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Brexit threat to London market if financial services jobs go overseas

New research by Bloomberg suggests that thousands of financial services jobs in the capital are under threat thanks to Brexit - and this could destabilise the already-fragile London housing market.

Bloomberg estimates that many banks are in what it calls ‘Brexit limbo’ with uncertainty as to whether the City of London will retain its current status as a financial centre. Chancellor Phillip Hammond has said most banks are planning “a very light touch model...with a few people located inside the EU and the bulk of their business remaining in London.” 

But Bloomberg quotes Manfred Weber, leader of the Christian Democrats in the European Parliament as saying: “When Great Britain is leaving the European Union, for us it’s not thinkable that, at the end, the whole euro business is still managed in London. The euro business should be managed on EU soil.” 

Bloomberg says potential staff relocations from London include 4,000 staff from J P Morgan, 1,000 from Morgan Stanley, 1,000 from Goldman Sachs, 1,500 from UBS, 1,000 from HSBC and 150 from Barclays.

This adds up to a potential 8,650 jobs leaving, out of a total of 48,000 London-based posts currently accounted for by these companies. Bloomberg says it does not know whether three other big players - Deutsche Bank, Citigroup and Credit Suisse - will relocate any of their 24,600 London-based staff.

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