New analysis from office rental agency FreeOfficeFinder points to a rapidly decentralising UK office market, with sharp growth in regional cities reshaping both private and coworking demand.
Cambridge now leads the UK for private office rents, with the average desk costing £611 per month in the final quarter of 2025, up 13% year-on-year and more than double the level seen a decade ago.
According to FreeOfficeFinder, the city’s position is being reinforced by sustained demand from the technology and life sciences sectors, which continue to favour premium, centrally located office space.
Elsewhere, Milton Keynes has emerged as one of the strongest performers across both private and coworking markets. Average private office desk rents rose 20% over the past year to £296 per month, while coworking desk prices jumped 39% to £283 per month, representing the fastest rate of growth of any UK city.
FreeOfficeFinder said this reflects the city’s appeal as a strategically located business hub, supported by strong road links, fast rail connections to London and access to broad regional talent pools.
While London remains the most expensive coworking market at £289 per desk, prices in the capital fell by 2% over the year, as momentum shifts towards regional office markets.
Liverpool has also seen a sharp transformation in its coworking sector. Desk prices rose 29% over the past 12 months to £213 per month, up 37% since pre-pandemic levels and 52% higher than a decade ago.
Despite this growth, the city remains outside the UK’s 10 most expensive private office markets and continues to offer lower costs than nearby Manchester, where private rents fell 11% to £325, and other northern centres such as Leeds at £393.
Smaller cities are increasingly driving the UK’s coworking boom. Over the past decade, desk prices have risen 101% in St Albans, 76% in Aberdeen, 75% in Reading and 70% in Watford.
FreeOfficeFinder said this reflects hybrid-working patterns, with firms in sectors such as technology, energy and professional services seeking workspace closer to where employees live.
In the private office market, Oxford recorded a 16% annual increase to £401 per desk, while Bristol rose 14% to £347 and Reading increased 13% to £335.
By contrast, Edinburgh saw an 11% fall in private office pricing over the past year, with Manchester down 7% and Leeds down 4%. On the coworking side, Basingstoke experienced a 17% drop in average desk prices.
London, meanwhile, recorded a rare 2% decline in private office desk rents to £583, marking the first notable fall in recent years. Enquiry patterns suggest a shift in occupier priorities, with 65% of requests in the third quarter of 2025 focused on Grade-A space, compared with 35% in 2019.
Smaller offices are also in demand, with 72% of enquiries for space under 5,000 sq ft.
FreeOfficeFinder reported a 40% rise in demand for managed and serviced offices in the capital over the same period, alongside a decline in interest in traditional leased space.
Similar trends are emerging across the regions, with demand for Grade-A offices rising to 55% of enquiries in Birmingham, 60% in Yorkshire, 58% in the North West and 57% in Scotland.
Smaller offices under 5,000 sq ft are also becoming more popular outside London. They now account for 68% of enquiries in Yorkshire, 66% in the North West, 64% in Birmingham and 62% across Scottish cities including Edinburgh and Glasgow.
Demand for managed and serviced offices continues to rise, reflecting occupiers’ desire for flexibility and cost certainty. Since 2019, interest in these spaces has increased 38% in the North West, 34% in Scotland and 32% in Yorkshire, pointing to a broader shift away from long-term lease commitments.
Nick Riesel, managing director and founder of FreeOfficeFinder, said: “Our data shows that the UK office market is evolving rapidly. While Cambridge remains the priciest market for private offices, smaller cities such as Milton Keynes, Liverpool and St Albans are emerging as hotspots for coworking and flexible workspace.
“This reflects the growing demand for high-spec, well-connected offices closer to where employees live, as hybrid working becomes the norm and businesses seek flexibility, cost efficiency and collaborative environments.
“Companies are no longer tied to historic office hubs – the market is decentralising, and regional cities are benefiting from both long-term growth and record annual rental increases.”
