London's property titans are sounding the alarm: without a massive injection of new office space, the UK's economic growth will stall. The London Property Alliance (LPA) has written an urgent letter to incoming Prime Minister Andy Burnham, calling for central London offices to be designated as critical economic infrastructure.
The LPA represents 300 major developers and investors – including British Land and Landsec – who argue that a chronic shortage of modern office space is crippling the nation's productivity. They point out that flatlining growth has constrained wages, investment, and tax revenues, leaving public services and local infrastructure struggling to keep up.
Data shows a stark decline in major commercial planning applications in central London, plummeting by 54% over the past decade. This has led to a loss of an estimated 14 million square feet of office floorspace – equivalent to nearly 12 Canary Wharf towers. The property giants warn that this reduction is jeopardising London's global competitiveness and making it harder to attract top companies and talent.
The LPA wants Mr Burnham to grant central London offices special status in planning decisions, streamlining the approval process for new developments. They argue that modern workspaces are essential for the UK's leading sectors – including finance, tech, life sciences, and creative industries – to compete globally. Office-based sectors support 2.8 million jobs across Greater London, generating nearly £290 billion in economic output annually.
The property giants also want Mr Burnham to push forward with long-discussed infrastructure projects like the Bakerloo Line extensions and Crossrail 2, as well as devolving power to local authorities within the capital. They believe this would allow London to better address its unique opportunities and challenges, supporting businesses and workers alike.