It's claimed that four out of five employers in the South West think the lack of affordable housing is stalling economic growth.
Two thirds of those questioned in the survey by the National Housing Federation said building more homes would help them recruit staff - and 87% thought building more homes would stimulate the economy.
The Federation says high housing costs may also be deterring businesses from coming into Devon, as employers realise the wages they pay need to cover their workforce's accommodation needs.
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