Enter Your E-mail

Tax professionals are being driven out of London by high house prices and long commutes, says international recruitment consultancy GRS.

According to research, 2007 saw tax professionals migrating west out of London on a hitherto unknown scale - a trend that is set to continue.  Although tax practitioners are being drawn to destinations across the West Country and the most westerly corners of the South East, the stand-out tax relocation hot-spots are the high growth southern cities of Bristol and Southampton, according to GRS.

Angela Parker, a consultant with GRS Tax, said: "Bristol initiated the trend.  But Southampton is also attracting talent away from London.  The Big 4 have long had a comprehensive presence in both Bristol and Southampton.  Recently we have seen tax professionals start moving further southwest to Devon too - PWC and EY have a presence there.  And the South West in general is full of finance, energy and telecom companies - tax professionals are being attracted by roles in both industry and practice."

Although Bristol and Southampton are very different cities, the reason tax professionals are leaving London for them is almost always the same.

Angela Parker said: "People are being driven out of London and towards the booming cities in the west by the cost of housing - as well as their increasingly strong desire for a better work-life balance.  The average house price in Southampton is almost 55% cheaper than the average in Greater London.  But there are other reasons.  A lot of people are fed up of London's horrific commutes.  Furthermore, many tax practitioners also went to good universities in Southampton, Bristol and Exeter and they are keen to move back there."

Bristol is England's sixth most populous city with a GDP of approximately £9.44bn.  With a GDP per head of £23,962 it is more affluent than the rest of the UK.  Bristol has the second strongest economy in England outside of London when measured by GDP per head.  The local economy is reliant on the financial services, aerospace and IT.  200 international companies have their HQs based in the city.  Bristol's financial services sector employs 40,000 people alone.  Between 1995 and 2004 the number of jobs increased by 22.0% (London grew only 14.7%).  Having embraced not only the digital age but also flexible working, it's a natural magnet for qualified professionals in search of better work / life balance.

GRS says the economic pull of Bristol is not the only attraction for professionals seeking to leave London far behind. 

Angela Parker said: "It's not only the jobs that are attracting tax professionals; they're also being tempted by the culture.  Bristol was a finalist for the 2008 European Capital of Culture and is home to the Bristol Old Vic.  Not only does it have a number of established galleries and theatres, professionals are flocking to the contemporary photography, cinema, and art exhibited in converted dockside warehouses there.  And I'm not sure anything in London's concrete jungle can compete with the natural beauty of Clifton George."

"Five years ago, tax professionals would have had to take a very substantial pay cut if they moved down to Bristol.  But we're now in a very candidate driven market and salaries have had to increase to attract the best talent.  It helps that candidates can be guaranteed a quality client base with a level of work comparative to London.  Most regional practice firms are undergoing rapid expansion within corporate tax currently.  Part of the attraction for tax professionals is that the smaller regional offices present a more client-led service than you might typically find in London so candidates find they are able to connect with their clients more.  The opportunities for career progression are often more transparent too."

The phenomenon is also affecting Southampton.  It is the largest city on the south coast and has grown faster than any other town in the south (outside of London) in the last ten years.  Between 1995 and 2004 the number of jobs increased by 18.5%.  With only 2.4 % of the city's population claiming job seeker's allowance, unemployment is also low.

Specific benefits of Southampton listed by tax professionals moving down there are its vibrant nightlife, low cost of living, and cheap transport.  Its low rate of petty crime is also seen as attractive by many Londoners - the burglary rate per person is 0.8% in London, but only 0.2% in Southampton.  A lot of tax professionals are also attracted by the costal location and its proximity to the New Forest.

Angela Parker says: "The trickle of tax professionals flowing west is growing ever stronger.  It will continue to swell in 2008."

Link

GRS Group