UK Landlords Turn to Offices in 2025

Quick Facts

Recent research from Shawbrook shows professional landlords are stepping up investment in office space.

• Landlord-led applications for UK office projects surged 44% in H1 2025.
• South West saw a remarkable 233% increase; West Midlands close behind at 225%.
• London, Wales: applications doubled (100% rise).
• Yorkshire & Humber up 83%; South East up 50%.
• East Anglia down 60%; East Midlands fell 20%; Scotland declined 14%.
• Buy-to-let mortgage rates remain above 5.3%, squeezing residential margins.

The UK’s commercial property landscape is evolving as professional landlords shift their focus away from residential investments and toward the potential of office space. 2025 has seen record surges in office project applications, as a result of evolving workplace culture, persistent regulatory pressures, and the search for more resilient returns.

UK Landlords Shift Focus: Adapting to Market Change

Professional UK landlords are shifting their investment strategies from residential property to office space. The first half of 2025 saw a dramatic 44% rise in applications for office-led developments, as hybrid work trends evolve and regulatory changes weigh on traditional buy-to-let models.

Driving this pivot are persistent regulatory pressures in the buy-to-let sector, elevated mortgage rates, and evolving tenant expectations in both residential and commercial property. As Daryl Norkett, Director of Real Estate Proposition at Shawbrook, explains:

“Diversification has been the theme of the past couple of years for professional landlords, who continue to demonstrate agility and adaptability in the face of ongoing market and economic challenges.”

Increasingly, leases are shorter and more adaptable, helping landlords achieve greater income stability as businesses adjust their footprints to meet evolving needs. For practical strategies to maximise occupancy as office demand rises, see Office Space Marketing in 2025.

Regional Standouts and Market Pulse

Sectors in the South West and West Midlands demonstrated the greatest appetite for office investment, with triple-digit per cent increases in new applications. London and Wales are experiencing renewed momentum, each with a 100% increase in landlord-led applications for office projects. Investors are also active in Yorkshire and the Humber, and the South East, showing significant demand uplift. However, investor activity isn’t uniform nationwide. East Anglia, East Midlands, and Scotland posted marked declines in application volumes, reflecting ongoing regional rebalancing.

For more on the surge in serviced office demand, see UK Flexible Office Market Sees Highest Take-Up Since 2019.

Strategic Recommendations

Landlords aiming for sustainable growth should:

• Prioritise quality office upgrades over residential conversions for better yield and resilience.
• Tap into rising demand by targeting the most dynamic UK regions: South West, West Midlands, and Welsh markets.
• Engage specialist brokers to navigate evolving regulation and unlock new asset classes.
• Leverage technology and flexible space concepts to meet modern business needs.

Office investment is now a top portfolio strategy as the sector enters a new phase of opportunity, with landlords encouraged to adjust asset mixes to capture growth, ensure yield protection and safeguard value in a dynamic market.

Key Takeaway

The UK office property sector is now at the centre of landlord strategy, fuelled by hybrid working culture, regulatory changes, and the pursuit of more stable returns. As demand for premium, flexible, and amenity-rich office space accelerates across leading regions, office investment has emerged as a compelling alternative to residential portfolios. Landlords who adapt, invest in quality, and anticipate evolving tenant needs are best positioned to achieve future growth in this evolving market.

For more on the topics covered in this article, exploring the following: London Office Space Costs in 2025 and Reclaiming Office Potential: The Role of Development Finance in Reviving London’s Aging Stock .