Carl Pei, CEO of smartphone firm Nothing, informed staff that from October, they would need to be back in the office five days a week. Pei acknowledged the decision might not suit everyone, stating, "This is a company for grownups, so if you need to be out of the office to deal with some issues, we trust you to make the right decision."

Amazon has announced similar plans, while companies like Boots and PwC are also increasing office-based requirements for their employees.

Property Sector Faces Challenges but Sees Opportunities

The shift back to the office comes after a challenging period for the UK office property market. Office valuations have declined by 20% in London and 23% across the wider UK between mid-2022 and mid-2024, driven by uncertainty over future demand for office space and rising interest rates.

Canary Wharf, once a premium office location, has particularly felt the impact. HSBC is planning to vacate its headquarters there by 2026, and Canary Wharf's debt was recently downgraded to junk status. However, property experts believe that renewed demand for high-quality office spaces, especially in central locations like Bond Street and Farringdon, offers hope for recovery.

Hybrid Working Still Popular but Office Demand Persists

While hybrid working remains popular, with London workers averaging 2.7 days in the office each week, there is optimism within the property sector. A KPMG study found that 83% of UK CEOs expect a return to pre-pandemic working patterns within three years, and over 80% are likely to reward employees for coming into the office.

Property developers are responding by adapting office spaces to include amenities such as roof terraces and event areas, aiming to attract workers back. Canary Wharf, for example, has diversified into residential and mixed-use spaces and is also focusing on attracting life sciences and education sector tenants.

Despite the changes, demand for prime office space remains robust, with new developments around Elizabeth Line stations recording record rents. Experts believe the office market is nearing a turning point as more businesses enforce office-based working.

Outlook for the Future

While the future of office work remains uncertain, many in the property sector are cautiously optimistic. "There may be an extra push for four days [in the office], but I don’t think we will go back to five," said Oliver du Sautoy, senior director at Lambert Smith Hampton. With signs of stabilisation, the sector hopes that a balance between hybrid and office-based working will sustain demand for office properties in the long term.

‍