A far greater number of companies in London are confident about their prospects than the proportion last year, reports realbusiness.co.uk.
Research from CBI/KPMG as part of their London Business Survey shows 70 per cent of capital firms displaying optimism about the economy ahead of the next six months – 44 per cent higher than 2013.
The figures show that London firms are confident and hiring, with the majority (56 per cent) looking to employ more workers over the course of 2014. As for their own prospects, a similar proportion (51 per cent) are predicting brighter times for their businesses over the next ten months.
One of the very few warnings highlighted by the study is the effect of rising house prices on London’s economy. According to cbi.org.uk, a quarter of those surveyed said the cost of housing is hindering London’s global competitiveness, mainly due to staff being priced out of central areas.
Sara Parker, CBI director for London, said that London firms are feeling increasingly confident about their prospects going into the future but the lack of affordable housing is creating its fair share of worries.
“Many firms are telling us that recruiting and retaining staff is getting tough because people are being priced out of local markets and are forced to move further and further away from their workplace,” she added.