Brexit woes chasing bankers out of the UK to Frankfurt

Thousands of bankers are expected to move from London’s City financial district to Frankfurt as Brexit looms.

Germany’s financial capital Frankfurt is expecting a rush of thousands of previously London-based bankers, resulting in considerable strain on suitable housing and international school places. The city has always been popular with high-flying financiers for its quality of life, ease of accessing other German regions and excellent choice of restaurants and upscale housing. The UK Brexit referendum result put an end to the need to advertise Frankfurt’s charms, as everyone who’s anyone in London City should be well pleased to move to the German equivalent.

The exodus has started already, with Goldman Sachs, Citigroup, Nomura and Daiwia sending part of their respective teams to Frankfurt even before the outcome of the stalled negotiations becomes obvious. The bankers aren’t the only sector who’ll be leaving, as with them will go accountants, lawyers and programmers, all of whom speak English and are in receipt of enviably high incomes. They’ll all demand classy apartments and first-class international schools for their children – but is the city ready for this influx?

One upscale property rental agency boss isn’t sure, saying an invasion of wealthy expat professionals will exacerbate the already notorious shortage of suitable apartments. The upscale rental market has already been affected by the European Central Bank’s relocation to Frankfurt, leaving around 557 rentals for each 1000 jobs. The city’s 17 international schools will need to plan in advance, as will the 200 private day schools. Some 20,000 extra students are expected over the next three years, with one bank already attempting unsuccessfully to reserve 100 places in one of the most popular international schools.

Admittedly, most banks are simply making contingency plans rather than upping sticks and moving on, and an impressive amount of business may still be done in London. A warning by the London Stock Exchange estimates a worst case scenario of 230,000 lost jobs, but the main concern nowadays is the speed at which the Brexit deadline is travelling. The passporting issue is the main problem, but no-one can say for sure how it will pan out. Under the circumstances, establishing a base in Frankfurt is a sensible move, but who knows where it will end.