Economic Overview of the Harrogate District Quarter 1, 2016/17 (1 April – 30 June 2016)

1 Q1 2016/17

6.5%

6.4%

6.6%

6.8%

7.0%

7.2%

7.4%

7.6%

Q1 2015 Q2 Q3 Q4 Q1 2016

3,223

0

2,000

4,000

6,000

8,000

Q1 2015 Q2 Q3 Q4 Q1 2016

220

230

240

250

260

270

Q1 2015 Q2 Q3 Q4 Q1 2016

Tho

usa

nd

s

Annual Comparison

Retail Vacancy Rate The district’s retail vacancy rate increased year-on-year by 0.9 of a percentage point. At the end of June 2016 there were 1,249 retail units across the district (17 units less than June 2015) of which 93 were vacant (82 in June 2015).

Property Markets

7.4%

Planning Applications Received The number of planning applications received during Q1 2016/17 was 4% lower than in Q1 2015/16. However, 580 applications is the second highest quarterly figure since recording began for this purpose in 2011.

Permitted Development Rights: Office to Residential 5,886 sqm of office floorspace was planned for conversion to residential use in Q1 2016/17 – an 83% annual increase. In the first six months of 2016, the council was notified that 9,250sqm of office floorspace could be lost through permitted development rights.

5,886

New Dwellings The number of new homes completed during Q1 2016/17 was 60% lower than in Q1 2015/16. 31 of the 37 completed dwellings were in Harrogate Town.

93

37

20

40

60

80

100

Q1 2015 Q2 Q3 Q4 Q1 2016

Housing Transactions The number of house sales reduced by 39% year-on-year, following four consecutive quarters of significant activity in the district’s housing market. The contributing factors to this decline will be explored and monitored throughout the year.

705

432 350

550

750

950

Q1 2015 Q2 Q3 Q4 Q1 2016

£263,000

£240,000

Median House Price The median house price in the district increased by 9.6% annually. £263,000 was 50% above the median house price for the rest of North Yorkshire in Q1 (£175k). The mean average house price in the district was £322k in Q1 2016/17.

607

580

490

540

590

Q1 2015 Q2 Q3 Q4 Q1 2016

Economic Overview of the Harrogate District

2 Q1 2016/17

Q1 2016/17 Q1 2015/16

1 Human health activities ► Human health activities

2 Food and beverage services ▲ Education

3 Education ▼ Food and beverage services

4 Scientific research and development ▲ Retail

5 Retail ▼ Social work activities without accommodation

6 Social work activities without accommodation ▼ Accommodation

7 Other professional, scientific and technical activities

▲ Scientific research and development

8 Accommodation ▼ Advertising and market research

9 Insurance & Pensions ▲ Manufacture of food products

10 -- Wholesale and retail trade (inc vehicle repair) -- Residential care activities

▲►

Residential care activities

Q1 2016/17 Q1 2015/16

1 Customer Service ▲ Microsoft Excel

2 Microsoft Excel ▼ Customer Service

3 Building Relationships ▲ SQL (computer programming)

4 Sales ► Sales

5 Business Management ▲ Building Relationships

6 Microsoft Office ▲ Business Management

7 Product Sales ▲ .NET Programming (computer programming)

8 Customer Contact ▲ Microsoft C# (computer programming)

9 Accountancy ▲ JavaScript (computer programming)

10 Business Development ▲ Teaching

£27

£28

£29

£30

£31

Q1 2015 Q2 Q3 Q4 Q1 2016

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Annual Comparison Employment & Hardship

Mean Salary of Advertised Jobs The mean average salary of jobs advertised in the district during Q1 reduced annually by 8% and was 17% below the Q1 Leeds City Region average of £32,841.

£27,239

47%

0.4%

0.2%

0.3%

0.4%

0.5%

Q1 2015 Q2 Q3 Q4 Q1 2016

0.3% Claimants

Job Seekers Allowance (JSA) Claimants (% working-age) The district’s JSA claimant rate reduced annually and remains at its lowest recorded level for the third consecutive quarter, with 282 claimants across Harrogate District. 0.3% is the lowest rate of the North Yorkshire districts and is below the county average (0.6%) regional average (1.8%) and national average (1.4%).

£29,595

Advertised Jobs – Top 10 Sectors

Advertised Jobs – Top 10 Skills in Demand

Annual Comparison

Economic Overview of the Harrogate District

3 Q1 2016/17

Q1 2016/17 Q1 2015/16

1 Personal & community service activities ▲ Professional, scientific & technical activities

2 Professional, scientific & technical activities ▼ Administrative & support services

3 Administrative & support services ▼ Retail trade and repair

4 Retail trade and repair ▼ Accommodation & food service

5 Other construction activities ▲ Personal & community service activities

Acquirer Target Deal Type Deal Value

Bravo Investment Holdings Ltd (Maidstone)

Broker Network Holdings Ltd (Harrogate): a holding company whose subsidiaries are engaged in the business

of insurance brokerage in the United Kingdom.

Institutional buy-out: 100%

€55 million

Unknown Redcentric PLC (Harrogate): network-based managed services business delivering ICT solutions and services.

Minority stake: 4%

€13.6 million

VP PLC (Harrogate): equipment rental specialist which provides

equipment rental and associated services to a range

of market sectors.

TR PTY LTD (Australia): specialised technology solutions to corporate, industrial and government clients across

Australasia, including equipment rental, equipment sales, engineering and design, service and maintenance, and

calibration and repair.

Acquisition: 100%

€16.6 million

1600

1650

1700

1750

1800

1850

1900

Q1 2015 Q2 Q3 Q4 Q1 2016

300

251

240

265

290

315

Q1 2015 Q2 Q3 Q4 Q1 2016

Annual Comparison

Households Accepted as Homeless and in Priority Need The number of households accepted by the council as homeless and in priority need increased year-on-year by 21%. 40 households is the highest quarterly figure since recording began for this purpose. In contrast, the 2013/14 quarterly average was 12 households.

Housing Benefit Claimants: Working-Age Earners The number of employed people claiming Housing Benefit for privately rented properties has reduced annually by 9%. However, 1,681 claimants remains significantly higher than the pre-recession (2007/08) average of 615.

New Business Bank Accounts Q1 saw a record-low 251 new businesses across Harrogate District – a 16% annual decrease. Over the same period the Leeds City Region experienced a 3% increase in new enterprise. However, the quarterly business start-up rate of 25.2 per 10,000 working-age population remains slightly above the Leeds City Region (LCR) rate of 22.9.

New Investment & Enterprise

33

40

25

30

35

40

45

Q1 2015 Q2 Q3 Q4 Q1 2016

Households

1,681

1,815

New Businesses – Top 5 Sectors

Significant Mergers & Acquisitions

Economic Overview of the Harrogate District

4 Q1 2016/17

48,408

20,000

40,000

60,000

80,000

Q1 2015 Q2 Q3 Q4 Q1 2016

Visitor Economy

55,409

22,007

10,000

15,000

20,000

25,000

30,000

35,000

Q1 2015 Q2 Q3 Q4 Q1 2016

20,320

Tourist Information Centre (TIC) Visitors TIC visitor numbers in Q1 increased by 14% year-on-year. Harrogate TIC experienced the largest increase in visitors – with a total of 7,676 more visitors than in Q1 2015/16 (+21%).

www.visitharrogate.co.uk Sessions

The number of sessions on Visit Harrogate’s website decreased slightly year-on-year. 93.7% of ‘traffic’ originated from the UK (89.8% in Q1 2015/16). The US accounted for the largest international audience (1.4%) followed by Australia (0.54% of sessions) Germany, Netherlands (both 0.32%) Spain, Ireland (0.27%) and Canada (0.25%).

Visitors at Council Museums The quarterly number of visits to the council’s museums decreased year-on-year by 8%. Two exhibition changeovers at the Mercer Art Gallery during Q1 have contributed to a reduction in the number of visits.

Annual Comparison

120

130

140

150

160

170

180

Q1 2015 Q2 Q3 Q4 Q1 2016

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164,624 168,558

Sources of Information

New Dwellings: Harrogate Borough Council

Housing Transactions: Land Registry

Median House Price: Land Registry

Planning Applications Received: Harrogate Borough Council

Permitted Development Rights: Office to Residential: Harrogate Borough Council

Retail Vacancy Rate: Harrogate Borough Council

Mean Salary of Advertised Jobs: Labour Insight

Advertised Jobs – Top 10 Industries: Labour Insight

Advertised Jobs – Top 10 Skills in Demand: Labour Insight

Job Seekers Allowance (JSA) Claimants (% working-age): Department for Work and Pensions

Households Accepted as Homeless and in Priority Need: Harrogate Borough Council

Housing Benefit Claimants: Working-Age Earners: Harrogate Borough Council

New Business Bank Accounts: Banksearch Consultancy

New Businesses – Top 5 Industries: Banksearch Consultancy

Significant Mergers & Acquisitions: Bureau van Dijk - Fame

Tourist Information Centre (TIC) Visitors: Harrogate Borough Council

www.visitharrogate.co.uk Sessions: Harrogate Borough Council

Visitors at Council Museums: Harrogate Borough Council

For more information and to sign up to our business e-newsletter: business@harrogate.gov.uk