Study Finds Companies Can Save Over £2M pa Operating From Hastings Instead of London
Posted on May 15, 2009
A study into the comparative costs of running a business in London vs Hastings, East Sussex, has found companies could save over £2M a year by being based in the south coast town.
The analysis, for development company Coastal Land LLP, compares the operating costs for a hypothetical medium-size company. It finds that the company could save over £2.4M a year by being based in Hastings instead of the West End – almost halving its running costs. The firm could save £1.97M pa compared with the City, and £1.77M compared with Hammersmith, west London.
The study is based on typical operating costs – rents, employment costs, rates and service charge, based on industry data – for a 100-employee company occupying 12,000 sq ft of high standard office space.
The research also analysed the difference in the cost of housing for a company’s employees between the south coast town and the Capital. The average residential property price in the East Sussex area around Hastings is £173,5332, compared with £426,949 in Hammersmith & Fulham as a mid-priced central London borough and £299,613 across Greater London as a whole (source: Land Registry, March 2009). This means a purchase saving in Hastings of £253,417 compared with Hammersmith & Fulham; and a saving of £15,384 a year on a typical mortgage (based on an 85% 20-year repayment mortgage on Nationwide’s current 2-year tracker at 4.5% APR).
Richard Harding, Director at property specialists DTZ, comments: “It’s a fascinating analysis that confirms what we suspected – but with even higher levels of savings. It highlights the Hastings area as a great value quality business location. With cost savings at the top of most board-room agendas right now, relocation could be a great way for businesses to survive – and even flourish – in the recession.
“As well as an enticing coastal lifestyle, Hastings has first class new town centre offices, with more due to complete in the next couple of months. All this at a time when so little quality commercial development is under way anywhere else.”
Hastings developments: Priory Quarter is under development as a new business district in Hastings town centre. The first scheme within the district, Lacuna Place, was completed in September 2008 and provides 36,000 sq ftof grade A offices and retail space. It is now occupied by Tesco and Bibby Financial Services.
One Priory Square is near completion, providing an additional 44,883 sq ft of high standard offices. It will front Priory Square, which is also under construction.
These business developments stand opposite University Centre Hastings, which plans to extend its premises significantly to increase student numbers from today’s 700 to 2,000 by 2012. The £100M Sussex Coast College for further education is under construction 100 metres away, to be completed later this year.
A new public library, multi-screen cinema, parking and further offices and retail units are also planned for Priory Quarter.
Letting details can be obtained from joint agents Cluttons (tel: 01273 738383), DTZ (020 7408 1161) or Dyer Commercial (01424 423 626).