The UK’s financial services sector is expanding, with more than 1,000 EU financial institutions planning to open EU hubs in the UK post-Brexit
The UK housing market is set for a boost as the country’s financial services sector is expanding, with more than 1,000 EU financial institutions planning to open EU hubs in the UK post-Brexit.
Across the European Union, banks, asset managers, insurance companies and fund managers are packing up their bags to make a smart move to the UK on a mission to continue taking care of their UK client base in the aftermath of Brexit, which is set to create opportunities in the UK housing market.
Regulatory consultancy Bovill’s recent survey looked at data obtained from the Financial Conduct Authority (FCA), and found that more than 1,000 such firms will open offices in Britain after our exit from the EU.
The New Financial think tank has found that more than 300 financial institutions in Britain have already opened EU hubs to continue serving customers in the bloc after Brexit.
Michael Johnson, a consultant at Bovill, comments, these figures clearly show that many firms see the UK as Europe’s premier financial services hub.
With so many companies migrating to the UK and opening additional offices, it is likely to place further demand on the need for both commercial space and residential space. As a result, demand for high quality private rentals and housing for employees and their families is likely to significantly expand.
Those major financial hubs all over the UK, including London, Manchester, Birmingham, Leeds, Milton Keynes and Bristol, are expected to be popular relocation sites.
On this point, there is currently an ongoing drive among many major businesses in the UK to set up new offices away from the capital, increasing employment opportunities in these regions. As a result, these areas are benefiting from rising investment levels, regeneration and increased interest from property investors looking for an up-and-coming investment hotspot.
New employment opportunities and a cash injection for local economies should help to offset any economic loss experienced by UK financial operations who have chosen to move their businesses and assets to European cities such as Frankfurt and Paris.
Jamie Hope, managing director at London estate agent Maskells, comments, the rental market will boom in the short term as a result of European employees seeking a home in London and other major cities.
There is still uncertainty and there will be many who seek to rent until we have complete stabilisation before buying which will then push the sales market forward, Hope said.
Having said that, our viewing numbers were up 265% in January 2020 compared to 2019 so it seems there is already a boost in buyer activity. In recent years, we have seen a rise in viewings but no offers – this year in January our offers were up 1,400% compared to the previous year, he said.
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