Start-ups ‘flocking to Liverpool and Manchester’

LIVERPOOL has enjoyed the sharpest increase in demand for start-up office space among 14 major cities in the UK, according to research.

Demand on Merseyside shot up 44.5%, closely followed by Manchester, which enjoyed a surge of 43.5%, tempting new companies northward away from London.

In the capital, demand has increased by more than a third (36%) in the past year despite businesses in the capital currently paying on average £512 per desk per month in a serviced office – nearly triple the cost in Liverpool (£180).

Whilst Manchester is the third most expensive city for office space (£239 per month), this is still less than half the cost of a London office.

The research has been carried out by office space search engine, Officegenie.co.uk

It shows that whilst London is the birthplace of the UK’s tech start-up culture, northern metropolises are now gathering momentum.

Peter Ames, head of strategy, at Office Genie said: “It’s our northern cities which seem to be taking the lead in tempting new businesses away from London.

“Conscious of a historical – and persisting – north-south divide, huge efforts have been dedicated to the regeneration of the places that were once the powerhouses of our industrial economy.

“Home to Oasis, the Halle Orchestra, Coronation Street, and more recently, the BBC, Manchester is drawing in entrepreneurs in high volumes – and so too is it’s north west rival, Liverpool.

“With an investment of more than £7bn to the north of England, as set out in the 2014 Autumn Statement, and London rents sky-rocketing, we could be seeing the beginnings of a start-up exodus to the north.

“For start-ups looking for cheaper desk space in the capital, sharing an office could be a cost effective solution. In London, the average shared office desk costs around £432, which is 16% cheaper than renting the same desk in a serviced office space. So sharing could be the most compelling answer for what is a race for space in a competitive market.”

The figures are based on searches made through the Office Genie site which runs into the thousands. In 2014, 100,000 searches were made through the site UK-wide.

Andy Delaney, director at real estate advisors Colliers International and head of the agency’s newly-opened Liverpool office, said: “The cost-effective offering of flexible and quality space in our North West capitals of Liverpool and Manchester is exerting a magnetic pull on entrepreneurs seeking a financially viable home for fledgling businesses outside of the increasingly expensive capital.
 
“Liverpool is a fast growing centre for digital businesses with dedicated clusters at The Baltic Triangle and Baltic Creative while Greater Manchester offers locations such as Media City, The Sharp Project and recently announced plans for a £4m dedicated technology incubator hub in the Northern Quarter.

“All of this means that increasing numbers of entrepreneurs are turning off Silicon Roundabout in East London and heading up the M6.”

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