In recent times, the London property market appears to have decoupled from the rest of the British economy. More specifically, it has managed to maintain steady growth and consistently high property prices while other regions have floundered, and this trend gather further credence in 2014 as the value of London real estate peaked.
There are fears that London property prices may have gone beyond the point of no-return, however, and subsequently pushed potential buyers out of the market. With a stagnating national average wage and the rising cost of living also hitting consumers hard, experts are fearful that the market in the capital may crash along with the demand for real estate.
The Pros and Cons of Relocating your Business to London
This is bad news for entrepreneurs, many of whom may like the opportunity to relocate their business to London. There are still pros and cons of moving to the capital in the current marketplace, however, so consider the following before making a decision: –
While the average level of disposable income in the capital may be at a six year low, London is still a haven for profitable and lucrative business models. The cost of living is still higher here than any other region in the UK, meaning that businesses can charge more for their products and services without compromising the finances of consumers. This is a huge boon for businesses of all scopes and sizes, as it enables them to potentially invest more in developing their product range over time.
In addition to this, it is relatively easy to source competitively priced office space in London. The commercial property market continues to benefit from significant levels of demand, and reputable service providers such as LEO have capitalise on this to provide a number of conveniently located office spaces. This means that it easier than ever to source viable buildings that are within a predetermined budget, without compromising on location, style or functionality. Given the need to provide a quality business model and an excellent consumer experience, this can make the difference between delivering good and negligible service.
While there are not necessarily cons to relocating your business to London, there are certainly factors that require careful consideration. While the cost of living enables you to charge a higher price for your product or service, for example, you will also need to factor increased costs for materials and labour into your financial planning. This means that while your turnover will increase considerably in the capital, your profit margin will only improve if you are aware of costings and able to minimise these where possible.
On a similar note, it is also important to note that London is a haven for business owners across multiple sectors. This means that many industries are saturated with a high volume of service providers, and it can be extremely difficult to differentiate your brand or claim a viable share of the overall market. Unless you are confident in your business plan and core commercial products, you may find that your venture becomes lost among a host of similar operators throughout the capital.