Key facts
- London property giants are urging the incoming Prime Minister to designate central London offices as critical economic infrastructure.
- The London Property Alliance (LPA) states a shortage of high-quality office space is hindering UK productivity.
- Major commercial planning applications in central London fell by 54% in the decade to 2023.
- Around 14 million sq ft of office floorspace was lost in London in the five years to 2023.
- Developers are also calling for infrastructure projects like the Bakerloo line extensions and Crossrail 2.
Leading property developers and investors in London have urged the incoming Prime Minister, Andy Burnham, to prioritize new office construction in the capital. The London Property Alliance (LPA), representing 300 major firms, argues that a deficit of high-quality office space is a significant factor in the UK's stagnant productivity and sluggish economic growth.
In a letter to Burnham, the LPA requested that central London offices be classified as critical economic infrastructure. This designation, they believe, would lend greater weight to planning applications for new developments. The alliance, whose members include FTSE 100 companies like British Land and Landsec, as well as Nasdaq-listed CBRE, contends that modern workspaces are essential for businesses to expand and for the UK to retain a larger share of economic growth.
Developers point to a stark decline in major commercial planning applications in central London, which fell by 54% in the decade leading up to 2023, despite the opening of the Elizabeth Line. Furthermore, an estimated 14 million square feet of office space has been lost in the five years to 2023, a figure comparable to nearly 12 Canary Wharf towers. This reduction, the LPA warns, jeopardizes London's competitiveness in attracting international businesses and retaining top talent.
The LPA also highlighted the importance of supporting infrastructure projects, such as the Bakerloo line extensions and Crossrail 2, to facilitate worker mobility in central London. Additionally, the group advocated for Burnham's devolution plans to empower local authorities in London by granting them greater control over business rates revenue, enabling the city to better address its unique opportunities and challenges.