How the Corporate Relocation landscape is changing in 2023
Corporate Relocation Services trends for 2023 and why the landscape is changing.
Chiltern Relocation has noticed a shift in corporate relocations in the last six months. Having been in the industry for over 18 years, Chiltern Relocation has moved hundreds of corporate clients for international assignments – however the corporate relocations services landscape is changing as a result of four key factors.
- Fewer families are relocating. The majority of enquiries that we currently receive are for single employees or couples
- Relocation contracts are shorter. Whereas we would look for a two-year tenancy agreement in the past, one-year contracts are now more requested
- Corporate rental budgets have not risen in line with the soaring rental prices
- Relocating employers are no longer demanding central locations with a short commute
These changes are as a result of a number of factors
Fewer families
Whereas in the past we would move a CEO/CFO/COO and their family, we are now relocating middle management without a family. The cost of moving a top tier executive can be eye watering with monthly rental budgets between £4k-15k/month in addition to helping to fund school places and providing orientation packages. In reality, with budgets being squeezed many corporates are no longer funding private school places and with the increasing difficulty in securing a good state school option – due to catchment issues and long waiting lists – it means the schooling issue a big one for relocating families.
Shorter contracts
With fewer families relocating it means that those that are relocating are often single or a couple and the corporate institution is looking for quick results from the relocation. A corporate client would usually seek a two-year minimum rental agreement but now one year is the norm.
Rental budgets are being squeezed
The UK is continuing to witness rent rises across the country and most significantly in London. A survey by RICS (Royal Survey Institute of Chartered Surveyors) suggests that rents could rise by 15% in 2023. Indeed, rental rates are unlikely to drop in the short term due to the recent interest rate hike which is putting off buyers in addition to the shortage of first-time buyers. House prices are still increasing leading to higher deposit requirements and with more restrictions now being placed on landlords, many are selling their buy-to-let investments thereby further reducing available rental stock.
The rise in rental rates is leading to difficulty in sourcing corporate accommodation within budget meaning that employees are being forced to fund the gap themselves or look at alternative locations or accommodation.
Corporate ‘hotspot’ locations are changing
During the past 18 years as a corporate relocation company the remit for a corporate relocation would always prioritise proximity to the companies office. The stipulation would be for walking distance to the office or a commute of no more than 20 minutes. However, this is now changing. With more and more employees able to enjoy flexible working conditions following the pandemic, we are seeing a rise in demand for properties with WFH space (an extra office or garden room) that is located that bit further from corporate headquarters. The continuing rise in rental costs is also pushing relocating employees further out with increased commute times.
How Chiltern Relocation can help with the changing corporate landscape
Chiltern Relocation differentiates ourselves from global relocation companies by being as adaptable as possible. As a dedicated corporate relocation services provider we are always on hand to speak, email, or SKYPE our clients in person to give advice, reassurance and answer any questions. We handle all the negotiations, essential documentation, source schooling (if necessary), ensure ongoing reporting, arrange furniture rental packages and additional services such as culture awareness training, driving in the UK lessons or guides to healthcare in the UK.
As a corporate relocation company Chiltern Relocation is able to handle relocations across the whole of the UK with a network of over 125 consultants enabling us to have nationwide reach.
With our corporate relocation services our corporate client’s time at a premium, we are able to conduct many viewings virtually. Our consultants either view the properties via live Facetime calls with the client or they view a selection of properties and send video clips and photos. With the rental market moving so fast this method also means that we are able to secure ideal accommodation when it comes to the market.
If you would like further information regarding our Corporate Relocation service, please do contact us on 01494 672086 or email enquiries@chilternrelocation.com or visit www.chilternrelocation.com
