The UK needs to expand the amount of laboratory space available to research firms or risk losing out on its science superpower status, a report has found.
According to the study from British Land and Savills, there is a “severe shortage” of real estate space available to accommodate both current and predicted demand, with vacancy rates for fitted lab space just one per cent in Cambridge and London and seven per cent in Oxford.
It also found that if the life sciences markets matched the growth seen in the US, by 2035, it would generate 67,000 more jobs and lead to a £4bn economic boost.
In March, Prime Minister Rishi Sunak promised to help make the UK a science and technology superpower by the end of the decade, with various investments in upcoming technologies such as AI.
The report comes just days ahead of the Autumn Budget and calls on the government to implement “ambitious growth targets” for the sector, including growing its gross value added (GVA) by at least 25 per cent and doubling the value of inward foreign direct investment by 2035.
It also suggested that infrastructure improvements should be prioritised to support the growth of clusters, including a commitment to build the East West Rail – a new mainline between East Anglia and South Wales.
British Land proposed expanding R&D tax credits to the life sciences sector – including relief for capital expenditure on laboratory space.
Simon Carter, chief executive at British Land, said: “There should be no limit to the ambitions of the UK life sciences sector. We have the academic strength, a skilled workforce and cutting-edge clusters.
“In order for the UK to become a life sciences world leader, we need to quickly increase the supply of life sciences real estate with the right specifications in the right places. Today we’ve recommended five tangible actions to supercharge growth. The potential is huge and we are ready to play our part to grasp the opportunity.”
Tom Mellows, head of Savills Science, added: “We are continuing to see positive levels of demand across the golden triangle, particularly in Oxford and Cambridge where take-up remains at record highs. However, the UK will not be able to sustain this level of growth if we don’t provide the right real estate.
“London is a great example of where the lack of purpose-built lab space has impacted on occupiers’ ability to expand. However, 2023/24 will see the first delivery of a significant quantum of this type of space in the capital, which will no doubt lead to an uptick in activity moving forward.
“We have already seen demand for science-related real estate increase considerably over the past five years and the potential to deliver growth quickly will accelerate this further still.”
