City rents set to soar as banks drop threats to quit UK | Business | guardian.co.uk .
London property consultants King Sturge say:
City of London office rents will rise sharply this year thanks to improving confidence among financial institutions and supply shortages.
As the Guardian notes:
Despite reports that banks and hedge funds are considering moves overseas because of the government’s new tax on bonuses and a wave of public anger, Mark Bourne, head of City agency at King Sturge, says threats of an exodus are not being carried out.
“We put it down to sabre rattling by some of the powerful men in banking who have got a voice. But London is linked to the global recovery and that’s too important for banks to move away from,” he said.
“We expect any effect (of institutions leaving) will be negligible or marginal.” He expects this year to bring “further internationalism” of the City as banks from China, France and elsewhere set up big offices.
Precisely. And as some of us have said all along.
You just have to ignore those who say such things. They never mean it. As has been proven time after time after time.
4 Responses to “The banks are staying ion London”
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Oh I think some people mean it when they say they’re considering relocation Richard. Some are announcing it for effect (as you say). Others read the media reports of others who are ‘consiering’ a move and naively think the process is much easier than it is. Eventually they come to apopreciate that the conditions and consequences of such a relocation make it wholly impracticable for a whole host of reasons.
Mark
Agreed: people say many things rather foolishly, even to journalists
But in that case we still have good reason to ignore them!
Happy new year by the way
Richard
Whilst I am sure are right, Richard, I should say that King Sturge as property consultants have a vested interested in talking up the property market. I wouldn’t rely on their published commments.
James
Entirely possible you’re right
Also possible they are
The world is not created by press release (or, I’m told, blog)
But this one has a ring of credibility
I suspect bank losses are over – they have over-provisioned those they can foresee already so there is little reason why the market will not go up, short term – until they make the next crash, of course (see blog on John Kay this morning)
Richard