Economic growth in zones two and three in London is set to overtake that in central London over the next 20 years as London’s economy rebalances, according to analysis by Bilfinger GVA.
The new research found that major regeneration projects and greater access to affordable office space in Haringey, Lewisham, Hammersmith & Fulham and Wandsworth was driving up demand.
It showed 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.
The company said that major improvements to connectivity are also supporting this change, with Haringey alone set to benefit with at least four Crossrail 2 stations which will have a “transformative effect”. These helpto “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%
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.”