London's ripple effect 29th February 2016

Jobs growth in Zones Two and Three is set to outstrip Zone One as London's economy rebalances, reports Bilfinger GVA.

The fastest rate of economic growth is happening outside of central London. According to Bilfinger GVA, major regeneration projects and greater access to affordable office space in Haringey, Lewisham, Hammersmith & Fulham and Wandsworth is driving up demand with Bilfinger GVA’s findings showing that the jobs growth rate in Zones Two and Three will outstrip that in Zone Two over the next 20 years.

By 2036, Haringey is forecast to see a 23% increase in jobs, compared to 13% in Zone One and 16% on average in Zones Two and Three. Major improvements to connectivity are also supporting this change. Haringey alone will benefit with at least four Crossrail 2 stations which will have a transformative effect, Bilfinger GVA writes, helping to "unlock 16,000 new homes and 9,000 new jobs in the priority regeneration areas of Tottenham and Wood Green". Prime rents in central London have increased by over 7% in the past year, most likely explaining why in outer London the office vacancy rate is at the lowest it’s been for eight years at around 5%

Last December Britain’s fashion manufacturing industry received a major boost when award winning social enterprise Fashion Enter, which produces 400,000 garments a year for the likes of Marks & Spencer, ASOS, Finery and Tesco opened Europe’s first manufacturing academy in Haringey which will train more than 1,000 people per year. The ‘Haringey Development Vehicle’ will establish a 50/50 partnership responsible for delivering £2bn worth of development, creating at least 5,000 new homes, a new town centre and thousands more jobs over the next 15-20 years. The plans will transform areas, such as Wood Green and Tottenham, which hold huge potential but have always underperformed. Wandsworth is also looking for a joint venture partner for the 32-acre Winstanley and York Road estates, SW18, immediately north of Clapham Junction station. The plans could have a development value over £1bn.

Claire Kober, Leader of Haringey Council, said: “For far too long London has been a city that has been economically divided with too many people missing out on jobs, decent housing and an opportunity to get on in life.“This new analysis shows that we now have unparalleled opportunity to spread prosperity more evenly across our communities in a way that London has not achieved before.”

 Gerry Hughes, chief executive of Bilfinger GVA, said: “The data clearly shows a rebalancing of London’s economy as jobs and growth spreads from the centre. London’s leaders should take heart from this change which can only be positive for the capital, bringing opportunities for people and businesses beyond the conventional boundaries.”