London ‘can’t simply be a metropolis for the rich’ says billionaire IWG founder Mark Dixon
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he boss of serviced workplaces large IWG right this moment blasted an absence of sound authorities coverage on reasonably priced housing because the agency reported a surge in demand for workspace within the suburbs.
Mark Dixon, who based the enterprise in 1989, instructed the Standard: “The affordability of London housing is not very good [and] people are fed up with the cost of travel.
“You’ll only get people back to an office in London if they live close by.
“It’s about government policy and local London policy.”
Dixon mentioned the agency was eyeing opening extra websites within the capital’s suburban districts to match new working developments. A brand new website will open shortly in Battersea, with extra on the best way for Barnet, Lambeth and Hampstead.
“London can’t just be a city for the wealthy,” mentioned Dixon, who has a web price of $1 billion in keeping with an estimate by Forbes.
“We’re seeing governments [overseas] starting to embrace the provision of affordable housing.
“That’s what they’re doing in Paris and New York.”
It comes amid a confrontation between Prime Minister Rishi Sunak and London Mayor Sadiq Khan over a scarcity of housing within the capital.
Sunak accused Khan of “failing to deliver” on housebuilding after he unveiled a £200 million dedication to constructing new houses on brownfield websites within the capital.
But Khan hit again, describing the remarks as “desperate nonsense.”
“Are you the same guy who dropped his housebuilding targets? Because I’m the guy who started building more council homes than the rest of England combined,” he mentioned.
There had been 25,658 reasonably priced housing begins in London within the yr to March, in keeping with knowledge by the Greater London Authority, a rise of 36% on the earlier yr, whereas completions within the capital rose 35% to 13,954.
IWG, previously generally known as Regus, right this moment mentioned it had seen an acceleration in demand for office space as main employers ditched main head workplaces in favour of smaller, versatile options. IWG mentioned it had signed contracts on 400 new areas within the first six months of the yr in a bid to maintain tempo with demand.
Revenue within the first half of 2023 rose 14% to £1.5 billion, whereas gross earnings had been up 37% to £297 million.
Dixon mentioned companies within the banking and insurance coverage sectors have been amongst these most prepared to shift from giant head workplaces to smaller native outposts.
“Companies need flexibility – they don’t know what their business will look like in 5 years’ time,” he mentioned.