Yorkshire is a shining example and proof, if we need it, that new industries can put down roots outside the capital city. The area, especially Leeds, has consistently been a fundamental pillar of the UK’s economic fortitude. Its business-orientated ethos and pioneering zeal have roots stretching back to the Industrial Revolution, a period when Yorkshire became a hub for inventions and improvements to manufacturing processes. Blessed with abundant natural resources, strategic location and solid infrastructure, the region nurtured new industries from inception right through to becoming stalwarts of the country’s economy.
Transitioning away from its manufacturing roots but maintaining its culture of entrepreneurship and innovation, Yorkshire is now at the centre of the digital economy. This is underpinned by the advanced engineering and digital technologies research and development capabilities at some of the country’s best academic institutions, such as my own alma mater, the University of York, as well as the likes of the University of Leeds and the University of Sheffield, and a range of other excellent higher education establishments. The region draws a skilled workforce passionate about addressing societal issues through technological innovation.
It is not without cause then that West Yorkshire has become the UK’s second centre for both technology and banking, worth around £8.3 billion together and employing over 94,000 people. In turn, fintechs, such as Iwoca, PEXA and Recognise Bank, have been attracted to the region which is fast becoming a driving force for innovation, with the potential for acting as a blueprint for how this might be rolled out on a national scale. It was no surprise that the Bank of England chose to create its first presence outside of London in Leeds.
Initiatives such as last month’s Leeds Digital Festival, Legaltech Leeds, Fintech North and UKREiiF are perfect proof points of this. Their aim is to forge connections among experts throughout the region, from academic institutions to governmental bodies and enterprises of all sizes, in a manner that truly encourages collaboration. When these organisations work in isolation, only piecemeal change can be made, however well-intentioned. However, through collaboration, the possibilities of strengthening national markets and developing business opportunities are endless.
The UK’s property market is a case in point for the need for industry cooperation. The market has suffered from inefficiency as a result of the tech infrastructure that underpins it. This not only results in an escalating workload for conveyancers and lenders and heightens the pressure on them that is already sky-high, but it also affects borrowers with regards to the rates they are able to secure and the fraud they are exposed to. By harnessing the strengths of Yorkshire, including the presence of financial, legal and property companies, as well as technology that intersects all three, plus local corporate offices of key lenders including Lloyds Banking Group, Santander, Leeds Building Society, Yorkshire Building Society and Skipton Building Society, a seamless ecosystem can be established, enhancing efficiency and yielding benefits for all involved.
Joe Pepper, Chief Executive Officer at PEXA.
The time for this is now as the new Labour government approaches its first Budget. It must now bring its ambitious housing policies to fruition, but it simply will not see the benefit of stimulating the front end without also committing to driving private investment in the back-end infrastructure. The property transaction process is at capacity currently, with little or no scalability as evidenced by the impact of the uptick in demand experienced during the Stamp Duty Relief period in 2021. If we can prove the value of collaboration in doing just that using the strength Yorkshire has to offer, it could be an indisputable proof point of a solution to a national problem, much like the genesis of the Industrial Revolution.
As Yorkshire’s tech hub, Leeds is a definitive sign that the North is not merely on the rise but has already established itself as a formidable presence. By leveraging its ability to fundamentally change the housing market, we can demonstrate the region’s position nationally as a place for technological innovation in even more parts of the UK’s economy.
PEXA's new offices in Leeds.
Originally published in the Yorkshire Times.