of the article is laughable

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Have decided to be much more upfront about this in my dealings with potential new employers.

Looked at a vacancy in Brighton, which had no advertised salary. Contacted them, and when they replied with the figure, I told them that amount was nowhere near enough for me to consider moving to the area given the very high cost of local housing.

Another employer I've had my eye on out in Suffolk was also recruiting recently. The advert said that the organisation was in the process of expanding and was therefore splitting the team into two office locations. The areas they had chosen to relocate to were Cambridge and London. Dropped them an email and said that because of the high housing costs in these two locations, I would not be putting in an application.

We've also just lost a very skilled 31 year-old who was, behind-the-scenes, being looked at for significant advancement. He announced one day that he was moving a hundred miles away to take a job that meant he could live back at home and save money. "There's no way I can ever afford to buy a house if I stay," he said on the way out. One very, very miffed CEO (Boomer) who never saw that coming.

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I got a 20% increase, part of my justification is that with the living costs, I don't feel like staying much longer otherwise. Make them do the maths. It works.

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Theres has been a strucural shift in London /South employment.

From the mid 80s more n more had gone to work in Finsec, where an O level pass in Maths in 19787 would set you up for a middle manager job in your mid 40s at 70k- 80k.

Since 2007ish these  jobs have decimated, in the true since.

I know of towns where 50% of the private sector worked in finsec, proppimg up the other 50% of hairdressers, builders etc and the public sector.

90% of these jobs are gone. The old buildings are vonverted to oap flats, half empty.

In my travelling, i go to a few smaller, high tech - degree and 10 years experience rather than scapping an o level pass - who go we need to get xxx skill.

I point out that these people will be mid 30s maybe with a young family.

The cost that person will be a 4 bedroom house divided by 3.

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18 minutes ago, rantnrave said:

Have decided to be much more upfront about this in my dealings with potential new employers.

Looked at a vacancy in Brighton, which had no advertised salary. Contacted them, and when they replied with the figure, I told them that amount was nowhere near enough for me to consider moving to the area given the very high cost of local housing.

Another employer I've had my eye on out in Suffolk was also recruiting recently. The advert said that the organisation was in the process of expanding and was therefore splitting the team into two office locations. The areas they had chosen to relocate to were Cambridge and London. Dropped them an email and said that because of the high housing costs in these two locations, I would not be putting in an application.

We've also just lost a very skilled 31 year-old who was, behind-the-scenes, being looked at for significant advancement. He announced one day that he was moving a hundred miles away to take a job that meant he could live back at home and save money. "There's no way I can ever afford to buy a house if I stay," he said on the way out. One very, very miffed CEO (Boomer) who never saw that coming.

I go blue in tge face telling people to put a salary in job ads.

Otherwise you will get no interest.

If you dont know how much a certain skill will cost you in the South then you need to sack your hr and board.

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26 minutes ago, rantnrave said:

...He announced one day that he was moving a hundred miles away to take a job that meant he could live back at home and save money. "There's no way I can ever afford to buy a house if I stay," he said on the way out.

That may have suited him, but the effect you describe only makes business consider this sort of thing

https://www.standard.co.uk/news/uk/dysons-decision-to-move-head-office-from-uk-to-singapore-nothing-to-do-with-brexit-a4045931.html

If you want to buy a house, house prices have to reset and homeowners will have to be forced to sell when they don't want to - or - there is massive home building scheme (ain't going to happen)

Edited by rockerboy

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12 minutes ago, rockerboy said:

That may have suited him, but the effect you describe only makes business consider this sort of thing

https://www.standard.co.uk/news/uk/dysons-decision-to-move-head-office-from-uk-to-singapore-nothing-to-do-with-brexit-a4045931.html

If you want to buy a house, house prices have to reset and homeowners will have to be forced to sell when they don't want to - or - there is massive home building scheme (ain't going to happen)

A massive home building scheme is the Labour Party's No. 1 policy objective. It is going to happen.

https://labour.org.uk/issues/housing-for-the-many/

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1 hour ago, rantnrave said:

PS - The comment at the bottom of the article is laughable

Those comments are embarrassing - property is a market, businesses should pay their staff more, landlords need tax relief, waah. The "property industry" is so used to the epic distortions in the UK land market that they've become like fish who don't realise they're surrounded by water.

Any other industry that was failing so comprehensively to deliver what the end users want would be taken to task by politicians.

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23 minutes ago, spyguy said:

I go blue in tge face telling people to put a salary in job ads.

Otherwise you will get no interest.

If you dont know how much a certain skill will cost you in the South then you need to sack your hr and board.

I remember when I was at university in the early 2000s it was normal in my field (biomedical research) for private sector job ads to state the salary. That all disappeared a few years later - in hindsight clearly a sign of the major wage suppression that was underway. I guess salaries will return to job ads when the wage suppression is ending.

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25 minutes ago, rockerboy said:

That may have suited him, but the effect you describe only makes business consider this sort of thing

https://www.standard.co.uk/news/uk/dysons-decision-to-move-head-office-from-uk-to-singapore-nothing-to-do-with-brexit-a4045931.html

Funny that capitalists have to move to a country where the residential property market is run on near-communist lines in order not to be strangled by the cost of land.

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3 minutes ago, Dorkins said:

I remember when I was at university in the early 2000s it was normal in my field (biomedical research) for private sector job ads to state the salary. That all disappeared a few years later - in hindsight clearly a sign of the major wage suppression that was underway. I guess salaries will return to job ads when the wage suppression is ending.

Im not sure its wage suppression, more cluelessness wishful thinking.

As HPI went far ahead of wages most orgs sort of froze and went to running off thier existing staff.

After 20 years of that, those 40yo in 2000 are now touching 60 and theres noone to follow them.

Mix in massive structural shift of more software, needing fewer, higher skilled staff and orgs are in trouble.

I see it all the time - spy, how do we get someone with your skillset? Pay them lots of money.

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15 minutes ago, Dorkins said:

Funny that capitalists have to move to a country where the residential property market is run on near-communist lines in order not to be strangled by the cost of land.

Yes - you could say for the majority in each country in the world,  we're all in this together - a global race to the bottom wage, all thinking we're different and can briefly stop the tide."just for me" ...Meanwhile global business continues to go for lower cost.

Not sure what to think about the  "near-communist" lines comment. Is it something we should aspire to be controled by or avoid?...Hmmm...For me, "near-communist" is a term that describes a system more "totalitarian" than we currently live under - pretty sure none of us want to go in that direction (unless of course, you are a communist :))?

Edited by rockerboy

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35 minutes ago, rockerboy said:

That may have suited him, but the effect you describe only makes business consider this sort of thing

https://www.standard.co.uk/news/uk/dysons-decision-to-move-head-office-from-uk-to-singapore-nothing-to-do-with-brexit-a4045931.html

If you want to buy a house, house prices have to reset and homeowners will have to be forced to sell when they don't want to - or - there is massive home building scheme (ain't going to happen)

Have you seen the price of skilled labour in Singapore?

Hes not going there for cheap labour.

Or cheap land.

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1 minute ago, spyguy said:

Have you seen the price of skilled labour in Singapore?

Hes not going there for cheap labour.

Or cheap land.

A skilled worker in Singapore will get much better accommodation than their London equivalent (assuming neither already owns property).

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Just now, Dorkins said:

A skilled worker in Singapore will get much better accommodation than their London equivalent (assuming neither already owns property).

Singapore offers subbed housing.

Better  and cheaper healthcare and schools.

And much higher wages.

And better infrastructure.

Not many migrants in bennies or chewing gum though.

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4 minutes ago, Dorkins said:

I remember when I was at university in the early 2000s it was normal in my field (biomedical research) for private sector job ads to state the salary. That all disappeared a few years later - in hindsight clearly a sign of the major wage suppression that was underway. I guess salaries will return to job ads when the wage suppression is ending.

There seems to be a perception on the part of employers that the supply of  suitable labour is plentiful.

It is maybe, if the job is basic enough. One of my last recruitment exercises attracted 92 applicants which were narrowed down to a dozen contenders.

The first girl was, likeable, massive and very tall but questions revealed she would be of no use whatever. The second was barely half the height and double the width, covered in tattoos, rings poking out everywhere and really rough. Just about could have done the job but there would have been a fight by lunchtime on the first day.

You get the general idea except it got much worse. Reception (which wasn't ours) literally gagged every time they called to tell me the next one was there.

Employment agency guy told me once the difference for him between a recession and not was that a recession meant ploughing through far more folk from middle earth until you either found vaguely a runner or just gave up.

 

 

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3 minutes ago, aheadofthecurve said:

Dianne Abbot said we're going to build 230billion houses in 6 weeks and it will cost a fiver. Problem solved lads.

Hahahahaha so funny I ruptured a kidney. The Tories have had almost a decade to do something about the cost of housing, all they did was pump the price up further by stimulating demand. It's the reason they lost their majority in 2017 and will go into opposition in 2022. Failure to deliver housing to workers = lose power, welcome to democracy.

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1 minute ago, Dorkins said:

Hahahahaha so funny I ruptured a kidney. The Tories have had almost a decade to do something about the cost of housing, all they did was pump the price up further by stimulating demand. It's the reason they lost their majority in 2017 and will go into opposition in 2022. Failure to deliver housing to workers = lose power, welcome to democracy.

That's what they deserve but I still think hung parliament. Labour just isn't convincing, another surge in political correctness would of itself stop me supporting them, which is like to do. 

Monster Raving Looney it is then.

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2 minutes ago, Dorkins said:

Hahahahaha so funny I ruptured a kidney. The Tories have had almost a decade to do something about the cost of housing, all they did was pump the price up further by stimulating demand. It's the reason they lost their majority in 2017 and will go into opposition in 2022. Failure to deliver housing to workers = lose power, welcome to democracy.

Not that I credit the tories but leaving the EU and ending freedom of movement will itself solve the housing crisis. We're artificially expanding our population at a greater rate than we're building houses and until that dynamic is changed we will always have a housing crisis.

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12 minutes ago, aheadofthecurve said:

Dianne Abbot said we're going to build 230billion houses in 6 weeks and it will cost a fiver. Problem solved lads.

George Osborne said he'd balance the budget by 2015.

Still waiting.

 

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  • 294 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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