According to recent research conducted by regulatory consultancy Bovill, it is estimated that more than 1,000 banks, payment companies, and insurers from the EU will be opening offices in the UK after Brexit.
Demand for office space provides hope after Brexit
This demand for office space in London and elsewhere in the UK brings hope to what is considered by many an uncertain situation.
The plans for new offices are expected to help with mitigating the loss of business that is anticipated due to the results of the general election in December 2019. It also shows that a large number of firms still regard the UK as a financial services hub despite leaving the European Union.
This has been relatively unknown up until now, as many companies are expected to take their business elsewhere once Brexit is in place, with the direct uncomplicated two-way access between the UK and elsewhere in the EU coming to an end in December 2021. This is after the transition period after Brexit has taken place.
Application for temporary permission to operate
Companies in the UK who are planning to open offices in the capital and elsewhere have applied for permission to operate their firms in the UK after January 31. This is the official date when the UK leaves the EU.
Approximately 300 financial companies have opened EU hubs in order to be able to continue to operate and serve customers from February onwards.
Many large companies that are based in the UK have put in placed plans to continue operating after Brexit. Around 7,000 positions will be relocated from London (according to consultants EY) and it is thought 2,400 positions will be hired locally at these new EU hubs.
EU firms buying office space
Over 220 Irish firms have applied for permission to keep serving clients in the UK, as well as businesses from Cyprus, Germany, and France with these countries applying for 165, 149 and 170 permissions respectively.