The UK has been warned that it risks falling short of Nato defence spending targets unless planning regulations are addressed to tackle a land shortage. Industry body Real Estate UK stated that the country is on track for a shortfall of 14m sq ft by the next general election in 2029, unless efforts to secure space are increased.
Demand for defence-related industries and logistics space is projected to surge to 32m sq ft by 2033 if the government meets Nato’s defence spending targets. Vanessa Hale, chief executive of Real Estate UK, said that planning, infrastructure, and skills barriers pose a “significant risk to the government’s overall defence objectives.”
Defence-related activity accounted for 1.3m sq ft in the first half of 2026. The recently published defence investment plan (DIP) is expected to boost activity among manufacturers and suppliers, potentially making 2026 one of the strongest years for defence-related activity in the UK.
Defence Secretary Wes Streeting defended the government's commitment to spending 3.5 per cent of GDP on defence by 2035 at Labour’s party conference this week. He stated the government would invest in British companies and jobs to drive this expansion, but Real Estate UK warned that the country’s land shortage puts this pledge at risk.
Robert Pearson, a director at Savills, noted that the delivery of military goals depends heavily on the availability of suitable physical space, often requiring secure, power-enabled, and highly specialised facilities.