Brexit

Why does London still reign for Gen Z?

Nestpick, an online housing search engine servicing rental markets in 200 cities around the world, ranked 110 cities by their alignment to 22 indicators based on the values, digital connectivity and leisure expectations of people born between 1997-2012.

Who are Generation Z?

Following research from the Pew Research Center, people born in this 15-year timeframe – Generation Z – are said to share common key social, political and technological experiences.Says Nestpick: “Born into the Fourth Industrial Revolution, a post-9/11 world, the climate crisis, and a global recession, Gen Z-ers are known to be digital natives who value security, diversity and autonomy, and aim to achieve it through pragmatism and determination.”
Why is attracting Generation Z important?

With the majority of Generation Z now coming of age and entering the workforce in the wider context of aging populations, this in-demand and digitally connected talent pool will be working alongside artificial intelligence and grappling with the everyday challenges of complex change. Nestpick’s index therefore aims to help employers of this globally minded and globally mobile group to determine which cities around the world are meeting their needs, and consider how they are making themselves attractive destinations to appeal to the creators, advocates and pioneers of tomorrow.

Top 10 cities for Generation Z around the world

Crunching a range of data from e-governance, digital privacy and security, education, internationalism, the right to protest, social entrepreneurship to the AI sector and affordability, Nestpick ranked 110 cities based on their current or projected economic strength. It found the top cities to be:

  1. London

  2. Stockholm

  3. Los Angeles

  4. Toronto

  5. New York

  6. Berlin

  7. Munich

  8. San Francisco

  9. Amsterdam

  10. Vancouver

Why does London continue to be attractive to international talent?

Commenting on the findings, Ömer Kücükdere, founder and CEO of Nestpick.com, said: “Taking a values-centric approach to this study, we looked into which cities around the world best understand, advocate, and embody the principles Gen Z-ers prioritise.“Interestingly, despite the uncertainty surrounding Brexit and the high costs of living, our research has found that London ranks first overall.“Adding on to the advantages of a weakening pound, London has shown how it is at the forefront of digitalisation, advocacy, entertainment, and business. Brexit or not, London has the foundations to continue magnetising Generation Z in the long-term.”

UK scraps plan to end freedom of movement

The UK government has been forced to abandon its plan to end freedom of movement for European Union nationals immediately after a no-deal Brexit.Instead, the Home Office has announced it will reinstate a previous scheme that will grant a three-year 'right to remain' to all EU nationals entering the country between the planned Brexit date of October 31 and the end of 2020.The U-turn came less than a month after the new government led by Boris Johnson announced that freedom of movement would be brought to a halt the moment the UK left the bloc, unless an agreement had been reached with Brussels beforehand.However, business groups, lawyers, migration specialists and lobbyists for the three million-plus EU nationals already in the UK, immediately pointed out it would be impossible for border control officers to differentiate between returning Europeans who had a legal right of residence in the UK and anyone else arriving from the continent.Although the government has introduced its Settled Status scheme, which will guarantee the rights of permanent residence to EU nationals who have been in the country for at least five years, applicants have until the end of 2020 to register under the scheme and, so far, only about a third have done so.

Brexit relocations push up EU house prices

At a time when hundreds of senior staff, particularly in the financial sector, are being relocated from London to new European hubs, and when many EU expats are returning home because of Brexit uncertainties, the price of prime accommodation in desirable areas of such cities as Frankfurt and Paris has rocketed.The latest Prime Global Cities Index from property consultancy Knight Frank – which tracks the movement in luxury residential property prices across 46 world cities – found that Berlin and Frankfurt saw the largest increases over the past year.The German capital recorded the strongest price growth rate globally, with a 12 per cent rise year-on-year, while Frankfurt – the financial centre and home to many new European hubs – was in second place on the list.A recent report from property research company bulwiengesa also found that, between 2010 and the end of last year, house prices in Frankfurt had doubled. Kate Everett-Allen, head of international residential research at Knight Frank, said that prime prices in Berlin and Frankfurt currently stood at about €11,500 (£10,456 approx) per square metre and €13,500 (£12,275) per square metre respectively.

Brands and companies move their European headquarters

Yet, according to a report in the Financial Times (FT), price rises have been even steeper in Amsterdam, “The housing squeeze looks set to intensify because of Brexit, as the European Medicines Agency and multinationals, including Sony and Panasonic, move their European headquarters from the UK to the Dutch cultural and financial capital.”Barbara Van der Grijp, managing director of estate agents Engel & Voelkers, added, “Every day in the newspaper, we hear about another company coming here. I expect a lot more people to come from [the UK]. We have people who want to buy places without seeing them, just based on the pictures.”According to Knight Frank, house prices in Amsterdam rose by 64 per cent in the five years to September 2018, but disposable household income grew just 4.4 per cent in that time, despite ultra-low unemployment. ING puts the average Amsterdam selling price at €470,000 (£427,000 approx) compared with a national average of €300,000 (£272,000 approx), reported the FT.

Brexit uncertainty drives people out of London

Meanwhile, according to The Times, wealthy French families are leaving London amid concerns over a hard Brexit and are helping to drive house prices in Paris to a record level. “The rise is particularly steep at the luxury end of the market, with les Brexités, as they have become known, seeking flats near the capital’s finest schools. Some flats are selling for more than €3 million,” reported the newspaper.Alexander Kraft, chairman of Sotheby’s International Realty France-Monaco, said, “Ever since a hard Brexit has been on the cards, the expatriates have been coming back. They are bankers, asset managers, executives in big companies.”The Euro Weekly newspaper reported that sale prices in the desirable Sixth Arrondissement rose from €11,300 (£10,272 approx) per square metre in January 2015 to €14,000 (£12,000 approx) per square metre in January this year. In affordable areas of Paris, such as the 19th Arrondissement, prices rose from €6,500 (£59,000 approx) in January 2015 to €8,350 (£7,591 approx) in January.The Euro reported, “A major contributor to rising demand for French real estate is the impending UK Brexit from the EU. This factor alone has an outsized impact on property prices, given that so many people from France are living in the UK, and vice versa. Expatriates from both sides are now looking to shore up their portfolios by buying property in Paris and other parts of France to protect against a downturn in the UK.”

UK house sales stronger than normal in August - Rightmove

LONDON (Reuters) - August, normally a quiet month for Britain’s property market, has seen a surge in sales, possibly due to buyers seeking to conclude transactions before the country leaves the European Union on Oct. 31, property website Rightmove said on Monday.

Rightmove said sales in the August period, which cover the four weeks to Aug. 10, were 6.1% higher than a year earlier and their strongest for the month since 2015, bucking a generally sluggish trend since June 2016’s referendum on leaving the European Union.

“While the end of October Brexit outcome remains uncertain, more buyers are now going for the certainty of doing a deal, with some having perhaps hesitated earlier in the year,” Rightmove director Miles Shipside said.

New Prime Minister Boris Johnson has promised to take Britain out of the EU by Oct. 31, even if that means leaving without a transition deal - something most economists think will cause major disruption to businesses and overseas trade.

But British consumers have largely shrugged off Brexit worries so far, bolstered by a strong labour market and the fastest increases in wages in 11 years, in contrast to businesses, which have held back from making major investments.

House price inflation has slowed since June 2016, according to official figures. But this has largely been driven by price falls in London and surrounding areas, which have been most affected by higher property taxes on expensive housing and fears of post-Brexit job losses in the financial services sector.