Following the dramatic Brexit result last Friday, numerous multinational companies could transfer their operations out of the UK and into Europe amid growing uncertainty around Britain’s economy and future trading agreements.
The referendum, which ended 52 to 48 in favour of Britain leaving the EU, is set to impact particularly on finance, technology, insurance and pharmaceutical industries, all of which hold headquarters in the UK and depend on free movement of labour. Sources indicate that London, Europe’s financial capital, could lose as many as 40,000 workers as result of the decision.
Multinational banking firm, Goldman Sachs, which has 6,000 employees in London, and spent £500,000 in support of the Remain campaign, has already warned of a move across the channel.
Richard Gnodde, the co-head of the investment banking division of Goldman Sachs, said: “If passporting was totally removed, we would have to adjust our footprint and where people were located.”
Britain’s largest pharmaceutical company, GlaxoSmithKlein, predicts similar upheaval, given its reliance on the single market and EU funding for science.
Cities set to benefit from the relocation include Paris, Dublin and Frankfurt, which, as financial hotspots, may soon receive hordes of employees from some of the world’s biggest banks.
Given the potential for thousands of employees to be relocated across Europe, long term accommodation options will likely face increased demand. But choosing the right accommodation can often prove challenging. Do you buy a house, rent a flat, or continue splashing out on a hotel?
Digital news provider, Hottelling 2.0, predict mass migration to Frankfurt will mean that more serviced apartments are needed. It’s estimated that finance workers will flock in particular to residential areas like Westend and Sachsenhausen.
Were such an exodus to happen, serviced apartment providers would have to work hand-in-hand with relocation agents to ensure smooth labour mobility.
In April 2015 we spoke in length about the prospect of relocation to London, but with Britain’s future relationship with Europe now in contention, the attention has turned to other countries across the continent.
Anton Constantinou, Content Writer