Benefits of London office boom felt across UK, study finds | 4 June 2013
A study has revealed that office construction work in London offers nationwide economic benefits.
Research carried out by business group London First discovered that work undertaken in the capital supports thousands of jobs nationwide. In fact, almost twice as many jobs are created outside London, confirming that construction in the city is economically valuable to many other parts of the UK.
The London ‘office building boom’ has generated a £1.1 billion ‘multiplier effect’ to the regions, nearly twice the £0.6 billion that is generated in London itself, says constructionenquirer.com. What’s more, the office construction projects support 12,200 jobs in London and an incredible 22,400 beyond it.
The study was based on research that had been carried out by PwC, which examined the effect of investment by developers including Land Securities, British Land, Cadogan Estates and Canary Wharf Group. It found that more than four-fifths of the investment made in London is spent in the UK.
These developments include Derwent’s plans for the White Collar Factory office, near Old Street and the tech communities inhabitance of Shoreditch, efinancialnews.com writes. What’s more, the construction boom has delivered a return to London property company investors of some 20 per cent so far this year.
Baroness Jo Valentine, chief executive of London First, enthused about the findings via itv.com: “The value of investment in London is huge in terms of generating jobs and economic benefits in London itself, but the knock-on contribution to regional economies is more impressive and shows the boost that London businesses provide to the rest of the UK.”
The views expressed in this post are those of the author and are not necessarily those of Qube Global Software. All facts are verified where possible directly by the author
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