Hampshire Trust Bank will open a new office in Leeds in the first half of 2018 in response to the surge in growth from (SMEs) based in the Northern Powerhouse.
The bank has already made three key appointments in the North to support its property finance team.
The team is led by Neil Leitch, regional director (North), and supported by the wider bank.
Other appointments include David Whitehouse, based in Doncaster, and Paul Fellowes, based in Wilmslow, who have both been appointed as Regional Lending Managers (North) and are responsible for covering Yorkshire and Humberside and the North West respectively.
Hampshire Trust Bank is witnessing strong growth from SME housebuilders in the North of England as more people and businesses choose to be based outside of the Capital.
The bank’s business strategy reflects its annual SME Growth Watch research, conducted in partnership with the Centre for Economics and Business Research (CEBR).
The new study identifies SMEs in the top 10 UK cities are forecast to contribute £241bn to the economy by 2025.
Firms in Leeds and Greater Manchester are set to boost their contribution the most, with 26% growth expected in both cities in the 2016 – 2025 period.
Bristol follows closely behind, predicted to increase its SME contribution by almost a quarter (23%).
Mark Sismey-Durrant, chief executive at Hampshire Trust Bank, said: “SMEs are forecast to grow their economic contribution significantly over the longer-term, which serves as a critical reminder of the important role these businesses play in ensuring the success of the UK.
“The strength of firms based in the North is a trend we intend to be on the ground to support. SME housebuilders need to work with a bank that employs experts with specialist knowledge of specific locations and markets and that’s what our Northern team will provide.
“We are committed to serving SMEs in the sectors in which we operate. We call on the Government to keep the spotlight on smaller companies by creating conditions which will support their continued growth, as our research demonstrates how much we need these companies to develop and achieve their ambitions.”
The Centre for Economics and Business Research Ltd (CEBR) was commissioned by Hampshire Trust Bank to examine the role that SMEs are playing across the UK's largest cities, analysing the number of businesses in each of the cities alongside the turnover, employment and level of lending to the businesses.
Contributions to the UK economy have been defined using the measure of ‘Gross Value Added (GVA)’.
This is the measure of the value of goods and services produced in an area, industry or sector of an economy, in economics.
In national accounts GVA is output minus intermediate consumption; it is a balancing item of the national accounts' production account. SMEs are defined as businesses that have less than 250 employees.