Is a London weighting still relevant in our flexible working environments?

Welcome to Issue 48 of "Ramblings of a Recruiter in Real Estate" – your exclusive insider's guide to navigating the world of real estate recruitment in 2024!

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In our last issue, I shared the variety and also some of the pitfalls of psychometric testing tools, you can check out the full briefing here. In this issue, we discuss:

1. Is a London weighting still relevant in our flexible working environments?
2. Updates from the latest episodes of the Accelerating Careers in Real Estate Podcast featuring Will Bax and Honor Barratt.
3. The newest opportunities from the development team at Macdonald & Company.

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London weighting was introduced in 1920 by the civil service, is it still relevant in a flexible working environment?

This is a complex topic for what is intended to be a stream of consciousness, but I invite your comments and questions. We have the convergence of historical and recent events: introduced by the civil service in 1920, 100 years we have a the cost of living crisis, recent double-digit salary growth that has come to an abrupt end in 2023–24, YoY rail fares inflation (rising by 5% in 2024), and an increase in office attendance.

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So what does the Macdonald & Company salary data say?

Today, there remains a premium to London salaries. London has a 30% premium in real estate salaries across all skills and seniorities (￡65,000) to the rest of England (￡50,000). The second highest median salary band is in the South East, with the lowest in the North East. The more senior and best paid (75th percentile) are benefitting from a premium of 28% in London compared to their peers elsewhere in England, whilst the lowest paid (the 25th percentile) have a premium of 14.8%. So, the London premium is still prevalent, but will it shrink? We thought so in 2020–2022, as working from home became more widely available, and employees could benefit from reduced living costs due to less travel and lower spending on lunches and coffees. We thought the popularity of working in London and other major cities in England would rise. They would become more family-friendly, and open previously untapped recruitment pools as flexible hours were more widely adopted. Improving availability of talent therefore could improve supply and temper salary inflation in our major cities. We also thought this would be to the detriment of suburban employers who historically have flexed their closer-to-home benefits to compete with London salaries.

Not "Is London Weighting still relevant 100 years on?" it should be "Is it enough?"

However, today in 2024, we are witnessing a harder line on working from home; more frequently, employers are adopting a 3, 4, or 5-day office attendance policy. Transport costs are not subsiding despite greater volumes of travelers, and London accommodation rates are on a steep incline for both homeowners and renters alike. As such, the question maybe should be turned on its head. Not "Is the London Weighting still relevant?" it should be "Is it enough?"

For more details on salary benchmarking using the most comprehensive real estate salaries, please contact me.

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??? Hear from the Experts ???

In this week's Accelerating Careers in Real Estate Podcast episode, I share the podcast booth with Honor Barratt , CEO Birchgrove . Birchgrove is committed to building assisted living developments entirely for rent. Honor talked so candidly about being lured in to real estate for a fresh challenge after succeeding in media and also her addiction to learning.

or on Apple Podcasts

In our latest ? Espresso Episode ???

In this ESPRESSO episode of Accelerating Careers in Real Estate, I revisit the conversation with Will Bax from the Autumn of 2020. Will was the CEO of Retirement Villages Group Ltd and answering my question on how does he know when he reaches his comfort zone.

or on Apple Podcasts

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?? Explore Career Opportunities with Macdonald & Company

Despite the summer hols, the team hasn’t slowed down so discover the latest roles in the UK development sector, powered by Macdonald & Company:

1. Head of London Acquisitions & Development: are you ready to steer the conversation from the developer perspective on future acquisitions and development opportunities in the commercial and super prime sector. Salary: ￡150,000+
2. Senior Project Manager (Mission Critical Services): Expertise in major commercial/heavily serviced environments, with mission-critical facilities a must. Salary: ￡90,000 - ￡120,000.
3. Development Manager: Working mixed use development with a social benefit, you will be essential in the early phases of design and planning for affordable residential development. Salary ￡65,000 to ￡80,000 plus 40% bonus.
4. Fit-Out Project Manager (Life Sciences): Join a team dedicated to creating new biomedical facilities across the UK, with experience in critical systems being advantageous. Salary: ￡65,000 - ￡80,000.
5. Calling Engineers or Project Managers to be a Development Manager: Oversee projects in the commercial and living space, from new builds to asset improvements across the UK. Salary: ￡65,000 to ￡75,000.
6. Investment Analyst: ability to underwrite new acquisitions for central London commercial development, excel wizardry essential with support and mentoring to be a future investment manager. Salary ￡55,000 to ￡65,000.

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?? Shape the Future with Us!

We value your input! Do you have a real estate recruitment topic or podcast guest in mind? Let's collaborate! As we wrap up, stay tuned for more updates, insights, and transformative opportunities in real estate. Keep reading and chasing those real estate dreams! ?????