45% of UK Businesses look to expand their office space as hybrid working gains pace, while 64% of businesses admit they over-downsized due to the pandemic
More than four times as many UK businesses (45 per cent) are looking to expand their office space in the next 12 to 18 months rather than to reduce it (10 per cent) according to a new survey commissioned by law firm Irwin Mitchell Office Occupiers Survey 2025 – Office Occupiers Report 2025.
This shift comes as more workers return to the office to work, prompting many companies to reassess their current space allocations. 64 per cent of those surveyed admit they overshot their downsizing efforts during the Covid era.
Of those planning to expand, 49 per cent said they would do this by reconfiguring their existing premises rather than relocating to entirely new sites (23 per cent). And in a vote for flex, 44 per cent of respondents are considering incorporating flexible workspace options in their property portfolios – perhaps creating the “breathing space” needed as they adapt to evolving operational requirements.
Furthermore, organisations are capitalising on a marked shift in working habits. Over the past year, 72 per cent of employers have noted an increase in office attendance, with 74 per cent predicting further growth in the next 12 to 18 months. This trend is particularly pronounced in London, where 81 per cent of businesses expect higher in-office numbers, and in the Northwest, where 71 per cent forecast a similar rise.
The survey also reveals a decisive tilt towards more days expected in the office, reflecting a strong push for traditional office engagement following the pandemic.
Rising costs are the main concern for businesses who seek greater productivity from their office and staff. Other concerns include escalated employment costs and risks, adverse tax policies, and mounting property costs covering energy, rent, business rates, insurance, and service charges.
To entice employees back into the office, 46 per cent of businesses are integrating workplace environment and design into their broader strategies to attract and retain talent—and a further 35 per cent are considering doing so. A decisive 95 per cent have already involved HR teams in making decisions on working spaces, and 97 per cent are offering employee incentives.
Additionally, businesses acknowledge the importance of sustainability in their property strategies, but cost and return on investment remain primary drivers for making changes. Only one sixth of businesses said sustainability was not a priority.
Many businesses showed limited concern about government’s current EPC regulations, with a lot of office occupiers see EPC compliance as a landlord’s responsibility rather than their own. Despite these reservations, corporate engagement with environmental initiatives is growing. 85 per cent of businesses now report on their carbon emissions policies (Scope 1, 2 and 3), with 89 per cent voluntarily doing so.
Considering the overall results of the survey, Will Scott, Real Estates Disputes Partner at Irwin Mitchell said, “Our survey shows that the office and its place in the world of work continues to evolve, particularly as working patterns change. As rising costs and inflation impact corporate decision making and in line with the need to reduce unnecessary expenditure, businesses appreciate they need to improve the productivity of their current office space so that it can both accommodate increasing numbers of staff coming back in to work, but also one that can satisfy internal stakeholders’ needs and wishes.”
