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Sinead Moore 22 Mar 2017 02:56pm

Dublin is best choice for London bankers after Brexit

The Irish capital has been named the top destination for London bankers looking to relocate once Article 50 is invoked next week

Dublin has been ranked as the most favourable destination for London bankers to move to, followed by Amsterdam, Valetta, Luxembourg, and Brussels while Frankfurt and Paris trail behind in sixth and ninth place respectively, according to a study by online removals platform Movinga.

Despite its high income tax (52%), Dublin’s proximity to London, perfect English language comprehension and more affordable high end rent prices (£1,669.08) helped the Irish capital secure the top spot.

Brussels has the most affordable high end rent prices at an average monthly cost of £1,283.56 while Paris has the most expensive at an average monthly cost of £2,841.69.

According to the study, Milan is the least desirable city for London bankers due to the expensive high end rent (£2,461.00), the long distance from home (130 minutes), expensive flight tickets (£180.78), and low English comprehension (34%).

“Everyone talks about Paris and Frankfurt as the new financial centres of Europe after Brexit,” said Finn Hänsel, managing director at Movinga. “But other cities like Dublin, Valletta, Luxembourg and Amsterdam may actually be better equipped to make these workers feel happy and at home. Individuals and businesses alike should consider the unique factors important to their relocation before planning their move.”

Meanwhile, Goldman Sachs this week revealed plans to relocate hundreds of London-based staff once Article 50 is invoked.

In an interview with CNBC, Ricahrd Gnoode, chief executive of Goldman Sachs International, said, “This is the period where we execute on our contingency plans”.

According to Gnoode, these plans will involve “a combination of things”.

He told CNBC that Goldman Sachs already had a “significant European footprint”.

Gnoode added that the bank already has banking licensees in both Germany and in France as well as offices in many other capital cities around Europe.

“Over the next 18 months or so we’re going to upgrade those facilities. We will be taking extra space in a number of them, and we will be increasing our headcount, we’ll be increasing our capability, the infrastructure around those facilities,” he said.

“Our requirement and our obligation is that at the end of this process we’re in business for our clients without any disruption, and we’re going to have to start to exit on those contingency plans to make sure that we are in that position.”

Gnoode said, “We’ll obviously hire people inside Europe itself and there will be some movement.”

When asked how many staff would be moved, Gnoode said “this is in the hundreds of people as opposed to anything much greater than that”.

Goldman Sachs would not confirm an exact figure or elaborate on the chosen relocation destinations.

Gnoode stressed that “this is all in the context of contingency planning” and that the bank’s eventual footprint “will depend on the outlook of those negotiations and what we’re obliged to do because of them.”

He added, “Whatever the scenario, whatever the outcome, London will remain for us a very significant regional hub and a significant global hub and London will remain a very important financial centre”.

Movinga's study also revealed that startup employees - whose requirements are different to those of bankers - would be happiest in Berlin due to the widespread use of English, the number of co-working spaces, access to capital and lower average shared rent (£393.47) and monthly travel costs (£68.43), the study revealed.

Warsaw and Budapest follow in second and third place.

Berlin ranks second for availability of capital (9.90) and number of coworking spaces (93), with Paris in first place for both. However, the relative affordability of living in Berlin compared to Paris makes the city far more suitable for startup employees.

Copenhagen was found to be the least desirable city for startup employees to relocate to due to the very expensive shared rent (£957.60), low access to capital (3.62), and the high price of a 0.5L beer (£5.11).


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