Hedge fund managers are increasingly looking beyond their traditional London hub in Mayfair and St James’s for office space, as the industry looks to cut costs after its worst recorded performance last year.

The popularity of the new areas, such as Baker Street and Lower Regent Street, for funds comes despite rents for prime offices in Mayfair and St James's falling from a peak of £140 (€162.3) per sq ft in 2007, to an average now of £87.50 per sq q ft, according to property consultant CB Richard Ellis.