Tariff turbulence has not dampened demand among companies looking to relocate staff to the UK, according to Knight Frank.
Business confidence has dropped and companies have suspended financial guidance in recent weeks due to global economic uncertainty, which has also hampered decision-making.
However, the number of enquiries from companies looking to relocate staff to the UK in April was 8% higher than the same month last year, new data shows.
“London is benefitting from its position as a safe and stable place to grow a business and invest,” said John Humphris, head of relocation and corporate services at Knight Frank.
Executives relocating to London and the surrounding area typically come from the energy, finance, professional services, legal and tech sectors. They include a wide range of nationalities, including the US.
Recent volatility on financial markets means the price of gold has risen sharply as investors seek a safe haven. The UK is well-positioned to attract overseas capital for similar reasons.
Relocation programmes can help companies maintain and attract talent, as well as drive growth, strengthen relationships and manage risks in key markets, studies have shown.
Tom Bill, head of UK residential research at Knight Frank, said: “The problem they can face in the UK and other markets is the tight supply of lettings properties, which remains an issue for tenants in London.
“Some landlords have sold their property due to the Renters’ Rights Bill, a piece of legislation due to come into effect later this year.
“The new rules will make it harder for landlords to reclaim possession of their property and increase risks around the collection of rent.
“The prospect of tougher green regulations and rising mortgage costs are also squeezing supply.”
The number of new lettings listings in prime central and outer London in the first quarter of 2025 was 13% below the five-year average excluding 2020, Rightmove data shows. Meanwhile, the number of new prospective tenants was only 2% lower, Knight Frank data shows.
Opponents of the bill have warned it will make life more uncomfortable for tenants by pushing rents higher, which is starting to happen.
Average rents in prime central London increased by 0.9% in the year to April, which was the highest figure in six months. Quarterly growth was 0.6%, which was last higher in November 2023.
Meanwhile, there was a 1.5% annual rise in prime outer London, which was the highest figure recorded this year.
“As more companies choose London to relocate staff, upwards pressure on rents will only grow,” Bill added.
