Companies to ramp up back-to-work plans after June 21
How are companies planning for life after lockdown and is the UK still an attractive destination?
4 minutes to read
A shortage of supply in the prime lettings market will hamper searches among senior executives in coming months as they plan their return to the office, as analysed here.
However, what are the considerations for corporate tenants in general as the UK economy unlocks and how have tastes changed over the course of the pandemic?
Sacha Hawkins is head of the relocation agent team and diplomatic desk at Knight Frank. She handles relocation enquiries from companies of all sizes looking to relocate staff to the UK across a range of sectors including finance, tech and energy. She tells Tom Bill how employers are planning for life after lockdown.
What changes have you noticed between now and before the pandemic in terms of how companies are moving staff?
The average weekly rent has risen over the last 12 months from around £700 to £850 and that reflects the fact searches have become skewed towards senior employees.
Companies don’t entirely know yet what the new patterns of work will look like and so have held off relocating larger numbers of more junior staff.
So, how are companies taking decisions?
In many cases they’re not yet. The only certainty that companies can cling onto at the moment is the UK government roadmap and the latest indications I have is that things will pick up after 21 June when Covid-19 restrictions end. Initially we thought there would be a spring bounce but then the government released its roadmap, which outlined a slower timetable. We are now expecting the sort of busy summer that at the start of the year we thought would come in the spring.
The inability to plan has been an issue for companies during the pandemic?
Absolutely. Throughout the pandemic, there has been a very close correlation between what the UK government has said and how full our inboxes have been the following week, which reflects how decision-making has become much more ad hoc. Before you would have eight weeks’ notice before a move, now you tend to get the call saying “they’re here and they’re looking”.
How have search requirements changed over the last year?
The most obvious way is that searches used to focus around tube or rail stations and now more requests specify the ability to walk to work. A thirty-minute walk to work is a common requirement. Otherwise the requests are fairly predictable – more outdoor space and balconies. And there has been a noticeable spike in pet-friendly property searches, which is another result of lockdown.
And more bedrooms?
Yes, two-bedroom flats have become very in-demand among couples because of the need to have an extra room from which to work from home. One-bedroom flats and studios have for now fallen off the radar for many couples as part of corporate relocation searches.
Are the types of companies moving staff to the UK changing?
The big trend over the last year is the dominance of tech companies. Demand from the finance sector has been strong but tech overtook it during the pandemic and has consistently been the strongest source of demand over the last 12 months.
What difference has the UK’s successful vaccination roll-out made?
Huge. It was responsible for switching demand back on. When there was a perception that the UK was not dealing with the situation well, it had a noticeable negative impact. Demand was effectively kick-started this year by the success of the UK’s vaccine programme.
What will the corporate relocation market look like over the next year?
In the short-term, activity levels will be closely linked to the UK government roadmap, both in terms of the domestic situation and in relation to international travel. But it won’t quickly go back to where it was. Companies were thinking about mobility budgets before the pandemic. There is a general trend that employees want much more ownership over their relocation so 360-degree packages where everything is taken care of will be less common. Otherwise, based on my conversations with a wide range of employers, we are yet to see where the consensus will end up on issues like flexible working. There is still a broad range of opinion about what the return to the office means but eventually a balance will have to be found.
Photo by dylan nolte on Unsplash