In a collaborative effort, two influential entities in the real estate sector have teamed up to present a compelling report addressing the imperative need for substantial investment in the life science property sector. Acknowledging the inherent interests of these companies, the report stands on a bedrock of convincing figures and unveils a comprehensive five-point plan, delivering innovative strategies to propel investment in the dynamic field of life science property.
Is there a Demand for Life Science Property?
The Golden Triangle, extending from London to Cambridge and Oxford, is the epicentre of the UK’s life sciences. However, a conspicuous shortage of suitable laboratory space prevails, with Cambridge and London facing a mere 1% lab vacancy rate, and Oxford with only 7% available space. Despite hosting two global leaders in life sciences, the local infrastructure struggles to keep up with the surging talent and companies.
The report underscores the potential benefits of aligning the growth of life sciences markets within the Golden Triangle with leading markets in the US. By 2035, this alignment could yield 67,000 additional jobs, £4bn in Gross Value Added annually, and an extra £1.1bn per year in tax revenue. The growth potential extends beyond the Golden Triangle, with R&D facilities outside the region having the capacity to create 14,500 well-paid jobs, £870m in additional Gross Value Added, and an extra £235m per year in tax revenue.
The Five-Point Plan to improve availability of life science property in the UK
Set ambitious growth targets, aiming for a minimum 25% increase in Gross Value Added and a doubling of foreign direct investment by 2035.
Prioritize infrastructure, including a commitment to build the East West Rail, fostering cluster growth.
Enable planning delivery by designating Development Corporations for innovation-led regeneration in economic growth corridors.
Leverage 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.
Align local skills with opportunities in life sciences for inclusive growth.
Effectiveness of the Plan for the Sector
While the plan demonstrates promise, questions arise about the government’s role in driving investment, the geographic targeting of investments, and potential consequences on other sectors.
This isn’t a critique of the report; we wholeheartedly support the imperative need for life sciences investment. Yet, as various sectors seek investment, it’s crucial to make informed decisions that distribute resources effectively, promoting prosperity across diverse regions. A multi-sectored approach is vital, considering housing, infrastructure, and industrial sites to stimulate growth whether in the Golden Triangle or Outside. The Golden Triangle maybe the logical area for development but housing constraints and high salaries may mean that other areas are in fact more suitable. Especially as a younger and more mobile work force play a significant part.
Will this plan help the UK become a Science Superpower? It goes some of the way. However, it maybe unintentional too focused on the Golden Triangle without seeing the benefits of holistic planning. The report is focused almost exclusively on commercial property. Which is the writer’s business so to be expected, however as noted there are wider implications for communities and other industrial sectors including suppliers to the life science sector.
Comprehensive planning will secure the UK’s position as a global life sciences hub while fostering inclusive growth and economic sustainability across all STEM sectors and the broader community. This report is a step in the right direction.
You can find a copy of the report here:
Senex Recruitment Supports Life Science and STEM Careers
This stimulating report poses many questions and suggests answers to how the UK can stimulate the Life Science market. We play our own part in promoting the benefits of a career in Life Sciences and the wider STEM market
If you aspire to be a part of STEM or Life Sciences, we invite you to explore our job postings. You can also register as a candidate. Additionally, if you’re seeking to expand your team, you can register a vacancy on our website.
Join Senex Recruitment Ltd in shaping the future of science and technology. By following our social media channels as we post the latest in STEM jobs and news.
Additionally, we are always ready to help and offer support and advice regarding the career in STEM. Therefore, do not hesitate to call our consultants on 01424 211872.