Renting an office space in the UK was the most expensive in London West End in 2025. In the first quarter of the year, the square foot cost of a prime office space cost 170 British pounds. Conversely, Belfast was the most affordable of the 18 markets ranked, at 26 British pounds per square foot.

This Statistic shows the average cost of grade A and grade B office rents in the North of England (United Kingdom) per square foot in 2019. The North of England for this purpose includes the North West, Yorkshire and the Humber and the North East regions. In the North of England, prime rents for office space fluctuate depending on their location. In 2019, the cost of grade A office property was the most expensive in Manchester at 37.5 British pounds per square foot and 28.5 British pounds for grade B. The cheapest average office rents in the North of England could be found in Preston.

The cost of rent for office space in London is the highest in Europe. In the fourth quarter of 2023, the West End had average rents per square foot of *** British pounds. The average annual rent in London for prime office space was substantially higher than in any other European market. Prime yields For commercial real estate investors, prime yields in London averaged **** percent in 2023. As compared to the rest of the United Kingdom, yields for prime office space in London were notably lower. Commercial investments Office real estate, which comes under the broader term of commercial real estate, traditionally accounts for the lion's share of commercial real estate investments. In recent years, however, this share has been gradually declining. Despite this trend, the UK is one of the leading office real estate investment markets in Europe.

London is the most expensive city for office real estate in Europe. In 2023, the per square foot cost of office space in London was higher than in any other European city. In West End, a Grade A office cost about 90 British pounds per square foot in 2023. Prime offices were even more expensive, at 135 British pounds per square meter. Office yields Prime yields in Central London fluctuate depending on the district, but West End areas tend to have lower yields compared to other areas, such as Stratford or Canary Wharf. The prime office yield in Mayfair/St. James' in 2023 was the lowest among the major London office submarkets. In real estate, yields measure the potential return of a rental property and are calculated as the ratio of the property's rental income to the investment cost. Typically, prime office yields in London are lower than the rest of the UK, which is mostly due to the highly competitive market and high investment costs. Vacancy rates Despite the high office rental costs in England’s capital city, vacancy rates in many of London's main office markets were below seven percent in 2023. This is good news for the office sector, as during the coronavirus (COVID-19) pandemic, the share of vacant office space across all Central London districts spiked dramatically. Compared to other European cities, London was in the middle of the ranking, alongside Frankfurt and Lisbon.

Median monthly rental prices for the private rental market in England by bedroom category, region and administrative area, calculated using data from the Valuation Office Agency and Office for National Statistics.

This Statistic shows the average cost of grade A and grade B office rents in the Midlands in England (United Kingdom) per square foot. In the Midlands, prime rents for office space fluctuate depending on their location. In 2019, the cost of grade A office property in Birmingham was 34 British pounds per square foot and 23.5 British pounds for grade B. The cheapest average office rents in the Midlands could be found in Stafford and Telford.

Rental price statistics historical data time series (indices and annual percentage change). These are official statistics in development.

This dataset is no longer being updated due to redevelopment of private rental prices statistics, impact analysis, UK, please see more information here: Redevelopment of private rental prices statistics, impact analysis, UK - Office for National Statistics (ons.gov.uk).

The Index of Private Housing Rental Prices (IPHRP) is a quarterly experimental price index. It tracks the prices paid for renting property from private landlords in Great Britain.

IPHRP is produced from a number of administrative sources and is classified as experimental by ONS.

The index compares trends (rather than levels) in average private sector rents across English regions, Wales and Scotland. It uses a complex mix-adjustment and weighting process to produce a single index for each area. This index uses data on actual new and ongoing rents.

The sample ensures that the index is representative of the stock at regional level and that it isn't distorted by units dropping out of the sample because they switch to LHA or for other reasons. This is an advantage over the VOA dataset where the sample is changing over time and may not be representative.

Tables show monthly data. Data is updated once a quarter.

Index level (January 2011 = 100). Not seasonally adjusted.

See more on the ONS Website

This Statistic shows the average cost of grade A and grade B office rents in Scotland (United Kingdom) per square foot in 2019. The most expensive area to rent Grade A office space in Scotland was seen in the capital, Edinburgh, with an average of 35 British pounds per square foot. Even Grade B property in Edinburgh was more expensive on average that prime real estate in Glasgow's out of town area.

In the South of England, prime rents for office space fluctuate depending on its location. This was especially present for areas surrounding London. In 2019, the cost of grade A office property was the most expensive in Windsor with 39.5 British pounds per square foot. The cheapest average office rents in the South of England could be found in Peterborough.

Compared to London, even the most expensive office rents for prime real estate were far less than the top of London. In 2019, the most expensive office rents were found in the West End of London.

United Kingdom Retail Price Index: Housing: Rent data was reported at 367.900 13Jan1987=100 in Jun 2018. This records an increase from the previous number of 367.600 13Jan1987=100 for May 2018. United Kingdom Retail Price Index: Housing: Rent data is updated monthly, averaging 253.200 13Jan1987=100 from Jan 1987 (Median) to Jun 2018, with 378 observations. The data reached an all-time high of 367.900 13Jan1987=100 in Jun 2018 and a record low of 100.000 13Jan1987=100 in Jan 1987. United Kingdom Retail Price Index: Housing: Rent data remains active status in CEIC and is reported by Office for National Statistics. The data is categorized under Global Database’s UK – Table UK.I011: Retail Price Index.

This statistic displays the average annual cost per square meter of prime office rents across select European countries as of 2019. The United Kingdom (UK) had the most expensive annual cost per square meter of office rent at over 1.3 thousand euros. France and Ireland completed the top three most expensive countries per square meter per year for prime office rent with 890 and 673 euros respectively.

In the first quarter of 2025, London West End - Bond Street was the most expensive location for prime high street rents in the UK, with prices reaching 2,500 British pounds per square foot. The West End was ranked ahead of London City, which came in third. In Manchester, the annual costs of rental per square foot of prime retail real estate amounted to 235 British pounds. Retail warehouses Retail warehouses typically range from 50,000 to hundreds of thousands of square feet. They are used for keeping and distributing inventory. Retail warehouses include loading docks, truck doors and large parking lots; also, they may contain a limited amount of office space. Prime retail warehouse properties belong to the wider category of industrial property, along with other real estate types, such as distribution buildings, showroom facilities, manufacturing buildings, cold storage facilities, telecom or data hosting centers, "flex" buildings denoting more than one industrial or commercial facility housed in the same building, and finally R&D buildings. Prime yields of high street retail across Europe Retail real estate prime yields in Europe were the lowest in Zurich, Switzerland, and the highest in Bucharest, Romania in 2025. As could be expected, larger cities in Europe tended to produce lower yields, due to the lower risk associated with these markets. Locations with lower yields tend to have steady occupancy rates and rental growth.

Affordability ratios calculated by dividing house prices by gross annual workplace-based earnings. Based on the median and lower quartiles of both house prices and earnings in England and Wales.

The prime rent for large warehouses over 100,000 square feet in the UK was 11 British pounds per square foot in 2023. However, in London, the South East, and East, rents were twice higher. Conversely, the North East was the region with the most affordable warehouse rent, with the prime rent per square foot amounting to 7.75 British pounds. What is the rental price for warehouses in Europe? The UK has some of the most expensive warehouse rents in Europe. Other key markets that fetched high prices were Oslo, Helsinki, Dublin, and Munich, with rents ranging between 100 and 200 euros per square meter. In Eastern Europe, prices were notably lower, with markets such as Katowice, Warsaw, and Bucharest, reporting rents below 60 euros per square meter. How are warehouse rents expected to develop in the next years? The industrial and logistics real estate sector has grown dramatically since the COVID-19 pandemic. Although growth is forecast to slow, rents in the sector are expected to continue to increase until 2025. Industrial real estate is anticipated to outperform offices and retail not only by rental growth but also in terms of capital value increase.

Rent Inflation in the United Kingdom decreased to 6.10 percent in May from 6.30 percent in April of 2025. This dataset includes a chart with historical data for the United Kingdom Rent Inflation.

Experimental analysis of private housing rental prices (proportion of properties and average percentage price increase).

The Direct Real Estate Activities industry have come up against numerous headwinds in recent years, ranging from the COVID-19 outbreak in 2020 to the rising base rate environment in the years since, which have inflated borrowing costs for potential buyers. This is a sharp contrast to the ultra-low interest environment seen over the decade following the 2008 financial crisis. Revenue is forecast to fall at a compound annual rate of 4.0% over the five years through 2024 to €588.2 billion, including an anticipated drop of 3.1% in 2024. However, profitability remains strong, with the average industry profit margin standing at an estimated 41.6% in 2024. Central banks across Europe adopted aggressive monetary policy in the two years through 2023 in an effort to curb spiralling inflation. This ratcheted up borrowing costs and hit the real estate sector. In the residential property market, mortgage rates picked up and hit housing transaction levels. However, the level of mortgage rate hikes has varied across Europe, with the UK experiencing the largest hike, meaning the dent to UK real estate demand was more pronounced. Commercial real estate has also struggled due to inflationary pressures, supply chain disruptions and rising rates. Alongside this, the market’s stock of office space isn’t able to satisfy business demand, with companies placing a greater emphasis on high-quality space and environmental impact – properties in many areas aren’t suitable due to their lack of green credentials. Revenue is slated to inch upwards at a compound annual rate of 3.1% over the five years through 2029 to €651.3 billion. Although economic conditions are set to improve in the short term, elevated mortgage rates will continue to weigh on demand for residential property. However, the warehousing market is positioned for solid growth, benefitting from the rise in e-commerce. This is particularly relevant to Poland, which leads the EU warehouse market.