Office Rental Costs Are Driving Start-Ups out of London

Rising office rental prices are pushing start-ups out of London and we're not surprised! It's no secret that London is an expensive city to live and work; new research reveals that it is now the third highest priced city to live in the world. But what effects is this having on office rental costs? The fierce marketplace has caused an acceleration in the price of office rent, particularly in popular destinations such as Shoreditch. So perhaps London is no longer the city of dreams for start-ups.

Since the late 1990s Shoreditch has developed a community of high-tech companies, giving it the name Tech City. The area has become a thriving digital ecosystem that boasts dozens of successful technology organisations. However, ironically it is the technology start-ups that are feeling the most pressure of expensive office rental costs in the area. The lack of affordable office prices is likely to drive start-ups out of the area.

According to Hubble, a company that specialises in the office rental market, 66% of start-ups are now considering moving out of the technology hub in Shoreditch. The rise in office rent makes it difficult for technology start-ups to stay in London. 62% of those asked said that costs of office rent would restrain business growth after a year. Research suggests that even though start-ups are considering moving out of London in their early years, they are likely to move back to the city after seeing business growth. This is good news for the most devoted London enthusiasts! But in the meantime start-ups simply cannot afford the unrealistic cost of rent and feel that by moving out of the city they will have a better chance of early growth.

London might not be the wisest option for start-up businesses who have a small budget, but areas outside of London can offer just as many benefits! Reading has become a considerable choice for start-ups, with excellent direct transport links to the UK's largest cities and a growing business ecosystem. With London being on the doorstep, which takes less than a half an hour commute, many people are choosing to relocate to Reading. The area offers much cheaper office rent that is within a small business owner's budget. Reading is also a great area for like-minded businesspeople to form connections and create business opportunities.

Many start-ups are opting for a virtual office package that provides small businesses with a professional business address, without the cost of the physical office space. For start-ups that are on a small budget, we highly recommend investing in a virtual office package since they offer a number of benefits for small business owners. The services are not just affordable but can save start-ups heaps of time! With a virtual office you can build trust with your customers by showing that you're a legitimate company with a professional office address.

Here at QV Offices we strive to support small businesses, offering the best quality services at an affordable rate. We understand small business owners' needs and take pleasure in helping small businesses grow.