Knight Frank: UK life sciences firms jump 22% as lab property market enters new cycle
The number of active UK life sciences companies has jumped 22% since 2019 to 15,436 at the end of 2025, according to Knight Frank. It said a shifting balance between the supply and demand of high-quality lab space is set to support the growth of new market entrants.
Available lab space across the Golden Triangle — London, Oxford and Cambridge — stands at 111,500 sq m — up 68% year-on-year — while identified demand for lab and tech box space totals 148,650 sq m. A further 339,100 sq m is currently under construction and due for completion by the end of 2028, with 153,300 sq m scheduled for delivery this year alone.
Golden Triangle take-up nearly doubled from 49,800 sq m in 2024 to 95,700 sq m in 2025, though a single transaction — the Ellison Institute of Technology’s acquisition of over 37,200 sq m at The Daubeny Project at Oxford Science Park — accounted for the bulk of the increase.
Aside from ARM’s 8,900 sq m in Cambridge and LifeArc’s 6,510 sq m pre-let in London, leasing activity was predominantly driven by smaller occupiers, with only 17 transactions exceeding 930 sq m recorded during 2025.
Company formations slowed in 2025 amid tougher market conditions, but Knight Frank, the London-based global property adviser, said early signs point to stabilisation, with improving sentiment suggesting demand for additional space could strengthen if companies resume hiring.
A significant regional shift is under way. The North West ranked second only to London for new life sciences company formations in 2025, surpassing both the South East and East of England for the first time — signalling the emergence of new regional hubs beyond the traditional Golden Triangle.
AI and robotics are reshaping real estate demand. Growing requirements for dry lab space from AI-automated laboratories, robotics and advanced manufacturing firms are generating demand for sites with strong local connectivity and on-site power infrastructure.
Recent announcements included Liverpool’s plans for a £100 million AI-driven materials discovery centre, DeepMind’s proposal for its first automated materials science lab in the UK, and Eli Lilly and NVIDIA’s $1 billion five-year commitment to a joint AI laboratory.
Knight Frank said supportive government policy and improving economic conditions are supporting a more positive outlook for 2026, providing the UK with a platform to strengthen its position as a global leader in science and innovation.
