Shift towards regional bases near to where companies’ workers live
Birmingham is among the UK cities seeing a marked shift towards premium Grade-A office space, analysis from office rental agency FreeOfficeFinder has revealed.
Demand for premium office space has doubled in Birmingham to 55 per cent of enquiries.
This relfects a national shift towards office locations near where employees live, as opposed to London hubs.
The findings highlight broader changes across the UK, with Cambridge leading private office rents at £611 per desk per month in Q4 of 2025, up 13 per cent year-on-year and more than double the level a decade ago.
Milton Keynes posted the strongest growth, with private rents rising 20 per cent to £296 and coworking desks jumping 39 per cent to £283.
London saw a 2 per cent fall in both private office and coworking desk prices.
Demand for office space in smaller centres around the UK
Interest in managed and serviced offices has risen sharply in regional areas, up 32 per cent in Yorkshire, 34 per cent in Scotland and 38 per cent in the North West since 2019.
Nick Riesel, managing director and founder of FreeOfficeFinder, said: “Our data shows that the UK office market is evolving rapidly.
“While Cambridge remains the priciest market for private offices, smaller cities such as Milton Keynes, Liverpool, and St Albans are emerging as hotspots for coworking and flexible workspace.
“This reflects the growing demand for high-spec, well-connected offices closer to where employees live, as hybrid working becomes the norm and businesses seek flexibility, cost-efficiency, and collaborative environments.
“Companies are no longer tied to historic office hubs – the market is decentralising, and regional cities are benefiting from both long-term growth and record annual rental increases.”
Declines in demand in Edinburgh, Manchester and Leeds
The report notes that Oxford, Bristol and Reading also recorded strong private rent growth, while cities including Edinburgh, Manchester and Leeds saw declines.
