In recent years, London has experienced a so-called ‘mass exodus’ of people leaving the city in favour of less crowded and more cost-effective locations. Once renowned as the cosmopolitan city of opportunity, London’s work culture and vibrant atmosphere were highly sought after.
However, both residents and businesses are now looking for new places to call home. London saw a 50 per cent drop in traditional head office job listings last year, the most of any region, according to analytics firm Vacancysoft.
But as the capital appears to lose some of its appeal amid rising living and housing costs, why are these companies choosing to leave, and where are they heading?
Read on as we explore the top reasons businesses are moving out of London.
When it comes to employers and employees, it’s a classic case of ‘chicken and egg’. Are businesses relocating because the talent pool has shifted, or are professionals following companies that have already moved out of London?
Either way, there’s no denying the growing trend of businesses moving to locations just outside London to cities such as Oxford, Birmingham and Manchester, which are becoming increasingly attractive.
With the same job roles now available outside the city, such as finance jobs that were once native to the capital, employees may no longer be willing to choose a London-based position that involves a longer, more expensive, and stressful commute.
Since lockdown, workplace culture has also shifted significantly, and this pattern is continuing. In fact, a 2024 survey found that 51% of respondents work in a hybrid format, compared to 46% in 2023. This has led many to question whether being in London is truly necessary, with the capital’s return to the office statistics being slower than other major cities by global standards.
The rising cost of living is affecting both employees and employers, once again reinforcing the ‘chicken and egg’ dilemma. From costly commuting and parking to lunches and office rent, remaining in the capital is becoming increasingly unfeasible for many businesses and their staff.
With hybrid working widely adopted, it’s harder to justify the high costs of an office that may sit half-empty for much of the week. Meanwhile, locations outside London offer far better value for money.
Businesses can secure modern office spaces with green surroundings, parking, and cleaner air – all for a fraction of what they would pay in the capital. This makes job opportunities outside London more appealing to both employers and prospective employees.
Since the pandemic, workplace health and wellbeing have taken centre stage. According to CIPD, over half (53%) of organisations now have a standalone wellbeing strategy.
However, a survey conducted for The Best You magazine found that a staggering 80% of London workers are unhappy in their jobs, with 29% of women and 25% of men experiencing depression. These worrying figure goes some way to explaining why so many people are seeking alternatives.
With high costs, long and stressful commutes, increased anxiety, and lower job satisfaction, it’s no surprise that London-based employees are less happy. Could relocating to an office outside of London solve these issues? Many businesses seem to think so – and the trend suggests they may be right.
Are you a business looking to take advantage of the government’s new announcement to develop the Oxford-Cambridge Growth Corridor? It revealed that industry experts believe the move will add up to £78 billion to the UK economy, catalysing the growth of UK science and technology.
One of the prime sites in the region is the 48-acre Bicester Arc development, which offers businesses the opportunity to create a pioneering campus or bespoke facilities. A variety of plots can be split or combined to suit single occupiers or larger companies.
It’s a highly accessible site, with easy access to the M40 corridor and excellent travel links to London, Birmingham, and the Midlands.
A dedicated power supply gives the site a competitive advantage in a region teeming with ambitious organisations, particularly those leading advancements in pharma, life sciences, deep tech, and engineering.
Bicester Arc offers a ‘blank canvas’ for businesses to create their ideal space. If you’re ready to join the growing number of businesses who are moving out of London, contact us today.
