Take-up of UK life sciences space slowed in 2024 due to wider market uncertainty, but activity was still strong in the key ‘Golden Triangle’ markets of Oxford and Cambridge, according to the Spring 2025 Life Sciences Research Report published by Carter Jonas.
Last year, life sciences and healthcare businesses accounted for nearly 60% of office and lab leasing activity in Oxfordshire and 70% in Cambridge, and Carter Jonas says occupier appetite for space remains strong in 2025, particularly for smaller, fitted, lab-ready space.
Supply constraints are beginning to ease, with more than 1.5m sq ft of lab space currently under construction in Oxfordshire alone and major projects also underway in Cambridge, London and some regional cities.
Prime lab rents continued to rise last year, with rents in London hitting £135/sq ft for fitted labs, £71.50/ sq ft in Cambridge – a 69% increase since 2018 – and in Oxford average rents for new build lab-enabled space reached £62/sq ft. Regional cities like Manchester and Birmingham are also reporting upward rental movement.
Matt Lee, head of science and technology at Carter Jonas, said: “Despite wider macroeconomic pressures, the life science sector continues to be recognised as a key part of the strategy to strengthen the national economy. The progression of new lab-enabled developments and continued growth in both the Golden Triangle and key regional hotspots across the UK is a real marker of maturity for the UK life sciences ecosystem.
“Demand is expected to grow across 2025, and we are seeing growing occupier interest in regional cities like Manchester, Liverpool, and Birmingham, where the network of university and NHS partnerships is fuelling innovation. We need to see an increase in successful fundraising for earlier stage companies who will drive the growth of this sector alongside more established companies.”
