London’s rapidly rising property market is proving to be a headache for many companies wishing to locate their employees in the capital. As property prices and rents hit record levels, London has become the second most expensive city to house workers.
Hong Kong is the most expensive, with London following closely behind, while New York is in third place.
The cost of renting living and office space for a single employee rose to $115,000 (£68,804) last year, up 2% since 2012 and up a staggering 18% over the last five years, according to estate agents Savills.
In New York, prices rose by a huge 35% over the same five-year period, hitting $112,000 (£66,900) per employee in 2013.
But New York and London are small beer compared to the prices in Hong Kong, which was head and shoulders above other contenders with the price for locating staff there reaching $123,000 (£73,500) per employee.
However, London is only the fourth most expensive city for locating technology and creative firms, thanks to the emergence of Kings Cross and Old Street roundabout as desirable areas to locate.