

The Silicone Affect - 'Technology Clusters' That Boost Property Prices

Some 1.5m people are now working in digital technology jobs across the UK with digital tech businesses at the heart of the UK economy and playing an important role in driving growth.

Not only is job creation in the tech sector much faster than for the rest of the economy, (2.8 times faster between 2011 and 2014) it also provides much higher average salaries - in the range of £50,000, which is 36% higher than the national average, and they continue to rise at a faster rate also. These higher salaries are filtering through to higher property prices in areas where there are a larger proportion of tech workers.

In partnership with Nesta for Tech Nation 2016, Tech City UK has tracked these tech clusters to gauge the UK's Digital Tech Economy. To get a comprehensive insight into digital employment, it analysed data from Government, job advertisements and official ONS data.

According to the report, there are 27 notable digital tech clusters across the country and over 1m online adverts for digital jobs were placed in the UK in the first nine months of 2015.

Research by crowdfunding platform Property Partner looked at the number of tech jobs available per 1,000 residents in each of the 27 tech clusters. The 10 cities with the highest ratio outside of London have seen property prices rise by 11.9% more than the UK average over the past five years.

However, seven out of the top 10 have seen property prices rise faster than the UK average, (3 did not), rising 18.9% faster on average. 

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