Banks’ London office footprint shrinks after heavy job losses
Banks’ share of office space in London has shrunk by 13 per cent over the past decade as the industry struggles with heavy job losses in the wake of the financial crisis.
A study by accountants Deloitte shows that the financial sector remains the biggest occupier in central London despite upheaval in the industry since 2007, with a third of the office market.
Banks still make up the biggest proportion (54 per cent) of the financial sector. However, this has fallen from 64 per cent in 2004.
Deloitte’s research manager Shaun Dawson said that while the big clearing banks have cut back on space, foreign banks such as the Agricultural Bank of China have moved in to fill the gap.
He added that while IT systems and more automation in the sector were leading to jobs being cut by banks, news roles were being created on the back of stringent regulation of the sector since the crisis – although not enough to stem the decline in space being occupied by banks over the next decade.
Elsewhere in the sector, insurers have fuelled demand for space, up 10 per cent, thanks to the likes of Aon, Amlin and RSA taking up new offices in the City close to Lloyds of London. Trading firms have also upped their share by 10 per cent.