Will House Prices Affect Skill Shortages?

Will House Prices Affect Skill Shortages?

London house prices may exacerbate potential skill shortages in finance

Research by a UK finance recruitment consultancy has revealed that employers are expecting difficulties in recruiting suitably qualified staff in the coming year.

75% of business leaders in this sector anticipate some difficulties in recruiting accountancy, finance, risk or compliance staff during 2016, although only 9% expect this to be ‘very difficult’. 50% believe that recruiting suitably qualified and experienced staff will be more difficult during the coming year than it was in the last 12 months, and only 5% expect that the situation will improve.

Risk, compliance and governance is one area where firms think that recruitment will be particularly hard – over 80% of replies suggested there would be difficulties. Accountancy and financial management ranked second in this respect, with recruitment expected to be easier in areas such as treasury, tax and financial administration.

71% of respondents believe that the skills shortages will lead to an increased personal workload that they may find difficulty in managing.

78% of employers expect salaries in the finance profession to rise in 2016, while 20% think they will stay the same and 2% think they will decrease. Most respondents expect a modest rise in salaries of less than 5%.

Risk management, leadership and commercial understanding are expected to be the most sought after skills in the coming year.

Because of the difficult recruitment situation, the research undertaken by Savant suggests that many firms will look to engage temporary support in areas such as accountancy, financial management and compliance to address the skills shortage.

For finance firms based in London, the ever-rising house prices in the capital could make recruitment even more difficult. London residents moved out of the capital in larger numbers in 2015 than at any stage in the last eight years.

According to research by estate agent Hamptons International, 63,000 London residents bought homes outside the capital in 2015, up by as much as two thirds compared to the previous year. The average house price in London is now more than £500,000, yet the average price in the north of England is £171,000, in Scotland it is £173,000 and in central England it is £180,000 – potentially powerful reasons for choosing to live in another part of the UK.

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