Often in the news is London's housing bubble and increasing property prices, but it is important to remember that there is a growing concern about the number of offices being turned into luxury apartments and a resulting decrease in office space. In the current economic climate, with rising rents and property prices, residential property is more valuable and this is a factor resulting in a lack of office space. Many experts are questioning the decision to ease the planning laws which now allow conversion of office space into residential property.
The amount of office space in central London has plunged by almost 50 per cent since its peak in 2009, reigniting concerns over the amount of offices being turned into homes. New figures from Deloitte Real Estate show that the amount of available office space has tumbled from 24.4 million sq ft in 2009 to 12.7 million sq ft at the end of last year. Over the past year it has fallen by 14 per cent.