A survey of small businesses in London by property consultancy JLL has revealed that none of them have plans to relocate overseas. This news comes despite Brexit uncertainty and rents increasing by 40%.
The Technology, Media and Telecommunications (TMT) cluster in London has concentrated in Shoreditch, Clerkenwell and Aldgate over the past few years. Technology in particular has concentrated in Shoreditch.
Jon Neale, Head of UK Research at JLL, said: “The businesses we spoke to were very keen to stay in the area - the image helps them recruit and retain the best staff, and it appears to impress clients too.”
The JLL survey proposes that the cluster will grow further north into Hackney and Islington, but points towards Whitechapel as the area which is best placed to attract relocating companies. It will benefit from a Crossrail station, due to open late next year, as well as being close to the existing cluster.
Some of this has already been seen in Aldgate, and it will spread further east over the next few years. Stratford may benefit for similar reasons. All offer real discounts to areas such as Clerkenwell and Shoreditch.
Meanwhile, with rents in Clerkenwell and Shoreditch set to rise above the City core, some relocating companies - particularly in the ‘hard tech' sector - may be attracted to the Square Mile. Amenities have improved, with more independent cafes and an improved retail and food offer. However, many more creative companies, both traditional and ‘digital', still have a real ‘fear of suits'.
To find out more about relocation to London, be sure to check out our free Moving to London Area Reports. They include the best areas to rent a home and include an estimate of rental costs.
When it comes to moving people for business purposes, it’s also important for companies to provide them with first class, VIP-level relocation support to make the transition as smooth and easy as possible for them. This makes them feel valued by their employer and enhances loyalty, retention and productivity.
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