The number of office workers in the City of London could be boosted by up to 100,000 people, with the shift to flexible working expected to boost the number of firms with urban office hubs, according to KPMG.

Research from the accountancy firm suggested the trend towards larger offices in skyscraper locations could be replaced by a focus on smaller offices, freeing up space for businesses to open sites in previously competitive and expensive locations, the Telegraph has reported.

Other cities such as Leeds, Manchester, Bristol and Glasgow are also expected to see the benefit of this change, with employment set to rise by five to ten percent in these areas.

KPMG’s report, ‘New working patterns and the transformation of the UK business landscape’, suggests that with increasing numbers of people working two to three days from home, existing office space capacity could potentially increase by as much as 40%.

However it also suggests that less dense business areas could see a decline in employment and may need to be transformed into more residential, leisure, retail-focused destinations.

Yael Selfin, chief economist at KPMG UK, said: “As we emerge from the pandemic, businesses need to adapt to the new environment they will be facing. Some may choose to relocate to larger business hubs to boost profitability, while others in less central areas could see their local customer base profile change.”

Selfin added that as people spend more time working from home, we could see a revival of the local high street.

“They will need to transform into places of purpose to meet demand for community-based services, hospitality, culture, as well as retail. High street offering in smaller towns and cities may need to become more focused on residents’ needs and less focused on businesses and commuters,” he said.