In the UK, rental supply remains around 23% below pre-pandemic levels (Zoopla, 2026), while demand has continued to outpace availability. For an employee arriving in a new city with limited local knowledge, a demanding start date, and a family in tow, navigating the rental market is already a challenge in itself. Doing so whilst simultaneously onboarding into a new role can be stressful, and in many cases that can be a risk to the success of a relocation. Organisations operating internationally will recognise a similar dynamic in varying degrees.
How Housing Constraints Affect Mobility Programmes
The consequences for organisations include:
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Mobility programme delays
Candidates are increasingly factoring housing reality, not just housing allowance, into their decision to accept a move. Where suitable accommodation cannot be secured quickly, offers are often pushed back.
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Failed relocations
Employees who leave shortly after relocating represent a direct cost to the business. In recruitment, lost productivity, and the disruption to the teams and projects they were brought in to support.
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Duty of care gaps
An organisation that moves an employee to a new location carries a reasonable expectation of responsibility for their welfare during that transition. Where housing support is limited to a cash allowance and a list of letting agents, that duty of care is, at best, partially fulfilled.
*In the UK, the Health and Safety at Work Act 1974 creates a specific legal duty for employers to take reasonable steps to protect the welfare of their employees.
Why relocation allowances are not sufficient
The relocation allowance model was designed for a different housing market. The assumption that an employee with adequate funds can navigate an unfamiliar rental market efficiently is harder to sustain in conditions where available stock remains well below historical norms.
In the UK, HMRC currently permits employers to provide tax-free relocation assistance of up to £8,000 per move, a workable starting point for many straightforward domestic relocations, but one that does not address a specific corporate housing challenge: the gap between arrival in a new city and the point at which settled, long-term accommodation is secured.
The case for getting it right
Employees who navigate the first weeks in a new location without adequate housing support are at elevated risk of early exit. In the UK, Oxford Economics calculates the average cost of replacing a departing employee at over £30,000, covering recruitment, onboarding and lost productivity. A figure that places the cost of quality settling-in provision in a different light.
Organisations that can articulate a clear settling-in support package at the offer stage are also better positioned when competing for mobile talent, particularly for candidates who have previously experienced a poorly supported relocation.
There is also an equity dimension worth noting. Access to quality temporary accommodation secured quickly and without local knowledge or an established credit history is not equally available to all employees. Employees relocating from overseas, or from less advantaged backgrounds, face proportionally greater barriers. A structured settling-in provision removes those barriers and ensures that mobility is equitable in practice, not just in policy.
What settling-in support looks like
The Square provides vetted serviced apartments for business travel, designed around the needs of relocating employees. We work with HR teams and procurement leads to deliver consistent, high-quality temporary accommodation that supports employees from the point of arrival through to securing a permanent home.
Our model is built around the operational realities of corporate mobility: flexible tenures, short notice availability, consistent standards across every placement, and a service that reduces administrative burden rather than adding to it.
For HR and procurement leads reviewing a mobility programme, the benchmark should include:
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Self-contained and residential
An employee in their own apartment, with a kitchen, living space and front door, is in a materially different position to one placed in a hotel room. For employees arriving with a partner or children, self-containment is a minimum requirement.
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A stable base from which to search
Quality settling-in accommodation gives the employee a secure, comfortable base from which to conduct a considered search for a permanent home, reducing the risk of a rushed decision and a second disruptive move within the year.
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Consistent quality
For teams managing mobility at scale, consistency matters as much as quality. Inconsistency generates complaints, creates perceived inequity and introduces unpredictability into a programme that depends on operational reliability.
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Flexible
Settling-in periods vary. Some employees find permanent accommodation within three weeks; others need three months. A provider whose tenure model cannot flex around those realities will create pressure on HR teams to manage exceptions.
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Minimal administrative overhead
The right settling-in provider should function as a reliable programme component, not a source of ongoing management.
Contact us
Whether you are managing a single hire, a cohort relocation or an ongoing mobility programme, we would welcome the opportunity to understand your current approach and explore how TheSquare can support it.
You can email us at stay@thesqua.re
