Could we see many southern based companies relocating their commercial property and office space, to the north of England?
It has been said, companies may soon be heading to the north in order to take advantage of cheaper commercial property prices.
Richard Horner, northern south sector regional executive for the National Association of Estate Agents, said the cost to both rent and to buy is cheaper in the north. He stated: ‘In the north the cost of living is cheaper, the cost of renting office accommodation is cheaper and the cost of buying office accommodation is cheaper.’
Mr Horner, went on to state that the vast amount of international capital, which is spent in London and the surrounding areas, makes it very difficult for local start up businesses to compete in the area. ‘In the south and in London you have … got a lot of international money so there is a microclimate in the London area that keeps the prices up and keeps them relatively stable’, he said.
He went on to declare that relocating to commercial property in the north of England, would make good financial sense for businesses and will dramatically cut down on a company’s expenditure.
With new research from zoopla.co.uk, illustrating that the price divide between the north and the south is still as strong as ever, Mr Horner may very well have a justifiable point. The property rich list asserted that the cheapest places to live in the UK are located in the north west and the north east, with Liverpool, Hull and Sunderland, coming out on top of the cheap list.
With cities such as Leeds and Manchester, offering fabulous commercial property in the North, Mr Horner’s prediction of a migration of business to the north may not be so farfetched. Manchester and Leeds, whilst offering better value than the south, can also be recognised as genuine UK commercial hubs, in which you can get everything you can in the south.
