The future of new skyscrapers in London was today in doubt with many of Britain’s workers now told they might not return to the office until next summer.
Companies are giving up or downsizing their offices as they change their working structure following the coronavirus lockdown imposed three months ago.
And there are now fears that huge developments still under construction in the City could be put on hold with developers concerned about opening empty.
Some firms have already left their London offices while others are looking at ‘workplace clubs’ where they would use a building for a few days each month.
It comes amid fears for the likes of gyms, sandwich shops and bars in city centre areas near offices, whose trade is likely to remain low in the coming months.
Among the major buildings currently under construction in the capital are 1 Undershaft (highlighted red, left) and the Diamond (highlighted red, right)
Deloitte consultants said some big construction schemes could pause. In the City of London, these could include the 984ft 1 Undershaft, also known as ‘The Trellis’ due to its cross bracing
The 56-storey tower The Diamond (centre) is among the skyscrapers set to change the London skyline in the coming years, and it will be the City of London’s third tallest building at 814ft
The Bishopsgate Goodsyard towers development is another that could have to be paused
Consultants at Deloitte said some large construction schemes are likely to pause as people continue to work from home – with many unlikely to return until 2021.
Among the major buildings currently under construction in the capital are 1 Undershaft, the Diamond and the Bishopsgate Goodsyard towers.
Deloitte’s London crane survey estimates construction delays of up to six months, with 22 Bishopsgate in the City among those which could be pushed back.
It said: ‘While there will inevitably be delays in construction programmes, permanently stopping construction that is already underway is unlikely.
‘There were ten schemes equating to 1.4million sq ft on the verge of commencing in mid-March which will undoubtedly be subject to review with on-site work delayed accordingly, whether that be a near-term postponement or a comprehensive rethink.
‘We foresee very few developments being launched in the next six to nine months as decisions will be deferred until there is more stability in the market.’
It is also becoming ever clearer that the return to the office for some companies may never be the same as before.
Bishopsgate Financial Consulting is among the London-based firms downsizing, and has cut its annual cots by a quarter by giving up its head office in the City.
Mike Hampson, of Tonbridge, Kent, who is chief executive of the firm which employs 65 staff, told the Guardian: ‘We were planning to move offices.
‘We’d given notice just before the lockdown came in. When we started working remotely, we realised we were working very effectively as we were.’
It has bought desks, laptops, screens and printers for staff to create a home office, but kept a ‘virtual office’ in the City along with access to meeting rooms.
Another company that has given up its City head office is Vantage Point Global, which trains graduates for banks and employs 45 people.
Chief executive James Brincat told the Guardian: ‘We are working perfectly well, almost better than before. People are happy they can cut out the commute.’
The company is using a ‘workplace club’ which means it can have access to meeting rooms and lounges for some days of the month, greatly cutting costs.
An image released by the City of London Corporation shows how the City skyline could look by 2026 when current construction projects such as 1 Undershaft and the Diamond are completed
Cranes next to skyscrapers in the City of London today, as the capital remains eerily quiet
A coffee is given to a customer at Pret a Manger on New Cavendish Street in London on June 1
Customers shop at Pret a Manger on New Cavendish Street in London earlier this month
It comes after Barclays chief executive Jes Staley said in April that the bank will not revert fully to its pre-January working habits when the pandemic is over.
He added that the ‘notion of putting 7,000 people in a building may be a thing of the past’ and investment bankers could work instead from branches.
In addition, Lloyd’s of London expects just 20 per cent of it staff will return to its building, and Facebook said up to half could be working from home by 2030.
Critics have already called on civil servants to lead by example and save Britain’s high streets by getting back to the office.
City centres are facing financial ruin after officer workers were told to continue working from home until next summer, despite the easing of lockdown.
There are fears that such a move could spell disaster for shops, bars and restaurants that are reliant on trade from commuters and office workers.
But the Home Office has already indicated to staff in Whitehall it could be 12 months until they are back in the office, while only 30 staff have returned to the Westminster office of the business department, a tiny fraction of its workforce.
The business department is tasked with kick-starting the economy and critics have called on ministers to lead by example and get civil servants back in the office.