Landlords pivot to office investments as demand soars

The UK’s professional landlords appear to be making a pivot towards office space investments, with applications for office-related projects surging by 44% in the first six months of 2025.

That’s according to Shawbrook, which says that the South West is leading this shift, with an impressive 233% spike in landlord applications for office developments.

The West Midlands follows closely, recording a 225% increase.

London and Wales have both seen their application numbers double, each marking a 100% rise.

Professional landlords diversify

The lender’s director of real estate proposition, Daryl Norkett, said: “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.

“With Covid firmly in the rear-view mirror, businesses are adjusting to the new normal, which for many includes a return to office working – as evidenced by a 100% increase in applications for London office projects.”

He added: “As economic turbulence looks set to be on the cards for the foreseeable future, professional landlords should be looking to take advantage of increasing demand across different asset classes to maximise their yield and protect their business.”

Not everywhere booming

Shawbrook says that Yorkshire and the Humber reported an 83% uptick in landlord applications, while the South East noted a 50% growth.

However, not all regions are experiencing this property investment boom.

East Anglia has seen a 60% drop in applications, with the East Midlands and Scotland also facing reductions of 20% and 14%, respectively.