An oil price rally has boosted demand for property among oil company executives, according to Wendy Perez, Knight Frank’s head of residential corporate services.

The number of enquiries from oil company staff looking for rental properties in the first two months of this year was 65% higher than the same period in 2017, data from the UK corporate relocation arm of Knight Frank shows.

“We saw a marked drop-off in enquiries from the oil industry in 2016 and 2017 and we have seen the exact opposite happen in 2018” said Wendy, who has worked in the global mobility industry with blue chip companies in the US, Europe and Asia. “Some are looking for family houses between £5,000 and £7,000 per month and the rest want flats between £2,000 and £3,000 per month.”

^{Above: Wendy Perez, head of residential corporate services at Knight Frank talks to Tom Bill.}

The oil price has risen from a recent low of approximately $28 per barrel in January 2016 to between $60 and $70 per barrel at the start of 2018, helped by a cut in production among oil-producing countries. The price fell from highs of over $100 per barrel in the middle of 2014 due to oversupply concerns.

Two-thirds of industry leaders in the oil and gas sector said they expected to increase capital expenditure in 2018 compared to 39% in 2017, according to a survey by DNV, a technical advisor to the oil and gas industry.

“With oil at about $65 per barrel, the pressure on costs has eased,” said James Dunsford, a business development manager at oil and gas recruitment specialist Fircroft. “There is no frantic recruitment yet but there has definitely been an increase in movement so it comes as no surprise that companies are upping their staffing and relocation plans ahead of more projects coming online.”

The pick-up in demand among oil and gas executives has accompanied a wider increase in activity in the south-west London and Home Counties lettings markets. The number of new prospective tenants was a third higher in the year to February than the previous 12-month period. Meanwhile, the number of tenancies agreed by Knight Frank was 18% up over the same period, while viewing numbers rose by 25%.

“We have seen a pick-up beyond the oil and gas sector but the market remains incredibly price-sensitive, which is something landlords need to bear in mind,” said Neil Cunningham, Knight Frank’s head of lettings in south-west London and the Home Counties. “Tenants are not hugely location-specific and prepared to pick and choose the area where they live across the region.”

With companies relocating their executives to London and the Home Counties every day, the Residential Corporate Services team is on hand to help them find the perfect home. Each year, we assist hundreds of corporate tenants and relocation agents with home searches, working closely with our global residential and commercial network.