The Impact of Brexit on Corporate Rental Allowances

If you are one of many top employees making a move back to London from an EU location, such as Milan, Paris or Frankfurt, you may be in for somewhat of a shock. While you might expect to be offered a four-bed home situated in upmarket Chelsea, you may be more likely to be given a small flat in the less popular area of Battersea.

The Impact of Brexit on Corporate Rental Allowances

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Downsizing

In an attempt to manage the risks of the current economic uncertainties resulting from the Brexit vote, companies are asking employees to look at accommodation on the outskirts of the best districts in the city rather than placing them in spacious family homes in the heart of London, as has previously been the norm. While corporates would typically have looked to allocate between £1,500 and £3,000 per week as a rental budget for workers, they are now targeting accommodation in the £650-£1200 price range. And rather than accommodate the whole family, expats are instead being give the option to accept a cheaper home with the opportunity to travel home to their families at weekends.

The referendum, which took place earlier in the year and resulted in a win for the Leave campaign, prompted questions regarding how the move will affect the economy and how corporations will manage this new risk. There is speculation that larger companies which operate overseas will be looking to relocate many of their UK employees to other countries within Europe to keep them within the European Union.

Positive Outlook

However, traffic is unlikely to be one way. In August a 20 per cent rise in inquiries was reported from relocation brokers representing big international organisations in London. So companies are still placing their employees in London – mainly Italian, German and French, but also some Americans. It seems if property is correctly priced and not too expensive, the demand will continue to be there. Brokers saw a record month for property leasing, with August’s revenue over 30 per cent higher than the same month last year. So if you are looking for an employee relocation company, check out the DT Moving website – there is still plenty to be optimistic about.

Enlisting the help of experts in finding exactly the right property for the right price can ensure the move is as smooth and painless as possible.

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