COMMENT In recent years the reputation of Leeds as a burgeoning city for health technology has grown significantly. This may initially appear unsurprising, given that the pandemic has undoubtedly fuelled the growth of the health sector throughout the whole of the UK, but Leeds in particular has often been seen leading the charge when it comes to digital health and technology.
Post Covid-19 there has inevitably been a growing level of interest from both the government and corporates in business relating to human health. Over the last few years Yorkshire has become one of the most desirable regions for businesses looking to expand into the healthcare sector and healthcare and medical technologies are expected to become key growth sectors for Leeds.
Supporting growth
The presence of NHS Digital at Wellington Place is a major driver for the city and having such a key entity within the digital health sector is likely to attract start-ups who will co-locate around it.
In addition, Leeds houses four out of five national NHS offices, cementing itself as a leader for office space in the health and medical sector.
Supporting this growth is the availability of talent within Leeds and its surrounding areas. Strong universities and high graduate retention rates – Leeds has the fifth highest retention rate in the UK at 39% – coupled with ready skilled labour all create a sound appeal to businesses. The more the digital scene grows in the UK, the more talent it will attract, and vice versa.
Furthermore, the work-life balance in Leeds makes it a highly desirable location for young people to call home. The average residential price in Leeds is currently at £260,000, compared with £533,000 in Cambridge (another city renowned for health and science), making it an attractive alternative location for younger generations.
As for life sciences, the untapped potential within Leeds is huge. The Golden Triangle of Oxford, Cambridge and London is of course the most prominent region in the UK for the sector, but with 52% of all UK employees in the biopharma and medical technology sectors working outside of the South East, Eastern and London regions, there are significant opportunities for other cities to grow their markets further.
The Northern Arc
The Northern Health Science Alliance has formed to mobilise and connect the North’s health and life sciences cluster, helping to promote the growth of the sector across the northern regions and establish the concept of the ‘Northern Arc’ (comprising Birmingham, Liverpool, Manchester, Leeds and Newcastle).
Additionally, Leeds is already home to the Leeds Institute of Medical and Biological Engineering, Europe’s largest integrated multi-disciplinary medical engineering centre, as well as some of the UK’s leading cancer centres.
However, investment must continue to strengthen the community and build upon Leeds’ growing reputation. The establishment of an “ecosystem” – whereby a network of like-minded organisations work collaboratively to deliver value – will become critical to success.
Events such as the Leeds Digital Festival will help to foster this but ongoing investment and nurturing of talent will be key in ensuring the larger pharma companies choose Leeds to urbanise their locations and tap into specific skills.
Capitalising on investment
We are seeing the emergence of a handful of life science focused property funds who see the attraction of Leeds as an investment destination and we anticipate that this will continue to grow as investors seek enhanced performance from ‘alternatives’.
The UK is already globally recognised in the life science sphere due to the dominance of the Golden Triangle but there needs to be a wider recognition and acceptance of life sciences skills across the UK.
Investors that understand the UK market, and are open to exploring new opportunities, will see that there is significant potential to be had outside of the South, and Leeds must be poised and ready to capitalise on that.
Simon Lister is head of office at Savills Leeds
