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Is it goodbye Silicon Roundabout? New business numbers drop 70%

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Shane Green
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Soaring rental costs are playing a significant role in putting off new businesses moving to the area.

Silicon Roundabout, frequently dubbed the UK s answer to Silicon Valley, is suffering significantly from a fall of new businesses as rent prices prove a deterrent.

Just six years after Silicon Roundabout was launched and new business openings in the area have fallen by 70% over the last year.

In 2013 and 2014 the area was the UK s fastest growing area for new business, but in 2016 the number of new openings fell to 3,070 from 10,280 in 2015, according to a Freedom of Information Act request from accountancy firm UHY Hacker Young.

Colin Jones, partner at the accountancy firm, told the Daily Mail: Silicon Roundabout has fallen off the top spot in terms of new business creation, it is a victim of its own success.

The Silicon Roundabout area gained popularity with internet companies originally due to its historically low rents.

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Shane Green
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