Compare two ways of earning the same amount in London. The first is to work. A job in one of the capital’s thriving industries will on average pay about ￡35,000. The second is to own enough office space for a few desks in the city’s West End. Just 17 sq m currently yields about the same amount.
Despite Britain registering deflation for the first time in half a century, its capital remains an expensive place to do business. The overriding cause is expensive property. Even against other global centres, the cost of renting an office or roof over one’s head is steep.
To superficial eyes this is a badge of success. Cities teetering on the brink of failure, such as Detroit, are often studded by boarded-up houses and empty business districts. London can charge so much because it is an excellent place to work. Alongside financial services, the city is a global hub for the creative industries, law and even high-value manufacturing.