When it comes to research and due diligence regarding property investment, the movement of large corporations and young professionals is an important factor to consider.
Throughout the past few decades it is very apparent that this has contributed to the huge growth London has experienced, however, other large urban cities such as Birmingham and Manchester are now enticing professionals out of London. 7,620 people left London for Birmingham and 10,200 people left London for greater Manchester according to the Office for National Statistics and Reach PLC respectively.
Both cities have experienced a large amount of investment and some companies have been moving their headquarters from London to Birmingham and Manchester due to cheaper rents. Amazon are setting up their first building in Manchester later this year and the £3billion regeneration scheme of Media City has attracted companies such as ITV and BBC. PwC has announced it will take up all the commercial space at One Chamberlain Square in Birmingham and other global corporations such as BBC Three, Deutsche Bank, EY, and KPMG have moved part of their business to the city.
As well as the increasing number of opportunities for younger professionals within these cities, another reason people are moving out of London is due to the cost of living. According to Rightmove, the average asking house price in Birmingham is £202,721 and in Manchester it is £203,203 whereas in London it is £618,065. Similarly, with rent, Birmingham and Manchester are considerably cheaper that London.
It is clear to see that the number of professional opportunities in these cities, combined with the far better affordability, has led to a changing demographic within the city centers. Birmingham has one of the youngest populations in Europe, with 40% of the city under the age of 25. Manchester has seen the city center population balloon by 150% between 2002-2015 with graduate retention rates above 50% now.