Long-term value for money

We were interested to read your article ("Employers to discuss paying for workers' homes", 16 January, page 7).

In May last year we completed an innovation and good practice report on behalf of the Housing Corporation.

The report, Affordable Housing for Key Workers, noted that employers of key workers can incur high costs of recruitment and retention, especially in areas where house prices are high. Vacancy and turnover rates can also be high and additional costs of temporary cover can be incurred, in addition to personnel staff and advertising costs.

Our analysis of recruitment and retention costs, and similar work completed by the Audit Commission, suggested that they can total around £5000 per person recruited.

Our study considered a funding regime that included modest financial contributions from employers. This in turn could help to limit the level of grant funding required to develop affordable housing for key workers. In this way, all sides (employers, employees and public sector grant providers) would benefit.

Those who wish to read our report should email douglas.birt@atisrealweatheralls.com.