London now has the highest prices for rent in the world. This will hurt individuals and businesses. The gentrification makes it so that only the richest can live in London proper. When that is the case, there will be fewer people willing to work menial jobs that all businesses have.
I think that London's rent problem would definitely make it harder for businesses. Paying rent is a big part of a businesses expenses. When this is messed with in any way it can definitely hurt businesses greatly. They need to have a place to rent that is reliable and has a set contract.
The cost of rent is an expense for every household. The amount of income left over after paying rent determines what other items the family can afford that pay period. Food and utilities are usually next in the priority list. Reducing available income also reduces potential revenue for businesses. And as cost of living soars, the potential labor pool shrinks. Both aspects offer serious challenges for businesses, who need both customers and employees. A business cannot stay afloat without customers to serve, and employees to serve them.
They will drive people out as the suburbs expand and you can get a greater return on your money meanwhile for upper class they might opt out of renting and ride the bubble as one report in Times of Loden cited\ convince the market the flats are worth that much, it will set a new level. Again, as an investor, that is not necessarily a bad thing as it is increasing the value of your investment.
Because of how great Londen is I feel people will pay the rent much as they do here in the United States in places like New York. i feel a greater issiue will be threats liek ICIS and terror not the coast of rent persay.