The UK stays an “enticing vacation spot” for prosperous abroad staff with prime London rents placing of their strongest rise in a yr, knowledge from Knight Frank reveals.
Enquiries within the first seven months of the yr from firms seeking to ship workers to the UK have been 8.5% increased than 12 months in the past, based on the property agent.
This resulted in common prime central London rents rising 1.7% within the yr to July, which was the strongest enhance in a yr. Whereas prime outer London lettings rose 1.8%, the strongest since final October.
The agent says these rises defy gloomy UK numbers.
UK retail gross sales rose 0.9% in June, in comparison with a fall of two.8% in Could, however fell wanting a 1.2% consensus uplift.
Whereas the economic system is predicted to have grown by simply 0.1% within the second quarter when official knowledge is launched on Thursday, in comparison with a 0.7% bounce within the first three months of the yr.
“Regardless of the unsure backdrop, demand from the company relocation sector in London and the encompassing space has held agency,” says Knight Frank head of UK residential analysis Tom Invoice.
He provides that company relocations to the UK usually come from the power, finance, skilled providers, authorized and tech sectors.
In latest months, Meta, Apple and Amazon posted robust monetary outcomes, whereas a number of US regulation companies have boosted their presence within the UK.
“London remains to be seen as a premier location to ship workers,” provides John Humphris, head of relocation and company providers at Knight Frank.
“There’s a vital mass of expertise already right here that pulls folks in, in addition to the attraction of the language and time zone.”
Additionally, restrictions to non-dom guidelines by the earlier Conservative and the present Labour authorities over the past 18 months are “not notably related” for the company relocation market, Humphris factors out.
Invoice provides that “wholesome demand and tighter provide imply we count on rental worth development to maintain climbing by means of the remainder of this yr”.
