This is the biggest problem in the UK.
I'm lucky to be working remotely as a Software Engineer from North Leeds for a London based prop-tech startup. Salary around £70k, 1.5/2 years experience.
I was living in London for about five to six years, but our rental came to an end. With the mania of last year, we were looking at £2000-£3000 per month for a very average, fairly cramped flat within zone 2 (or 40 mins to our offices). Despite my partner being a solicitor (£50k, but could have been closer to £100k now if we stayed), it felt like a really long road to be able to afford a home.
As much as I love London, my friends and the opportunities, we were killing ourselves for vague dream of eventually owning a very average house, or a good leasehold flat in 5-10 years time. It was incredibly demotivating. But maybe our standards are high.
We instead bought a huge five detached bedroom house. 15 minutes on the bus to the city, 5 minutes drive and your in the countryside, another 20 and you're in the Yorkshire Dales. David Llyods 5 minute drive away. Empty state of the art, free to use, public tennis courts 10 minutes walk. Massive park (used to be Europes largest urban park) right outside our door. Lots of local pubs and eateries within walking distance and more variety throughout Yorkshire a short drive away. Our monthly mortgage repayments are £1800 (£950 interest, the rest on capital). Quality of life is a no brainer. We live like royalty up here.
Even for start-ups the cost of office space is felt high in London. My company were looking at some really average 10-15 seater rooms, which were coming in at £10k per month. I'm sure office space in smaller cities is much cheaper, plus you probably get better employee retention as they aren't squeezed so hard by living circumstances (or poached as a result of needing more money).
It's just such a shame that 90%+ (guess) of innovative start ups are in the South East. It becomes self fulfilling as the labour market thickness is much greater there as you can rely on public transport (unlike the North), so more people go there, so more thickness, so easier to hire the team you need.
1) Create reliable public transport in other cities which is competitive to London. Get out of UK centrist mindset.
2) Change cultural perceptions about the rest of the country. Literally a few fictional TV shows or stories about young, techy people living a lifestyle where they all own their own houses, maybe turn an old industrial mill room into a little start-up HQ, go swimming in waterfalls in the Dales at the weekend and still have great nights out in Leeds is all that is needed to break the London fixation. To show people that there is in fact, life beyond London.
3) Create incentives to get some first movers to relocate. Like if a start up physically locates in a particular area (say Leeds city centre), the government will pay half the salaries for the first 20 employees for 3 years. Maybe even throw in some free accommodation in a co-living space to help people settle when they relocate (a bit like a uni experience). Make it financially attractive to founders to scale their businesses in different places.
I'm sure there's flaws in those arguments, but there are definitely things the UK can do to make it less depressing to start a business here! It just takes some will, and the government to have the balls to do something tangible outside of the Whitehall bubble.
I'm lucky to be working remotely as a Software Engineer from North Leeds for a London based prop-tech startup. Salary around £70k, 1.5/2 years experience.
I was living in London for about five to six years, but our rental came to an end. With the mania of last year, we were looking at £2000-£3000 per month for a very average, fairly cramped flat within zone 2 (or 40 mins to our offices). Despite my partner being a solicitor (£50k, but could have been closer to £100k now if we stayed), it felt like a really long road to be able to afford a home.
As much as I love London, my friends and the opportunities, we were killing ourselves for vague dream of eventually owning a very average house, or a good leasehold flat in 5-10 years time. It was incredibly demotivating. But maybe our standards are high.
We instead bought a huge five detached bedroom house. 15 minutes on the bus to the city, 5 minutes drive and your in the countryside, another 20 and you're in the Yorkshire Dales. David Llyods 5 minute drive away. Empty state of the art, free to use, public tennis courts 10 minutes walk. Massive park (used to be Europes largest urban park) right outside our door. Lots of local pubs and eateries within walking distance and more variety throughout Yorkshire a short drive away. Our monthly mortgage repayments are £1800 (£950 interest, the rest on capital). Quality of life is a no brainer. We live like royalty up here.
Even for start-ups the cost of office space is felt high in London. My company were looking at some really average 10-15 seater rooms, which were coming in at £10k per month. I'm sure office space in smaller cities is much cheaper, plus you probably get better employee retention as they aren't squeezed so hard by living circumstances (or poached as a result of needing more money).
It's just such a shame that 90%+ (guess) of innovative start ups are in the South East. It becomes self fulfilling as the labour market thickness is much greater there as you can rely on public transport (unlike the North), so more people go there, so more thickness, so easier to hire the team you need.
1) Create reliable public transport in other cities which is competitive to London. Get out of UK centrist mindset. 2) Change cultural perceptions about the rest of the country. Literally a few fictional TV shows or stories about young, techy people living a lifestyle where they all own their own houses, maybe turn an old industrial mill room into a little start-up HQ, go swimming in waterfalls in the Dales at the weekend and still have great nights out in Leeds is all that is needed to break the London fixation. To show people that there is in fact, life beyond London. 3) Create incentives to get some first movers to relocate. Like if a start up physically locates in a particular area (say Leeds city centre), the government will pay half the salaries for the first 20 employees for 3 years. Maybe even throw in some free accommodation in a co-living space to help people settle when they relocate (a bit like a uni experience). Make it financially attractive to founders to scale their businesses in different places.
I'm sure there's flaws in those arguments, but there are definitely things the UK can do to make it less depressing to start a business here! It just takes some will, and the government to have the balls to do something tangible outside of the Whitehall bubble.