Cost of Covid on serviced offices exposed as the price to rent office space in London FALLS 12 per cent in five years since lockdown

The impact of the Covid lockdown has taken a huge toll on the flexible office industry - with the cost of renting a desk in London becoming 12 per cent cheaper than pre-lockdown.

This week sparks the fifth anniversary of the UK being ordered to work from home, leading to a dramatic change in working habits across the country.

Now data released by UK flexible office specialists Office Freedom has shown just how much the market has been impacted - with the monthly cost of renting a desk in the capital now 12 per less than it was before lockdown.

While overall inflation since 2020 has an average price rise of 21.5%, Office Freedom’s own data shows that to work in an office is now 11.99% cheaper than before the big close-down.

And in the popular districts of Kensington and Paddington, it is now a third cheaper to secure a desk than it was before Boris Johnson ordered the nation to stay at home.

The office industry has seen a dramatic shift since coronavirus made it normal for staff to work remotely, and only now are businesses starting to order their staff to return to in-office work on a more regular basis.

The City of London had cost an average of £625-per-person/desk a month at the start of 2020 - but now the same would set you back £504 (-19.36%).

Just four of the 16 districts around London that Office Freedom serve cost more than pre-covid, with the St James’s area around Parliament the most expensive at £950 a month (+16.56%).

The once-vibrant Soho is a shadow of its former self, and prices have tumbled 27.24% to £513-a-month - and the purpose-built commercial district around Canary Wharf is now London’s cheapest place to rent at £411 a month.

Office Freedom spokesperson Richard Smith said: “Without a doubt, the lockdown of five years ago affected the office and workspace industry as much as any other. What followed was a huge change in working habits for employees. Covid resulted in increased flexibility in the office market and flexible lease options have forced serviced operators to keep their pricing competitive, despite rising operational costs.”

“Coupled with the growing number of flexible working spaces around London, this has seen this particular sector buck the inflation trend felt elsewhere. There are some hot areas to work where prices are on the up, but overall the data speaks for itself and is evidence of the shift felt across the office property landscape five years after lockdown.”

Average Office Rental costs in London pre-lockdown/present day

*Cost per person/desk per month