Search Results for: brexit

March 7, 2017

London businesses bounce back from initial concerns over the Brexit vote ⁰

London firms’ optimism has rebounded since a poll taken just after the EU Referendum, according to the latest CBI/CBRE London Business Survey; as its the most recent data reveals that a fifth of companies (19 percent) feel more positive about the economy over the next six months, compared to 4 percent in the last Survey. Firms are also more optimistic about their own businesses over the next half year, with over a quarter (26 percent) feeling positive (compared to 8 percent in the last Survey). Over eight in ten (84 percent) of London’s companies see Crossrail 2 as being central to the capital’s successful expansion. Meanwhile, a similar number of firms (80 percent) think sticking to the Government’s current timetables for building Heathrow’s third runway is vital to London’s attractiveness as a place to invest. As the city continues to expand eastwards, businesses recognise the importance of developing the right infrastructure to support growth in the area, especially in the Docklands. Four fifths of firms (84 percent) think that river crossings in East London are essential for boosting the city’s growth.

March 2, 2017

Brexit effect means London’s real estate is much better value than last year ⁰

by Sara Bean • Cities, Facilities management, News, Property, Workplace

In the two years running up to the Brexit vote, London vied with New York and Hong Kong for the title of most expensive world city to accommodate employees and last year it was crowned the most expensive world class city for international businesses to rent office and living space for their employees. Now Brexit’s impact has made the UK look much better value on a world stage as the devaluation of sterling means it now ranks closer to Paris and Tokyo, leaving New York and Hong Kong in a league of their own with much higher accommodation costs. It now costs an average of US$88,800 per person to rent office and housing space in London, well below the price tag of June 2014 of US$124,500, according to the latest Savills Live-Work Index which measures annual accommodation costs per worker in leading world cities. By this measure, London is now 10 per cent cheaper in these terms than it was in December 2008.

February 14, 2017

Cautious London job market post-Brexit, as EU nationals consider options ⁰

by Sara Bean • Cities, News, Workplace

The more recent employment figures for London suggest that until the terms of Brexit are known and put in motion, the jobs market will remain cautious. This is according to the latest Morgan McKinley London Employment Monitor which found that despite an 81 percent increase in jobs available and an 83 percent increase in professionals seeking jobs; compared to a 115 percent increase in jobs this time last year, the 2017 spike was muted in comparison. The 83 percent increase in job seekers month-on-month is coupled with a 29 percent decrease, year-on-year. Contributing to the decrease is the trickling off of non-British EU nationals working in the City, who comprise up to 10 percent of its workforce. In a post-Brexit survey of professionals conducted by Morgan McKinley, these individuals reported either moving abroad, or considering leaving London because of Brexit.

February 7, 2017

Brexit impact on UK’s future workforce size could undermine productivity ⁰

by Sara Bean • Knowledge, Legal news, News, Technology, Workplace

With the UK facing at best, very slow growth, or even shrinkage, of the working population, future changes to migration levels into the UK due to Brexit could exacerbate the financial stresses and strains caused by the UK’s aging workforce. This is according to the Mercer Workforce Monitor™ which claims that companies will need to invest heavily in automation, sectors of society historically under-represented in the workforce and look at ways of increasing productivity. According to the analysis, since 2013, the levels of EU and non-EU born immigration into the UK workforce has filled a gap left by the aging of the nation’s UK-born workforce which sees more in this group leave the workforce – through retirement, emigration or death – than enter it. National growth is closely linked to workforce growth; so reducing its future size would create major headwinds for the UK economy and since another 3.4 million people will reach the age of 65 in 2030; unless the UK decides to make drastic changes to the funding of pensions, health and social care, this smaller working population will be required to proportionally spend more of their income to care for their older citizens.

January 31, 2017

London salaries fall as UK becomes less capital-centric, and it could be due to Brexit ⁰

by Sara Bean • Cities, News, Property, Workplace

London continues to be the region with the highest number of advertised vacancies (248,605) and the highest average salaries (£38,449), but its previously unassailable supremacy may soon be challenged, a new survey suggests. According to the latest UK Job Market Report from Adzuna real-time jobs data average salaries in the capital have fallen more (-3.9 percent) than any other region in the UK in the past year as salary growth in the rest of the UK catches up at a more consistent rate. This also represents a wider shift in the jobs market as the Government creates a solid post-Brexit UK economy that drives growth across the whole country. It is likely growing trends such as companies relocating their headquarters to cities outside the capital such as Manchester will continue as well as reinvestments into northern powerhouses to revitalise former struggling areas and industries. With competition for jobs per jobseeker per vacancy rising from 0.43 to 0.45 in January, jobseekers in the capital may have two hurdles ahead in the shape of a more competitive job market and pedestrian salary growth.

January 26, 2017

UK commercial property continues to bounce back after Brexit, but there’s trouble ahead ⁰

by Mark Eltringham • Cities, Property

Demand for commercial property in the UK continues to grow even as the country prepares to leave the European Union, according to the latest quarterly Royal Institution of Chartered Surveyors (RICS) market survey. The report for Q4 2016 suggests that a large proportion of the increase was linked to the attractiveness of UK commercial property for foreign investors. But there are signs of trouble ahead, as the report acknowledges some negative expectations for London commercial property values amid fears the capital will bear the brunt of any Brexit-led departure of firms. Over the fourth quarter, overall investment enquiries were flat in the London office sector. Although the UK market has largely recovered from its post-Brexit slump, London has underperformed the wider market, with some projects being put on hold, property companies cutting rental growth forecasts and rents beginning to stagnate.

January 17, 2017

Brexit is resulting in a decline in interest among potential recruits from EU ⁰

by Sara Bean • Legal news, News, Workplace

There’s been some concerns among employers on the long term implications to recruitment on the UK’s decision to leave the EU and now a new report suggests that it is among the job sectors where demand for EU workers to fulfill UK jobs is highest where there is the largest immediate dip in interest. The digital research looked at volumes of online searches within different sectors and countries, and the opinions and intent indicators of people investigating a move to the UK. The results reveal that interest in UK jobs for male dominated employment sectors continues to rise, for example in Poland a 22 percent increase in interest in construction jobs can be seen. In contrast, while there has been no obvious decrease in the number of jobs being advertised within the EU by UK employers, the level of interest in employment sectors that tend to attract couples and families are experiencing a decline.

January 12, 2017

Brexit uncertainty won’t dissuade UK workers from moving jobs this year ⁰

by Sara Bean • Flexible working, Legal news, News, Workplace

Employee confidence in the UK has not been shaken by uncertainty around leaving the European Union, as 48 percent admit that they will be looking for a new job this year, claims a new survey by REED. The YouGov research asked more than 2,000 people about their careers in 2017, and found that 43 percent of employees are feeling optimistic about their career prospects, despite uncertainty created by the Brexit vote. Business confidence is also high with 53 percent of UK workers receiving a pay rise from their employer, compared to 41 percent found in the REED Market Insight 2015 – an increase equating to almost an eighth or an estimated four million UK workers according to recent ONS employment stats. While an increase in salary is still the primary motivation for people to look for a new job (51 percent), almost 38 percent (four in 10) would/ have move(d) for a better work-life balance and 33 percent, a third, for a better working environment.

January 4, 2017

UK firms not planning on relocation as a result of Brexit, claims survey ⁰

by Neil Franklin • News, Property

A new survey commissioned by relocation firm Saunders 1865 claims that fears of a mass exodus of UK businesses in the wake of the Brexit vote are unfounded. Its study of 100 UK based multinationals with up to 350,000 employees found that none are planning to relocate their main operations overseas as a result of Brexit. Respondents included banks, consulting firms, technology companies and other organisations with a global presence. The study concludes that this indicates that the UK remains an appealing location within which to base international business. Saunders 1865’s CEO, Tony Coe said, “While anecdotal evidence from corporate clients suggested that the reports of a post-Brexit exodus by companies were overblown, we were frankly shocked that we didn’t receive a single response indicating that a move out of the UK was even being considered.”

December 14, 2016

Surge in take up of London commercial property defies Brexit storm ⁰

by Sara Bean • Cities, Facilities management, News, Property, Public Sector

London commercial property has managed to weather the Brexit storm with a late surge of City deals over the past three weeks set to see Central London take-up in line with its long-term average level of 10 million sq ft in 2016. According to the latest figures from JLL, despite take-up in Central London being subdued in the lead-up to and immediate aftermath of the referendum, City take-up has surged during the last quarter, and is expected to reach 5.3 million sq ft by year end, just 6 percent below the long term average. This is offset by strong take-up in East London, where the recent deal to the GPU at Canary Wharf propelled take-up to 8 percent above its long term average level. The most notable deals of 2016 included – The Government Property Unit (GPUK) took 542,000 sq ft at 20 Cabot Square, E14 which was a sub-lease from Barclays; Apple pre-let 500,000 sq ft at Battersea Power Station, SW8 and will be paying a rent in the high £50 per sq ft; Thompson Reuters acquired 315,362 sq ft at 5 Canada Square, E14, paying a rent of £40 per sq ft; 33 Central, EC4 was pre-let to Wells Fargo who took the entire building, totalling 227,689 sq ft and New Look pre-leasing 127,096 sq ft at R7 Handyside Street, N1C for £77.50 per sq ft.

December 7, 2016

Brexit could lead to a freeze of over a third of UK commercial property investment ⁰

by Neil Franklin • News, Property

The unexpected political events of 2016 will lead to a rise in caution and risk aversion among real estate investors in 2017, making secure income streams more highly prized among core investors globally. This is expected to benefit the UK market, where high levels of transparency and stable legal structures make real estate a safety play, according to a report from real estate advisor Savills. The firm unveiled its predictions for UK real estate at its annual cross-sector briefing this week, taking a detailed look at the commercial property, residential and agricultural markets. The overall story for UK real estate is one of slower growth. In the commercial market, average total returns on UK property investments are likely to be approximately 5.6 percent per annum during 2017-2021, with a 1.6 percent five year capital growth forecast for office values and a 4.4 percent growth forecast for office income returns. The report claims that there will be a fall of around 30 to 40 percent overall, and possibly up to 50 percent in Central London.

December 7, 2016

Business as usual for recruitment and retention in post-Brexit Britain … for now ⁰

by Oliver Watson • Comment, Flexible working, Legal news, Workplace

On 24 June 2016 Britain voted for Brexit. The shock (and narrow) victory caused country-wide concern among the 48 percent of the voting public that favoured remain – apprehension seemingly justified by the immediate weakening of the pound, Cameron’s resignation and the start of ongoing political in-fighting. Speculation over job losses and potential hiring freezes added to a general sense of uncertainty, leaving some UK workers fearing their job security. Since then however, recruitment experts have somewhat softened their predictions for the UK job market as recent reports of month-on-month vacancy growth and record high employment rates have served to inspire confidence. Five months on, how has job applicant sentiment changed in the UK since the EU referendum vote? And what does this mean for businesses hiring in post-Brexit vote Britain? As part of our ongoing tracking of candidate confidence levels in the job market and their career prospects we analysed the responses of almost 28,000 job applicants across the UK and Republic of Ireland – from all ages, experiences and sector disciplines – to gauge how perspectives might have changed pre- and post-Brexit.