5 things you need to know about moving your business from south to north

21 Jul 2021 5 things you need to know about moving your business from south to north

London and the south east have traditionally been seen as the epicentre of UK business.

But while the capital continues to dominate, growing numbers of companies are relocating to the north, lured by financial incentives, cheaper rents and lower overheads. This trend, known as north-shoring, has been adopted by a number of big name brands including Freshfields, the BBC, Channel 4 and Burberry.

And in the wake of the pandemic, even more organisations are choosing to base themselves in northern England. The Bank of England announced in April that it was planning move some of its staff out of London and create a northern hub in Leeds, while the Treasury is planning to establish a base in Darlington and establish a national infrastructure bank in Leeds.

Andrew Porter Ltd has extensive experience of helping business relocate to new locations all over the UK, including popular northern cities like Leeds and Manchester. Here’s what you need to know if you’re thinking about establishing a new base in the north of the country:

  1. Rents are much lower

The cost of renting business premises in the north is much lower than in London. According to property consultancy Cushman & Wakefield, prime office space in the West End of London typically cost £110 per square foot, followed by the City of London with rents of £67.50 per square foot. In contrast, prime rents in Manchester were an average of £33.50 per square foot and in Leeds, they were £30. Large industrial buildings like warehouses and distribution centres typically costs £17.50 per square foot in London, according to data on Statista. But northern locations are much less expensive with prime rents for industrial space costing £5.50 per square foot in the north east, £6.25 in Yorkshire and Humber and £6.75 in the north west.

 

  1. It’s easy to reach the rest of the country

London can seem like a bit of a bubble surrounded by the M25. However, travelling between northern cities is often quicker and more convenient than battling your way from one end of the capital to the other. The M6 and the M1 motorways connect the north of England to the south and there is a well-connected rail network linking large cities with each other and with London. The fastest train journey from London to Manchester is just over two hours, while it is also possible to get from Leeds to the capital in two hours. There are also a number of international airports in the north, including Manchester which is the third largest in the UK.

 

  1. Labour costs are lower

Average wages in the north are lower as is the cost of living. This means you are likely to be able to recruit staff for lower salaries than you would in London. Many public and private firms also pay London weighting – an additional rate of pay which recognises it is more expensive to live in and travel to the capital than other parts of the country. Figures from Statista for 2020 show that the average salary in London was £41,017 but in northern areas pay was typically more than £10,000 lower. In the north west, people earned an average of £29,558, while pay in Yorkshire and Humber was £28,745 and £27,856 in the north east.

 

  1. There’s fresh graduate talent ready to recruit

Most of the UK’s universities are based outside of London and many graduates choose to stay in the same city they studied in. Universities like Leeds, Manchester, Newcastle-upon-Tyne, Sheffield and Liverpool have a pool of talented young people looking for work after graduation.

 

  1. Shorter commutes mean better work-life balance

The average Londoner spends 74 minutes commuting every day, according to research by Instant Offices. Data from the 2011 census suggests people in London live an average of 62km away from their place of work, while in Manchester it is 38km and in Leeds it is 32km. Shorter commuting times will mean your workforce has a better work-life balance, which can mean they feel happier, more motivated and more productive at work. Many northern cities also have green spaces on their doorstep. For example, one third of Sheffield is actually in the Peak District.

If you’re planning a business relocation in the UK or abroad, the team at Andrew Porter today on 0800 389 1222 to find out how we can help.

 

 

 

 

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