The shine may be wearing off Shoreditch, as entrepreneurs pick other places in the UK to base their start-ups.
Fewer new start-ups are being founded in Shoreditch’s start-up scene, Silicon Roundabout, with 2015 stats showing that the number of new companies fell by a third (15,620 to 10,280) on the previous year, citing high rents as one reason for the drop.
“Rising rents in the Silicon Roundabout area are causing many start-ups to choose other neighbouring areas of central London, such as City Road, as their first base,” says Colin Jones, a partner at UHY Hacker Young, who conducted the research.
“By attracting larger firms into the area, rents increase, available space decreases, and smaller start-ups that were initially attracted to the area are forced out into neighbouring areas. That is exactly why we have seen the tech start-ups heading away from Old Street to the City Road area.”