Investment Grew at the Rate 619 Per Cent in the North Tech Sector

Foreign Direct Investment in the UK

The UK is the epicentre of the technology revolution, and some leading tech companies, such as Amazon, Facebook, Alibaba etc., are shifting their offices to the north of the capital, mostly as these are cheaper and cost-effective cities. 

Asian investors are still buying property in Europe, and the Chinese constitute 50 per cent of the shoppers as per Real Capital Analytics data. Singaporean investor Ascendas REIT recently invested £257.5 million towards Griffen Group UK Holdings in UK logistics.

The UK government's announcement to increase stamp duty by 3 per cent for companies not registered to pay tax got a mixed response from overseas investors. The northern powerhouse in Britain, including Liverpool, Manchester, Leeds, Salford and others, are in the centre of the investment boom, with over 9000 schemes embarked in the last three years.  

Housing is the key driving force where the increase in office space grew 92 per cent, schools and universities grew 35 per cent and entertainment by 62 per cent. Construction activities doubled in many areas, and the largest rise in new homes was seen in Tower Hamlets.

Jobs

The northern powerhouse is the new investment hub where dramatic transformation has been pushed with the increase in investment towards local infrastructure, improved transportation, communication links, faster internet and inflow of businesses such as Burberry, KPMG, and BBC that led to the creation of new jobs such as up to 6000 new jobs in the hub of Leeds.

In 2017, the region attracted eight projects through foreign investment, the 10th highest, generating more than 7000 jobs. As a result, the unemployment level dropped during this time.

Connectively And Transportation

The transportation system in the north has improved. At the same time, the government plans to invest more than £100 billion by 2050. Other projects such as the renovation of Manchester Airport and Leeds Train station will further improve the transportation system to drive it comparable to London.

The rail route between Manchester and Leeds is expected to grow four times, from 800 seats to 3,000, by 2020 to meet the growing need.

Northern Tech Sector

Investment grew at a rate of 619 per cent in the northern tech sector between 2012 and 2017, which is the highest compared to any other European region. The highest investment came from the Chinese, who gambled on regeneration projects, mostly in Manchester and Sheffield. 

The government's Digital enterprise projects and the NorthInvest are transforming the local economies and offering opportunities to new businesses.

Office Space

The average price of office space in Manchester is £35 per square foot; in Leeds, it is £30 per square foot, and the average cost in London is £68.50 per square foot. So London rates remain more than double.

Education

There are more than 25 universities in the north, and some are the best in Europe. However, only 50 per cent of the students graduating from these universities stay back in these cities. Nevertheless, there are expectations that the northern talent will continue to grow, and the government has been planning to encourage investment for talent retention in the cities.

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