Why lending is needed to help our Yorkshire high streets - James Gwynne

It’s a bold move by Shawbrook, but it suggests that despite the mass exodus from retail and office space over the last few years, there is a solid argument for encouraging commercial investment.

Shawbrook have realised the potential, but one lender’s efforts, however, aren’t enough to change the narrative. More need to follow suit, especially if we want to see Leeds booming with workers and shoppers again.

I’m well aware there’s a continued narrative that brick and mortar shops are no longer relevant to shoppers, and that e-commerce should be the sensible route for businesses to take. But, in my opinion, it couldn’t be further from the truth.

If it was true, why would the fastest-growing fashion brand in the UK, Gymshark, announce they are opening a flagship store on the high street? The sportswear brand is already colossal and has established itself as a household brand purely online – and yet their next big move is brick and mortar investment.

What does this suggest? It suggests that whilst digital has a place, shoppers are eager to return and get that shopping experience. The big brands are realising it. The big lenders are realising it. Now it’s time for local lenders to incentivise and help investors realise it too.

We need local lenders to get behind this and encourage commercial investment in our region, or we once again run the risk of them heading south. Footfall levels in Leeds city centre have returned to pre-pandemic levels, suggesting that people feel confident, and the demand is there for in-store shopping. What’s more, the weekday offline spend index in Leeds pre-pandemic was 100, but it has now risen to 109.

More people are spending money than before the pandemic, despite the hardship many people have faced, and this speaks volumes. If we don’t give our locals places to work, shop and eat, what will happen? They’ll go elsewhere.

With the industry facing so much hardship throughout the pandemic, is that really what we want? What’s in it for the lenders then? The truth is, there’s an undercurrent sweeping across the country, and as the pandemic passes, shoppers are not only returning, but they are expecting more.

By acting now, lenders can not only lead the way in ensuring our towns and cities do not miss out on the opportunity to rejuvenate their high streets, but they could also witness growth themselves. The more money injected back into our high streets, the more we are invigorating our local economy. To be a lender behind this movement is a great achievement – one which today’s banker will see value in.

If the whole ‘levelling up’ propaganda has taught us anything, it’s that we need to take control of our own investment to help us remain competitive to southern regions, like London and its surrounding towns and cities. That doesn’t mean we don’t need support; it just means we need the right level of backing – and that backing can come in the form of encouragement from the commercial lending teams.

Yes, this is about more than commercial lending, but helping businesses get back on their feet with access to lower rental facilities and units, can help our local economy. We have the people and footfall demand, Leeds has the property, and all we need now is other commercial lenders to follow Shawbrook’s footsteps.