Most organisations now think they reduced their office space too much in the wake of the pandemic

Most UK businesses now believe they got their office space strategies wrong in the wake of the pandemic. According to The Office Occupiers Report 2025 from Irwin Mitchell nearly two-thirds of the organisations surveyed now believe they may have downsized their office space too much over the past few years. Consequently, 45 percent are planning to expand their office footprint within the next 12 to 18 months, compared to just 10 percent considering further reductions.

Among those intending to expand, nearly half (49 percent) plan to reconfigure their existing premises rather than relocate, while 23 percent are contemplating moves to new locations. Additionally, 44 percent are exploring the incorporation of flexible workspace options into their property portfolios to better accommodate evolving operational needs.

The survey also highlights a resurgence in office attendance. Over the past year, 72 percent of employers have observed an increase in employees working from the office, with 74 percent anticipating further growth in the next 12 to 18 months. This trend is particularly pronounced in London, where 81 percent of businesses expect higher in-office numbers.

In response to these shifts, many companies are reassessing their office layouts and capacities. Only 33.5 percent of respondents believe their current spaces can accommodate all staff simultaneously, while 53 percent acknowledge that their existing setups would be insufficient if all employees returned to the office. This has prompted a re-evaluation of both the type and amount of space required moving forward.

Rising costs are the main concern for businesses, who seek greater productivity from their office and staff. When asked about the main threats looming over the next 12 months, 43 percent of businesses cited rising inflation and higher interest rates – factors that increase the cost of borrowing. Other concerns include escalated employment costs and risks (30 percent), adverse tax policies (26 percent), and mounting property costs covering energy, rent, business rates, insurance, and service charges (21 percent).

In response to this challenging economic backdrop, companies appear to be “doubling down on efforts to boost productivity by maximising the functionality of their office spaces and encouraging face-to-face collaboration”. Most (80 percent) businesses indicated that they are either currently monitoring individual office attendance or are planning to do so, underscoring the importance of data-driven space planning and the capability to be aware of what employees are doing.