They’re losing significantly in terms of quality of life [in London] it is increasingly difficult for banka to convince people to come to the capital.
London rents too high even for young bankers
Middle-income Londoners tend to assume that the migrant poor will always get by somehow, bunking up six to a room or sleeping in shifts. But London is quite passe now in this regard. The brains and the money have moved elsewhere. Londons “talent pool too costly and too shallow.”
Some moving jobs out of the city or even out of the country.
Investment banks have started moving back office and IT jobs to cut wage bills bloated by what they consider to be expensive UK-based workers.vCredit Suisse Chief Executive Tidjane Thiam last year estimated the Swiss-based bank could save 230 million Swiss francs a year if it moved almost 2,000 back-office positions out of London.
For financial sector workers with client-facing roles that must be based in London, moving to more affordable property in Bournemouth – where JPMorgan has based 4,000 tech staffers
As well as being the world’s most expensive office market (according to estate agents CBRE), London also has the 12th-highest cost of living in the world and the highest among EU cities, research from consultancy Mercer shows.
It’s not about cheap and expensive, it’s about where you can find the right people to do the right job?
“As long as the front end stays, I’m pretty complacent,”
“We are in the top percentage of earners in the country and we can’t afford a comfortable home in London,” said a 31-year-old woman, who works at one of Britain’s biggest banks. Although she has no plans to leave her job, she will be moving her family out of the city.
“If we can’t afford it, who realistically can?”
A study by the Centre for Economics and Business Research forecasts a range of scenarios, including one of a year when a typical worker aged 22 to 29 would have to spend at least 60 per cent of net income on rent for an inner London studio flat.
Such expenditure would force many people to flat-share. For a large group of employees, including nurses, this is already the case.
However, the study says this would extend to many young staff in scientific research and development by 2018, teaching and the property business by 2019, telecommunications by 2021 then architecture and engineering by 2023.
In 2024 young staff in computer programming and broadcasting would be affected, followed by those in advertising and market research in 2025 then publishing and information in 2027.
If the current housing market trend continues, by 2040 only young financial sector employees would be able to rent an inner London studio flat without coming under such “extreme housing pressure”. A one-bedroom inner London flat is already unaffordable to all young professionals apart from those in about half a dozen sectors including City workers, insurance and pension fund employees, doctors and management consultants.
London is not a very nice place. It’s also really expensive. No one wants to live here and when we can’t retain skilled employees it’s over nothing else matters.