When you hear the word business, there are many cities that spring to mind. For most people, London is chief among them. Alongside the likes of New York City and Singapore, London holds its own in terms of footfall, talent, networking and wealth. But with the increase in remote working, are these traditional business cities still justifying their cost? In this article, we’re going to home in on Central London and ask: is a Central London headquarters still worth it in this day and age as a business base?
The Pros of Central London
Some would refer to London as the business capital of the world, and for good reason. Many of the world’s leading brands have a London presence, proving it to be an ideal location for building relationships and exploring networking opportunities. Specifically, London has traditionally become a hub for industries such as finance, tech and marketing. For larger and smaller businesses in these sectors, being based in the heart of London can place you close to the best talent and offer your brand that extra touch of prestige (but this certainly doesn’t come cheap).
The Cost of Central London
Obviously, like all major business cities, these benefits come at a cost, with the most obvious being the cost to rent an office in London. You’ll also need to consider salary expectations in Central London; the London weighting is real, meaning your staff’s wages will be higher than if your business were based on the outskirts of the city, where the cost of living is significantly lower.
What’s Changed?
The business world has become increasingly remote; hybrid roles and virtual meetings have become standard operating procedure. This has reduced the need for a physical presence, not just in major cities, but full stop. For example, businesses like Spotify offer their workers the opportunity to work from anywhere.
There’s also been a momentous shift in employees' expectations. It’s becoming less common for workers to dream of the skyscrapers and bright lights of major cities, and more common for them to dream of a perfect work-life balance.
Alternatives to Central London
For businesses exploring alternatives to the centre of London, there are a few options. The first is to shun in-office work entirely and go fully remote, allowing employees to work from the comfort of their homes or wherever they choose.
This is the quickest and most drastic way to reduce costs, but potential downsides include a decline in company culture and a loss of physical visibility. For businesses that offer their product or service from a physical location, such as a real estate agency, this will be a bigger barrier than for a digital business, like an e-commerce fashion store.
The next option is to consider an alternative location to Central London, and the outskirts of London may offer the best of both worlds. Towns like Romford, Richmond and Croydon offer excellent transport links to Central London while also offering cheaper overheads.
These areas can still be extremely attractive to potential employees too; Romford especially is building a reputation as an up-and-coming area of London, thanks to the abundance of shops, bars and restaurants in Romford.
Central London shouldn’t be discounted as a business base, but it certainly isn’t the automatic no-brainer that it once was. Ultimately, it comes down to the type of business in question. If your business relies on a physical presence, the footfall of Central London cannot be beaten anywhere else in the UK, so, although there’s risk, the added cost of operating in London could balance out. For office-based businesses that are offering a fully digital service, there’s nothing wrong with considering alternative, more affordable options outside of London.
Written by Damien Woods