UK Flex Market Booms as Supply Increases by 32% Year-on-Year

Wednesday, 21st May 2025 | Press

London, UK, 21 May: New figures from Rubberdesk reveal a surge in availability of flexible space in the UK year-on-year (YOY) of 32%. The online marketplace for flexible office space analysed data from the first quarter of the year, finding that over 8.6 million sq ft of space is currently available. The figures also show a quarter-over-quarter (QoQ) increase of 8.1%.

An increased supply has led to a national media desk rate decrease of 1.2% QoQ, as it now sits at £500 per desk. However, the national rate was also up 2.2% YoY, reflecting a resilience in the labour market and growing real wages. All analysis for its new report - UK Flexible Office Space Report - Q1, 2025 - is drawn using data from the Rubberdesk platform, which currently showcases more than 7,600 offices across the UK.

The rise of managed offices

The report also reveals that the rise of managed offices (self-contained offices with private facilities that don’t share the same communal areas as serviced offices) in the market is contributing to the boom – most significantly in London. The capital boasts 75% of the country's total flexible office space, and is the most mature market, often being the first to display trends that are then mirrored around the world.

Managed office space availability grew by a sizeable 111% YoY, as well as 10.6% QoQ, outpacing serviced office space growth, which sat at 6.1%. This correlates with increased demand experienced by Rubberdesk, which has recently added a specific “managed offices” category onto its platform.

“This surge in managed offices supply reflects a dual dynamic,” comments Tom Petryshen, head of growth and analytics at Rubberdesk. “Firstly, tenant demand for customised, private flexible solutions is strong, particularly from larger enterprises navigating economic uncertainty and hybrid work models.

“Secondly, landlords are also actively contributing to this supply increase. Facing reduced demand for traditional 5–10-year leases, property owners are increasingly adopting managed solutions to meet evolving occupier needs and maintain occupancy.”

A varied picture across the UK

The report shows clear differences by region in the first quarter, ranging from desk rate stability and available space increases in London, to strong desk rate growth and falling availability in Birmingham. Key highlights include:

London, dominating the market, saw desk rates remain stable QoQ (£625) but experienced a significant +7.7% QoQ and +39.0% YoY increase in available space.

• Manchester (at £379) saw modest rate growth (+1.1% QoQ, +5.3% YoY) alongside rising availability (+12.1% QoQ, +17.7% YoY).
• Birmingham stood out with strong desk rate growth (+5.7% QoQ, +23.3% YoY to £370), contrasting with falling availability (-0.2% QoQ, -21.2% YoY).
• Bristol rates were stable QoQ (£365) but availability decreased (-7.0% QoQ).
• Leeds (£322 per desk) saw a minor rate dip QoQ (-0.9%) despite a large space increase (+11.0% QoQ).
• Cardiff experienced a sharp rate decline (-11.0% QoQ, -20.9% YoY to £178) with stable availability.

Regional differences provide an interesting and varied picture. Within the largest market, London, there are marked differences by area, with central London showing a significant space increase (of 27.1% QoQ) alongside a rate decrease. South London showed increases in both space and rates, whereas East and West London show rates holding steady even in the face of an increase in space. Outside of the capital, Birmingham showed strong desk rate growth alongside less availability, Manchester showed rate growth an availability rising whereas Cardiff showed the sharpest rate decline, at -11% QoQ.

Constantly evolving its platform to suit the market, earlier this year Rubberdesk launched a proprietary office search technology utilising AI to streamline initial office queries to just 20 seconds. The proptech tool delivers a shortlist that includes live availability, transparent pricing, and key office details—eliminating guesswork. The tool has proved popular and has led to an increase in searches on the site.