Leasing levels in the UK office market fell sharply again in Q1 2009 as the credit crunch continued to impact on occupational demand, according to Digby Flower, head of Central London Agency at CBRE.

Speaking at the annual British Council of Offices Conference in Edinburgh recently, Digby said London was hit hardest but that most key regional centres saw take-up levels fall between 15-50%.

Although London is particularly exposed to the current large-scale restructuring of the financial sector, evidence from past downturns shows that London typically recovers quite quickly, according to Digby.

He said: “It’s a case of first principles as the key drivers for future stability will be based on the reputation of London as a centre for business. London’s competitiveness has been less affected compared with other centres and financial services will continue to be the key driver of economic growth. The UK has seen the most rapid re-pricing of any market and we are consequently seeing an increasing amount of equity focused on the UK and on London in particular.”

The banking and finance sector accounted for 32% of take up in London between 1984 and 2008, while the complementary professional, business and legal services sector accounted for 32%.