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Further signs are appearing that the economy in London is continuing to prosper, and the findings of a recent survey by a recruitment firm are particularly reassuring.
The financial sector inevitably took a hit after the events of 2007 and the subsequent economic crisis. The new caution in the sector – both self-created and to an extent imposed upon it – was reflected in the property market. There were fewer deals, fewer lets, a move to outskirts properties to economise on rents and an overall tightening of belts under the City suits.
However, the report by Morgan McKinley reveals that vacancies in financial services companies are on the up – as much as 67% last month in comparison with the same month the year before.
In terms of figures, there were 8,955 new jobs in this sector in comparison with 5,355 at the same time the year before. And the increase is in quality as well as quantity: salaries for new positions were up 21% in April from 2013.
While the report indicated a small dip in most of its figures earlier this year, it attributed this to seasonal influences and points to the overall increase.
This upward trend could be in part due to the ‘new’ financial sector, otherwise known as ‘fin-tech’ –‘technology that engages with or delivers financial services’ – occupied by short-term online loan companies, mobile payment companies and currency exchanges. All these business models, and many others in this sector, have been facilitated by the leaps in technology over the past few years. That it’s this ‘new’ sector that could be driving the changes is also evidenced by the news that Barclays is increasing its number of job losses by 2,000 to 14,000.
Morgan McKinley also attributes much of the increase in vacancies to compliance requirements. Traditional lenders, banks and financial institutions are all being placed under scrutiny by legislation, as will, no doubt, many other new-on-the-block lenders before too long.
As a reaction, or pre-emption, of such regulations, compliance departments in the financial services companies are increasing in size, and pushing up the number of vacancies in the market.
This news was brought to you by Morgan Pryce, a specialist tenant acquisition agent with offices in Oxford Circus and the City. Morgan Pryce specialises in search, negotiation and project management and works exclusively for tenants.