The UK government released its Life Sciences Sector Plan in July this year, as part of its Industrial Strategy. This ten-year plan outlines a vision and actions to drive growth, boost innovation, and improve healthcare outcomes by making the UK a leading life sciences economy in Europe by 2030. It focuses on three main areas: strengthening research and development through data and digital infrastructure, creating an attractive ecosystem for business growth, and reforming the NHS to accelerate patient access to new treatments and technologies.

However, the news flow over the summer has been less than positive, with the sector being hit by several high-profile blows, including Eli Lilly pulling out of its London HQ plans, Merck pulling out of its £1 billion new London UK HQ, and AstraZeneca cancelling its £450,000 Merseyside manufacturing facility expansion. Nevertheless, as autumn emerges from the languid summer, more tenant activity is noted on the ground by our transactional teams, which we expect to drive higher confidence in development.

Indeed, the data from our recent Spotlight: Golden Triangle Offices & Laboratories report highlights that, for the most part, take-up is robust. At the halfway point of 2025, demand in Cambridge has reached 81% of the whole of 2024, and London is even more respectable at 87%. Whilst Oxford is currently languishing at just 24% of last year's total, the outlook for H2 2025 is more positive, with 82,000 sq ft currently under offer and 393,000 sq ft of active requirements.

Turning to the construction of new science facilities, the average construction tender price forecast across leading cost consultants for science projects remains at an average of 3% for 2025, reflecting no significant change. Costs of science facilities continue to be impacted by the proportion of high-cost mechanical, electrical, and plumbing (MEP) in science facilities, disproportionately impacting the sector. Slower activity within the sector may cause tender prices to decrease in the coming quarters, as contractors need to work harder to win fewer live projects.

We continue to observe a trend of landlords speculatively fitting space and offering higher leasing terms to end users, meaning landlords are driven to provide speculative fitted space, alongside shell and core. At the smaller end of the market, seed and Series A companies continue to show a preference for ‘turnkey’ lab space with communal shared services, whereas larger requirements for companies into and beyond Series B still require bespoke solutions, and as such, spaces are still left in shell and core condition for leasing.

Moving forward, we continue to see plant and equipment remain on long lead times with project teams being driven to mitigate programmatic impacts through early orders.

Recent news reports that the UK government has drawn up proposals to increase the amount the NHS pays pharmaceutical firms for drugs will, hopefully, be a welcome boost to the sector. A more stable business environment will ultimately pave the way for improved business confidence and, in turn, investment in new facilities.

_{Read the articles within Savills Build: Perspective report below}