The UK’s tech sector has long been one of its most vibrant and impressive industries, and the latest annual report from Tech Nation confirms that it is also one of the most impressive in the world.
More than £10bn was invested into UK technology companies over the course of 2019 – a new record. What’s more, the UK is the best in Europe at scaling up existing tech companies by turning start ups into challengers, and challengers into industry leaders.
The strength of our tech sector is so overwhelming that a quarter of the UK’s top 20 cities for tech investment can be found in the UK – and of those cities, Manchester is performing the best of all.
The numbers are quite astounding. In 2018, Manchester’s tech sector received investment of just £48m, but this grew to a huge £181m over 2019. That is an increase of 277% in just one year and means that Manchester is Europe’s fastest-growing tech cluster.
The ‘Internet of Things’ (IoT) – where computing devices are embedded in everyday objects – is a great example of Manchester’s strength. Since being selected as the UK’s ‘IoT Demonstrator City’ and receiving a government award to invest in smart city technology in 2016, the city has become a national leader in this industry, and a number of ‘unicorn’ companies (such as Boohoo and AO.com) have sprung up in the region.
The Tech Nation report goes on to state that the UK tech sector is growing at six times the speed of the UK economy as a whole. That trend is concentrated in Manchester, where more than 100,000 people – approximately one fifth of the city’s entire population – are employed in the sector.
The government’s Digital Secretary, Oliver Dowden, said: "It's great to see the north west's tech sector continuing its tremendous growth. Manchester is the fastest growing tech city in Europe.
"We're investing in digital skills, cyber security and research and development, as well as regional infrastructure such as gigabit speed broadband and 5G to keep up this momentum."
With government backing – and a local tech sector that continues to innovate and grow – the future is bright for digital and technology companies in Manchester.
As more Manchester tech companies are created, and as the existing ones continue to grow, more and more young professionals will be attracted to the city. Manchester Council projects that at least 100,000 people will move to the city centre in the coming years, and this will place an enormous amount of pressure on the local housing market.
House price growth in Manchester is already more than double that in London, and the ongoing business and population booms will only accelerate that further. For more information about Manchester city centre housing, get in touch with a member of our team today >>