Why you should consider moving your business out of London
Published by Pall Mall Estates on 4th November 2019 -
When it comes to the capital, one can’t deny that it can offer a lot to fledgling businesses and start-ups. Particularly when it comes to the pool of talent that is always right on the doorstep and the technological infrastructure of the city making it easy for young businesses to kick-start their online presence. Having said this, it’s crucial to note that there are numerous other regional cities also have lots of commercial benefits they bring to the table.
In 2018, the number of new businesses created was up by just under 60% on the previous year, which is extremely noteworthy considering the ambiguity for these young businesses created by Brexit. There could be several reasons for this, but arguably the main one is agile entrepreneurs taking the view that their businesses are more likely to develop steadily outside of the current climate in London. Not to mention the costs of office space in London with the average cost per person per month ranging from £650 to £1,500. To put this into perspective, in cities where great things are also happening in commerce such as Manchester and Birmingham, the price is possibly a quarter of the price.
Moreover, the allure of simply existing in London being for networking purposes and general exposure is quickly fading. In this day and age, businesses and professionals can connect so easily online, collaborating and sharing ideas without even meeting in real life. Additionally, devolving powers of local councils in regional cities means that entrepreneurs in these areas are to increasingly benefit over the coming years. Back in 2017, Manchester’s new mayor became the perfect example of how firms based in Manchester now have a genuine ‘champion’ for their achievements.
For argument's sake, it is worth considering the UK’s major urban areas outside of London and what they offer highly efficient and talent-hungry businesses.
Manchester is attracting significant levels of FDI
Manchester happens to be the number one UK city for foreign direct investment (FDI) levels, making it an ideal location for companies looking to take the next step in their growth. It is also a city with numerous industry strengths, such as advanced cybersecurity, healthcare, fintech and advanced materials, With fintech growing 50% in Manchester during the last decade alone. Excluding London, Manchester is the most popular place for university graduates in the UK, with 100,000 choosing to live there, creating a youthful, dynamic and determined talent pool.
Bristol boasts a well-educated talent pool and growing industry clusters
It is widely agreed that education is crucial for high-growth businesses requiring skilled, determined talent. Which makes the fact that more than half (54%) of Bristol’s available workforce is educated to at least degree level a vital attribute for the city. Furthermore, Bristol has the second biggest cluster for digital tech firms in the UK, turning over more than £8bn for the regional economy. Something about these regional cities that is often underestimated is their extremely efficient connections to London. Bristol, for example, has an airport, a seaport and direct rail links that will have you in London within an hour-and-a-half, demonstrating that London is never far away regardless.
Birmingham: a leader in start-up accelerator and incubator hubs
Whilst ‘Second City’ Birmingham is firmly in place as the UK’s second-largest economy after London. What's alluring about Birmingham is its plethora of tech start-ups and incubator hubs. With innovation projects such as Silicon Canal, Innovation Birmingham Campus and Steamhouse all making attempts to tap into the city’s technological flair. The 2022 Commonwealth Games taking place in Birmingham is also said to bring further exposure and investment for the city in the coming years.
At Pall Mall Estates, we focus on delivering high-value, low-cost business space nationwide. While we certainly have commercial premises to offer in and around Greater London, we also own and manage commercial property in many other leading urban areas across the UK, including Birmingham, Milton Keynes, Nottingham and many more regional towns and cities.
For more information on our available portfolio, get in touch with our experienced property professionals today on 020 8108 7078 or drop us a line using our online enquiry form.