Investors leaving London to boost investment throughout the UK
The City of London is today unrecognisable from the form it took just two years ago, as the impact of the pandemic has left it quiet and lacking the commuter traffic that has long characterised the Square Mile. In fact, footfall in London stands at just 35% of pre-pandemic levels, with figures from our recently commissioned research showing that, on top of a lack of commuters and foreign tourists, nearly 3 million people moved out of cities during the pandemic.
This exodus from the Capital has, it seems, also provided a shift of capital with the demand for houses costing in excess of £1million rising outside the Greater London area, accounting for over half of purchases for the first time since 1995. This shift in where those with significant investible assets live will provide a boost for the regions outside of London, with our research showing that 42% of investors are planning to support a local business or entrepreneur who benefits their community.
With the rise of community focused investment and the significant increase in the number of businesses started during the pandemic – over 800,000 in 2020 alone – local economies up and down the country are in line for a significant boost from private investors.
The pandemic has had an impact on the UK in ways that we could never have predicted, with wealthy individuals previously tied to City of London desks now free to move and live away from urban centres. This has created a new class of investor, one more concerned with the impact their capital is having and the difference it makes to their local area. It is hard to have an impact on a city like London alone, but by moving to the regions, new opportunities to effect change have arisen.
SMEs and entrepreneurs will be key to the UK economic growth in the next year or so given that they make up 99.9% of private sector businesses and employ nearly 60% of the workforce. Similarly, the investment community that backs these firms will be equally as important therefore it is extremely encouraging to see this optimism and activity, especially in the UK’s regions and outside of traditional economic centres.
To find out more about IW Capital, or for more information on investment and non-executive opportunities, please speak to a member of the IW Capital team today on 020 7015 2250, or email info@iwcapital.co.uk