The life sciences market in the Golden Triangle could generate an additional £4bn in gross value added (GVA) per year by 2035 if the region matches the growth seen in leading markets in the US, according to a new report produced by British Land and Savills.
The report also found accelerating the growth of R&D facilities outside the Golden Triangle to match its growth rate could result in an additional GVA of £870m per year across the country by 2035.
The ‘Accelerating Innovation: A five-point plan to boost life sciences real estate’ report, outlines a series of recommendations designed to accelerate the delivery of life sciences growth across the UK.
British Land and Savills are urging the government to: set ambitious growth targets for the sector, including growing GVA by at least 25% and doubling the value of inward foreign direct investment by 2035; prioritise infrastructure to support the growth of clusters, including a commitment to build the East West Rail; enable planning delivery by designating development corporations to support innovation-led regeneration in economic growth corridors; use the tax system to support life sciences real estate growth by expanding R&D tax credits to include relief for capital expenditure on laboratory space, drawing on international examples to boost the sector; and align local skills with opportunities in life sciences to deliver inclusive growth.
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.”
