44% of UK adults now work remotely, report finds

The Centre for Economics and Business Research has estimated that London’s GDP is overstated by £8bn as more output now comes from suburban and regional locations.

Around £3bn in retail and hospitality spending has moved from city centres to commuter towns, with the South East and East of England gaining approximately £7bn in combined activity.

Despite expectations that remote work would support “levelling up”, the report suggested the opposite: hybrid models still require proximity to major cities, reinforcing advantages for already prosperous regions.

Financial impacts on workers were mixed. While employees can save up to £2,400 annually on commuting, 86% report higher household costs, averaging £47 per week in additional utilities and broadband.

Well-being indicators were similarly divided: 78% said work-life balance has improved and 65% reported higher satisfaction, yet 80% said blurred boundaries have affected mental health.

Between 18% and 39% experience physical issues linked to inadequate home workspaces.

Concerns about fairness were emerging as hybrid patterns become increasingly entrenched.

94% of business leaders noticed in-office employees more often, contributing to a “proximity bias” that leaves hybrid workers 7% to 8% less likely to receive promotions or pay rises without clear performance metrics.

The research also revisited outcomes from the UK’s 2022 four-day week pilot, where 92% of participating organisations retained the shorter week.

Companies recorded a 35% rise in revenue, a 57% fall in turnover and a 65% drop in sickness absence, with strong gains in employee well-being.

Looking ahead, the report described structured hybrid work as the most stable long-term model.

Most UK CEOs (74%) said a full return to the office is not a priority, and up to 48% of employees said they would consider leaving if compelled to return five days a week.

A two-to-three-day office pattern is identified as the most sustainable approach.

Jasmine Escalera, career expert at MPCV, said: “Remote work is the new foundation of the modern economy.

“The data shows flexibility can fuel productivity and well-being, but only when managed intentionally.

“The next frontier isn’t about where people work, it’s about how leaders ensure equity, connection, and growth in a distributed world.”