As London sees a shortage in city office space, businesses are looking into areas outside the City of London, creating emerging financial hubs.
London’s financial map is changing as financial business appear in East, South and North West London, despite fears over the capital’s financial reputation after the vote to leave the EU.
Canary Wharf wins the top spot for financial stronghold with 1,718 businesses within the sector, according to new analysis from Stirling Ackroyd in the latest London Hubs Tracker.
Also East London, City Road, towards Clerkenwell (EC1V) has the fourth largest number of financial businesses, with 1,309 registered in the postal district. The financial sector now makes up 6% of all businesses in EC1V, previously an area synonymous with tech given its location on the edge of the ‘Silicon Roundabout’.
City Road (EC1V) has more financial businesses per km2 than all City of London districts, with a business density of 1,704 financial services companies per km2, providing a pool of potential clients for fintech start-ups.
It’s not just EC1V making the top 10 for financial business density, EC2A, home to Old Street and Great Eastern Street, is also climbing the table towards the top 10, even overtaking Regent Street.
Andrew Bridges, managing director of Stirling Ackroyd, said: “City Road represents the best of east London, an eclectic mix of creativity, food, development, and now finance.
“Old Street isn’t known for its banking credentials but all that is changing. It’s incredible to think that over the last 30 years these districts have evolved and become the dynamic hubs they are now”.
W1 postal districts, including W1U, W1G, W1K, W1J and W1B hold 6 of the top 10 areas for financial business density, showing West London retains a leading position as the most concentrated area of financial businesses.
SE1 has also taken the number 2 spot in the top 10 emerging financial hubs. The postal district has 1,640 financial businesses, demonstrating the growing appeal of heading south of the river and the success of regeneration around London Bridge and beyond.
Alongside this, 3 postal districts within North West London have built an impressive number of registered financial businesses.
Camden Town and Regent’s Park (NW1), Golders Green and Hampstead Garden Suburb (NW11) and Harlesden and Kensal Green (NW10) have a respective 1,397, 1,139 and 1,002 financial businesses registered. Companies within the financial sector now make up 13.5% of all businesses within NW11.
Mr. Bridges commented: “London’s financial heart has always seemed the City of London. But the scarcity of City office space and the growing attractiveness of new locations over the wall is causing an increasing number of businesses to bypass the City or relocate.
“Brexit may have fuelled fears that the capital’s financial reputation is dimming but, in reality, it’s growing. Spiralling rents have pushed financial businesses towards cheaper locations that still benefit from the transport links, ready customers and global positioning London offers, as well as an enticing range of cafés, bars and restaurants”.