News Release: UK office occupancy stabilises above 40% as sector divide widens

UK office occupancy has stabilised above the 40% mark, with late January recording a new high of 44.1%, according to the latest findings from Remit Consulting’s Return Report.

 
Although attendance eased to 42.2% during the February half-term week, overall trends point to sustained resilience across major regional markets. The week ending 30 January marked the highest occupancy level recorded by the survey to date. Remit says the consistency of performance across several cities is particularly notable.

 
Birmingham and Newcastle are now regularly reporting occupancy above 40%, while Glasgow, after several years of weaker performance, is edging back towards 30%.

Lorna Landells, Director at Remit Consulting, said: “Occupancy consistently above 40% is an important signal and suggests that office attendance is becoming more predictable, rather than continuing to fluctuate week by week. The regional picture is especially encouraging, with cities that previously lagged now showing firmer patterns of attendance.”

Alongside the steady rise in occupancy, Remit’s monthly report observes a growing divergence between sectors in their approach to office attendance.

Investment banks are leading a more assertive return-to-office push, with high-profile five-day mandates prompting resistance from parts of the workforce. Senior banking executives argue that the pace and risk profile of financial markets require in-person collaboration, while some employees maintain that hybrid working improves both productivity and family life.

The Return Report notes that banking’s firmer stance contrasts with other professional sectors that have retained hybrid models. Long lease commitments, significant capital invested in new headquarters and a deeply embedded office culture appear to be reinforcing the shift.

Landells commented: “What we are seeing is not a single return-to-office story, but sector-specific behaviour. Banking has always had a strong in-person culture, and that is now being reasserted. In other sectors, flexibility remains part of the operating model. For landlords and investors, that divergence is important as it suggests that demand patterns are no longer uniform.”
 

There are diverse views in the property sector regarding what constitutes maximum occupancy for offices, with some industry commentators suggesting that, due to holidays, external meetings, staff sickness and other operational issues, offices were only ever 60-80% ‘full’ before the pandemic.

 
Previous research from the BCO suggested a figure of 60%, while other market practitioners suggest a figure of between 70% and 80% at peak times in the calendar, although this will have varied widely according to individual buildings and businesses. The graph shows an adjusted figure to compare current figures with a possible pre-pandemic “80% average office occupancy”.