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Amount of office space in London on the up, but is it fast enough?

Figures have shown that the amount of building work taking place in the capital may not be enough to satisfy the demand for office space in London.

Building projects are currently at their highest rate in three years, but a recent survey has indicated that there may be a shortage of space for businesses in London over the next two years, Financial News reported.

The shortage may arise as a result of timing on the part of developers. Although new projects have been approved and building has started, only 120,000 sq ft of office space is set to become available this year, and none in 2013. Major problems are anticipated by 2014.

Rates are predicted to rise even further over the next couple of years, the news provider reported.

This information was revealed in the London Offices Crane Survey, which is completed by Drivers Jonas Deloitte on a bi-annual basis.

The cost of London office space can vary considerably depending on size, finish, facilities and location.