Jobs growth in zones two and three set to outstrip zone one
The fastest rate of economic growth is happening outside of central London, new analysis by Bilfinger GVA reveals.
Major regeneration projects and greater access to affordable office space in Haringey, Lewisham, Hammersmith and Fulham, Wandsworth and Brent 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 One over the next 20 years.
By 2036, Haringey is forecast to see an incredible 23% increase in jobs, compared to 13% in Zone One and 16% on average in Zones Two and Three.
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Major improvements to connectivity are also supporting this change. Haringey alone is set to benefit with at least four Crossrail 2 stations which will have a transformative effect, 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 seven per cent 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%.
The Haringey-led event will explore how companies of all sizes, from the science and tech industries to breweries such as Beavertown, are moving outwards towards boroughs like Haringey.
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.
Haringey and Wandsworth Council are each seeking development partners to deliver ambitious regeneration plans.
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. These 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:
“This new report shows Haringey will lead London when it comes to jobs growth over the next 20 years. With jobs growth in zones two and three rising faster than zone one, boroughs like Haringey really are the future of London. We are working around the clock to ensure that the benefits of this economic growth flow through to all of our residents, with better access to jobs, skills training and new homes.“
Brent Council’s Leader, Cllr Muhammed Butt said:
“Brent is an ambitious borough and an emerging powerhouse of London that is perfectly placed to take pressure off an overheated Zone 1. The investment we are seeing in Wembley, home of the iconic Wembley Stadium, truly represents our vision coming to life.
“Here we are creating a well-connected environment for businesses to thrive as well as thousands of new homes and an unparalleled leisure offer. Only 12 minutes from Baker Street, it is on the frontline of the new growth opportunities in London.
“To further unlock the huge opportunity of this key growth area and help rebalance London’s economy, we will be calling for a Crossrail spur to connect to Wembley. This makes perfect sense to us as we see growth spreading outwards from central London.”
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.”
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