Milton Keynes 'most expensive business location'
May 30 2008
The town of Milton Keynes is the most expensive place outside London to start up a new business, research has found.
Research by Alliance & Leicester discovered that Cambridge was the second most expensive location, followed by Oxford.
Andy Homer, a spokesman for the firm, told BBC Radio 5 Live's Wake Up to Money programme that businesses cited rental costs for commercial premises as one of their major concerns.
Milton Keynes was found to be the most expensive place to rent business property, with prices at an average of £2,500 per square metre.
There are stresses for space in the area because it is a 'growing city' and weekly wages are among the highest in the country, Homer explained.
He added: 'I think business owners have to be aware of all the costs involved with setting up a business and they need to ensure that they can keep their costs to a minimum by regularly reviewing their outgoings, their supplies, the cost of banking.'
According to the government's start-up advisory service Business Link, SMEs should shop-around for the best deal before choosing their premises.
It recommends visiting the local council for advice, looking for advertising signs outside buildings, searching the internet and checking in local newspapers.
Comment by Paul Griffiths
Wednesday 4th June 2008I have yet to see the complete survey. However, it should be noted that the quoted rental figure is for city centre retail space. There are many reatil opportunities outside the city centre where rent levels are much less than this. And, of course, not all small businesses are in retail - and again office and industrial floorspace is significantly less. We work with many people who start their business from home - so commercial rent is not a factor. On the plus side MK has a thriving economy and with a population set to double between now and 2025 there are a considerable number of business opportunities to be exploited. To find out more contact me, Paul Griffiths, at the Business Link Enterprise Gateway on 07776 235072.
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