Housing Affordability and Workforce Stability in the NHS: Evidence from England

Abstract

NHS’ employees in England are now under financial constraint due to the high cost of decent housing, as many of them are unable to afford suitable accommodation in their operational regions, particularly in London, the North East, and the North West. Therefore, the study examined the economic effect of rising housing cost on selected employees of National Health Service in England. The study sampled four-hundred (400) NHS employees by limiting the study areas to three areas of the nine in England, including London, the North East, and the North West, using the Taro Yamane approach (1967). Thereafter, logit regression analysis was applied. The descriptive analysis showed that 73.3% of sampled respondents were within an economic active age, while NHS has various unit of department and employees that ensures each residents in England receive comprehensive and universal health care services. The logit regression showed that housing cost as independent variable had an inverse effect on financial status and NHS retention, while utility charges, services charges and council tax showed direct effects. Also, house cost showed a direct effect on NHS recruitment. Implying that, when there is one-unit increases in housing cost, the employees is likely to see their income decrease by approximately 52.4%, while, rising housing cost among recruited employees of NHS is likely to reduce employee retention by 24.5%. The study concluded that rising housing cost among NHS employees worsen their financial status, as well as, reduced employees’ retention in the organisation. The study recommended that the NHS’ administration should embark on policies that provide housing options for its employees through provision of reasonable housing allowance that reflect economic reality or partnership with developers to provide moderate house for her employees.