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The recession has not spared the office market in London, which is in fact amongst one of the hardest hit. The soaring rents charged in the previous years have made the current situation look even worse for the landowners. Some of the landowners have been reported to be giving a year or more free to clients in return for a five year lease.

In general, a huge proportion of office space is controlled and leased out by financial companies in London, and as they are bearing the brunt of recession, the impact is also being felt in the office space market.

This year, the first quarter saw a substantial decline in rents to the extent of 20%. Space in use saw a decline of 56% from the previous quarter, and a decline of 70% as compared to the same quarter last year.

On an average, office rents in the UK have witnessed a decline of 14.9% in the last one year. The retails rents have seen a decline of 13% as the businesses suffering from credit shortage and falling revenues try to cut expenditures.

A lower fall has been reported in the North West, where rents have fallen by about 4%. This has been attributed to the excessive supply in that region. However, regions like Wales, Scotland, and the East Midlands reported a growth in the last twelve months, albeit a small one. Especially well located areas, such as Brighton are faring well in terms of maintaining rents and occupied office space (more info on desk space Brighton).

The rents are also increasing in West End and South East. This is probably due to fall in the value of the pound against both the dollar and the euro. Moreover, the strategically important central London location of West End is a big attraction for multinational companies.

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