For many businesses, remote work was once seen as a perfect solution — cutting overheads, boosting productivity, and keeping everyone happy. But as London companies settle into new rhythms, a more complicated picture is emerging.
The reality? Remote work isn’t as “free” as it seems, and the cost isn’t just financial. From mental health and career development to the everyday struggle of working from cramped flats, offices still play a crucial role in how Londoners work and connect.
Here’s why some of London’s most forward-thinking companies are rethinking remote work — and how having the right kind of workspace solves real challenges.
1. Mental health, loneliness, and the isolation effect
Let’s start with the obvious but often overlooked: working from home can be lonely.
While many employees enjoy flexibility, others report higher rates of burnout and disconnection when working remotely for too long.
In a city like London, where life is already fast-paced and people often live far from friends and family, the absence of a workplace community can take a real toll.
According to Mind UK, nearly 60% of remote workers say isolation has negatively impacted their mental health in the past year. An office isn’t just about desks and WiFi — it’s about daily human connection, shared energy, and having a reason to get out of the house.
“Some days, I realise I’ve not spoken to anyone all day. The office gives me that social anchor.” — London-based marketing exec (LinkedIn Poll, 2024).
2. The impact on young professionals: No space for mentorship
Senior leaders might prefer the quiet of home, but younger employees are missing out the most.
Learning by osmosis, casual mentorship, and picking up knowledge in real time is almost impossible to replicate over Zoom. For junior team members, being in an office means access to quick advice and professional growth opportunities that don’t always translate online.
In fact, 76% of London managers surveyed by YouGov in 2023 said career progression for junior staff is “much harder” without regular in-person interaction.
This is often the conversation that brings companies to us at Soul Spaces — how do you balance remote work with the need to nurture and grow your team?
3. The reality of London living: Small flats, shared homes — no room to work
Let’s face it — not everyone has a home office, a garden studio, or even a spare corner of the kitchen table.
According to ONS, over 35% of Londoners live in shared or multi-occupancy homes, making working from home less than ideal. Trying to take a sensitive client call from a shared living room or working from bed isn’t exactly sustainable.
It’s no wonder so many companies are now looking for smaller, high-quality offices that give their teams a proper place to work when they need it.
“Our team loves flexibility, but without an office, they had nowhere to focus properly. Now they choose when to come in, and it’s made all the difference.” — London startup founder.
4. Hybrid is the future, but space still matters
For many businesses, hybrid working has become the answer.
But that means offices need to work harder — spaces where people want to spend time, not just rows of desks and sad strip lights.
Today’s offices are about collaboration, private spaces for calls and deep work, and places where teams can reconnect.
At Soul Spaces, we often help companies design flexible, future-proof offices — spaces that make coming into work feel like a choice, not a chore.
5. The hidden cost of “all-remote”: Culture, retention, and creativity
Finally, there’s the issue that doesn’t show up on spreadsheets — the loss of company culture and creativity.
Without a place to meet, share ideas, and build relationships, innovation suffers. According to a PwC UK survey, 49% of companies said collaboration and creativity have dropped since going fully remote.
And when employees feel disconnected, they’re more likely to leave, costing companies even more in hiring and training new people.
“Our biggest challenge? Keeping a strong culture while fully remote. The office brought back a sense of identity.” — HR lead, London fintech.
Final Thoughts: A space that works for people — and the way they work now
We’re not saying every company should go back to full-time office life. But writing off offices altogether comes with real, often hidden costs.
The best offices today support the way people work now — giving teams the choice to come together, collaborate, and focus when they need to.
For many London businesses, it’s not about having a huge space anymore — it’s about the right space, designed well, that adds value to your team’s day.
And that’s what we see happening across London. Companies investing in thoughtful, flexible workspaces that support their people and keep them connected — because when you get it right, the office becomes a place people actually want to be.
- Francel Bangayan
