UK Co-Working Office Spaces Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)

The United Kingdom Co-Working Office Space Market Report is Segmented by Type (flexible Managed Office, Serviced Office), Application (Information Technology (IT and ITES), Legal Services, BFSI (banking, Financial Services, and Insurance), Consulting, and Other Applications), and End-User (personal User, Small-Scale Company, Large-Scale Company, Etc. ). for Each Segment, Market Sizing and Forecasts Have Been Done Based On Value (USD).

UK Co-Working Office Spaces Market Size

UK Co-Working Office Spaces Market Summary
Study Period 2019-2029
Base Year For Estimation 2023
Market Size (2024) USD 1.34 Billion
Market Size (2029) USD 1.9 Billion
CAGR (2024 - 2029) 7.11 %
Market Concentration Low

Major Players

UK Co-Working Office Spaces Market Major Players

*Disclaimer: Major Players sorted in no particular order


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UK Co-Working Office Spaces Market Analysis

The UK Co-Working Office Spaces Market size is estimated at USD 1.34 billion in 2024, and is expected to reach USD 1.9 billion by 2029, growing at a CAGR of 7.11% during the forecast period (2024-2029).

With the restrictions on office-based working due to COVID-19, businesses rethought the space they needed. COVID-19 also prompted businesses to rethink their working practices, with nearly half of UK enterprises with office space planning to shrink their estates within the next five years.

The freedom afforded by working from home, according to the research of 1,000 business leaders, is set to permanently alter the way they work. Nearly half of the enterprises with office space (45 percent) plan to downsize by the end of 2025 and one in seven (18 percent) have already done so since the pandemic began. According to the study, about 18 million square feet of office space will become obsolete in the next five years, accounting for 18 percent of all currently occupied square footage, having a significant impact on the way UK cities appear and feel.

UK businesses will also be looking for shorter, flexible leases – as well as utilizing co-working spaces such as WeWork, with 12 percent intending to use these locations more often instead of an ‘owned’ office. And for those businesses planning to stick to the office, 13 percent will look for accommodation that has less desk space per head as the office’s main function is set to shift with more space for collaboration, such as break-out areas and meeting rooms.

The changing consumer preferences, which were again highly boosted by the recent pandemic, are expected to boost the co-working office spaces market in the United Kingdom.

UK Co-Working Office Spaces Market Trends

Demand of Co-working Office Space in London Driving the Market

Demand for co-working spaces in London is high and continues to grow. According to industry sources, the UK flex market grew by 22% in 2022, with London seeing strong demand in areas such as Southwark and the financial district.

London is home to over 1,300 co-working spaces, making it the city with the most coworking spaces in the world. The average cost of a coworking space in London is around EUR 400 (USD 431) per month. Coworking spaces in London are popular with a wide range of businesses, including start-ups, freelancers, small businesses, and large corporations. WeWork, the world's largest coworking space company, is set to open a new space in One POultry, a postmodern icon in the heart of London's City district. The open space is expected to open in early 2024 and will offer flexible workspace options for businesses of all sizes.

In a post-pandemic war for talent, firms demand excellent offices, with Grade A space accounting for 90% of take-up in London. The volume of new development coming through will be suited to this quest for best-in-class, and rents on prime space will continue to rise due to competitive tensions between enterprises.

According to the vast majority of UK real estate professionals surveyed in 2022, offering flexible workspaces as part of office real estate is overall positive. According to 25 percent, flex space is important or very important, while 32 percent said it is nice to have. Flexible office space refers to office space that allows short-term leases to individuals, freelancers, small and medium enterprises, and other professionals. In contrast to traditional offices, flexible offices provide equipped and serviced office premises without long-term rent commitment. The majority of office real estate professionals also shared that demand for more flexible leasing will likely increase in the future.

UK Co-Working Office Spaces Market: Importance Of Flexible Workspaces As Part Of Office Real Estate, In %, United Kingdom, 2022

Pandemic Boosting Demand for Co-Working Space

Flexibility is essential in times of uncertainty. In fact, 47% of UK businesses stated they expected their real estate strategies to incorporate more flexible, serviced, or coworking spaces in the future. The attractiveness of being able to walk into a fully functional office, the flexibility to reduce and enlarge space based on headcount, budget properly with an all-inclusive fee, and stay flexible with a monthly rolling contract was magnified by global uncertainty.

In fact, Covid-19 amplified market tendencies that were already evident. Prior to the lockout, there was an increase in demand for flexible office space, and it wasn't just from startups and high-growth companies. Even larger, more established companies began to take a 'core and flex' strategy to real estate, with serviced and coworking providers handling the flex. Flexible office solutions will become increasingly appealing as businesses discover the perfect balance and blend of office space – which will take time – allowing firms to modify their requirements as their strategy evolves.

In 2022, 46 percent of surveyed office landlords, fund/asset managers, REITs, and private owners in the United Kingdom (UK) were open to the idea of receiving rent from flexible workspace operators based on their profit or revenue. Flexible office space refers to office space that allows short-term leases to individuals, freelancers, small and medium enterprises, and other professionals. In contrast to traditional offices, flexible offices provide equipped and serviced office premises without long-term rent commitment. Half of the respondents also shared that they would be comfortable with letting between 10 and 25 percent of a building as flex space.

Since many tech enterprises require more than just office space, London and Manchester, as the UK's top innovation centers, are projected to witness a surge in flexible co-working spaces. Many people are looking for features and local amenities that will help foster innovation and creativity while also improving employees' working lives.

UK Co-Working Office Spaces Market: Office Landlords' Opinion on Receiving Rent from Flexible Office Operators Based on Revenue or Profit ,  In %, United Kingdom, 2022

UK Co-Working Office Spaces Industry Overview

The United Kingdom's co-working spaces market is fragmented, with a lot of companies in the industry. The developers are trying to bring new and lower-cost products to meet the current demand. Evolving technological advancements such as new proptech solutions are driving the market in terms of increased transactions and better management of real estate services. Some of the major players in the United Kingdom are Work Well Offices, Labs, The Brew, Huckle Tree, Jactin House, etc.

UK Co-Working Office Spaces Market Leaders

  1. Work Well Offices

  2. Labs

  3. The Brew

  4. Huckle Tree

  5. Jactin House

*Disclaimer: Major Players sorted in no particular order

UK Co-Working Office Spaces Market Concentration
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UK Co-Working Office Spaces Market News

  • July 2023: WeWork, the leading global flexible space provider, today announced a franchise partnership with Garnier & Garnier, one of Costa Rica’s best-known and most reputable real estate development companies, giving Garnier the exclusive right to grow and operate WeWork’s existing locations in Costa Rica.
  • January 2023: Liquid Space is building a Cultural community in a hybrid workplace, with Okta leading their transition to a hybrid workplace model to offer equitability of workspaces to all employees, regardless of where they are based. Okta has recently moved to a dynamic work model that involves elements of hybrid work but, more importantly, puts its employees at the heart of this program.

UK Co-Working Office SpacesMarket Report - Table of Contents

  1. 1. Introduction

    1. 1.1 Study Assumptions

    2. 1.2 Scope of the Study

  2. 2. Research Methodology

  3. 3. Executive Summary

  4. 4. Market Insights

    1. 4.1 Market Overview

    2. 4.2 Market Dynamics

      1. 4.2.1 Drivers

      2. 4.2.2 Restraints

      3. 4.2.3 Opportunities

    3. 4.3 Technological Trends

    4. 4.4 Industry Value Chain Analysis

    5. 4.5 Government Regulations and Initiatives

    6. 4.6 Insights on Co-working Startups in the UK

    7. 4.7 Industry Attractiveness - Porter's Five Forces Analysis

      1. 4.7.1 Bargaining Power of Suppliers

      2. 4.7.2 Bargaining Power of Buyers/consumers

      3. 4.7.3 Threat of New Entrants

      4. 4.7.4 Threat of Substitutes

      5. 4.7.5 Intensity of Competitive Rivalry

    8. 4.8 Impact of COVID-19

  5. 5. Market Segmentation

    1. 5.1 By End User

      1. 5.1.1 Personal User

      2. 5.1.2 Small Scale Company

      3. 5.1.3 Large SCALE Company

      4. 5.1.4 Other End Users

    2. 5.2 By Geography

      1. 5.2.1 London

      2. 5.2.2 Manchester

      3. 5.2.3 Birmingham

      4. 5.2.4 Leeds

      5. 5.2.5 Other UK cities

    3. 5.3 By Type

      1. 5.3.1 Flexible Managed Office

      2. 5.3.2 Serviced Office

    4. 5.4 By Application

      1. 5.4.1 Information Technology (IT and ITES)

      2. 5.4.2 Legal Services

      3. 5.4.3 BFSI (Banking, Financial Services, and Insurance)

      4. 5.4.4 Consulting

      5. 5.4.5 Other Applications

  6. 6. Competitive Landscape

    1. 6.1 Market Concentration Overview

    2. 6.2 Company Profiles

      1. 6.2.1 Work Well Offices

      2. 6.2.2 Labs

      3. 6.2.3 The Brew

      4. 6.2.4 Huckle Tree

      5. 6.2.5 Jactin House

      6. 6.2.6 The Skiff

      7. 6.2.7 Icon Offices

      8. 6.2.8 Wimbletech CIC

      9. 6.2.9 Regus

      10. 6.2.10 Creative Works

      11. 6.2.11 The Office Group

      12. 6.2.12 Foyles

      13. 6.2.13 Soho Works

      14. 6.2.14 The Hoxton

      15. 6.2.15 Mare Street Market

      16. 6.2.16 Southbank Centre*

    3. *List Not Exhaustive
  7. 7. Future Outlook Of The Market

  8. 8. Appendix

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UK Co-Working Office Spaces Industry Segmentation

Coworking spaces refer to working arrangements in which people from different teams and companies come together to work in a single shared space. A coworking space is characterized by shared facilities, services, and tools. Sharing infrastructure in this way helps spread the cost of running an office across members. Co-working space companies in the United Kingdom generate revenue, as indicated by the size of the co-working space market.

The report covers a complete background analysis of the United Kingdom co-working spaces market, which includes an assessment of the sector and its contribution to the economy, a market overview, market size estimation for key segments, key developments, and emerging trends in the market segments, market dynamics, and key statistics. The report also covers the impact of COVID-19 on the market.

The United Kingdom co-working office space market is segmented by type (flexible managed office, serviced office), application (information technology (IT and ITES), legal services, BFSI (banking, financial services, and insurance), consulting, and other services), and end-user (personal user, small scale company, large scale company, and other end-users).

The report offers market size and forecasts for the United Kingdom co-working office spaces market in value (USD) for all the above segments.

By End User
Personal User
Small Scale Company
Large SCALE Company
Other End Users
By Geography
Other UK cities
By Type
Flexible Managed Office
Serviced Office
By Application
Information Technology (IT and ITES)
Legal Services
BFSI (Banking, Financial Services, and Insurance)
Other Applications
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UK Co-Working Office SpacesMarket Research FAQs

The UK Co-Working Office Spaces Market size is expected to reach USD 1.34 billion in 2024 and grow at a CAGR of 7.11% to reach USD 1.9 billion by 2029.

In 2024, the UK Co-Working Office Spaces Market size is expected to reach USD 1.34 billion.

Work Well Offices, Labs, The Brew, Huckle Tree and Jactin House are the major companies operating in the UK Co-Working Office Spaces Market.

In 2023, the UK Co-Working Office Spaces Market size was estimated at USD 1.24 billion. The report covers the UK Co-Working Office Spaces Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the UK Co-Working Office Spaces Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.

UK Co-Working Office SpacesIndustry Report

Statistics for the 2024 UK Co-Working Office Spaces market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. UK Co-Working Office Spaces analysis includes a market forecast outlook for 2024 to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.

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UK Co-Working Office Spaces Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)