The current state of relocation in The United Kingdom | ReloNews #4

As we support our clients in the UK with Destination Services,?we've been seeing our consultants tackle more and more challenges there.

Do we also have solutions to these challenges? Read on.

???IMMIGRATION

Visas are being delayed because of the huge surge in demand. Immigration authorities have fewer resources to manage the increasing backlog, which naturally increases waiting times. It can sometimes take up to 3 months for a visa to be granted.?

For relocation companies, this means?it’s hard to schedule home search consultants?at short notice. In particular, orientation and home search days prove to be challenging for those assignees who have limited temporary accommodation allowances.?

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???HOUSING

Currently, a 30-day temporary accommodation in the UK is rarely enough.?

The reasons?

• Properties in the UK come on to the market 6 weeks prior to being available for move-in. As soon as this happens, anything reasonable is snapped up almost immediately.
• During 2020 and 2021, property owners exited the rental market to increase their assets. As a result, the amount of rental property stock has decreased dramatically.
• People are back on the move again, thus we are seeing a huge influx of new assignees into the UK now.?

All the above created an?environment of intense competition?for properties.

Another factor to consider here is the?lease terms.

As property owners are looking to mitigate the risks, they are highly likely to accept 6-month break clauses. We are finding that an offer of a?2-year lease with a mutual break from 12 months is becoming the norm. Furthermore, if multiple offers are coming in, there will be no negotiation on the asking price.

???PETS

During the pandemic, a lot more assignees got pets. This is lovely! But in terms of relocation, this restricts the number of properties available to view: property owners do not need to accept pets and so this will reduce the number of properties we can visit.

????UTILITY COSTS

Utility costs have?risen?substantially and will continue to do so for the foreseeable future.?Companies relocating employees must be prepared to increase their allowances for housing or fuel.?

???SOLUTIONS

• Review your temporary accommodation allowance?to accommodate for current realities and timing.
• Warn assignees that?swift action?is imperative: as soon as they see a house that will work for them, they should act immediately.?
• Advise assignees that they may need to?adjust their wish list and ideal living scenario in order to secure a suitable property and be a little more flexible where possible. This could include widening their geographical search area.
• Review the utility allowance?to make up for increasing utility costs.
• Require?minimum amount of work?to be done before tenancy start.?

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All of the above paint a gloomy picture, but it needn't be.?We’re simply facing an unprecedented situation: the world is coming to life again after two years and of course things cannot be the same as before.

We are still here, still ready to assist you, your clients and their assignees through their transition.?

For any questions on what it means to relocate to the UK, the current struggles and how to overcome them, our UK team is ready to step up to the challenge. Get in touch with Andy Featherstone and let’s take it from there.?

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