UK Office Space News

The office space market in the UK will experience a substantial divide this year, with prices rising in London but stalling in the rest of the UK. Rents in prime parts of the City are scheduled to rise to 10.5pc and 7.6pc in the West End. But there is a massive mountain to climb in terms of how far rents have fallen, around 40%.

But outside of the capital in principal UK cities such as Leeds and Birmingham rents are likely to fall. This is due to oversupply and the public sector reigning back on workspace requirements. Mark Bourne who runs King Sturge said rents outside of London fell by 10% last year. The London office market will be aided by demand from financial companies. Another good sign for agents will be a shrinking of rent free periods in the city, currently averaging at 3 years on a ten year lease, this should fall to two years.