Critical shortage of lab space for London Biotech start-ups

The United Kingdom is home to a wide variety of small biotech businesses, many of which have emerged from research institutions. However, compared to the US, comparatively few recent UK startups have expanded into large ventures, much alone become well-known brands. According to a recent report by One Nucleus – an organisation supporting biotech companies in the south east of England – one of the main contributors to the choked growth is the shortage of laboratory space that is vital for the vast majority of R&D companies.

Although the shortage affects the entire nation, it is particularly severe in the so-called "Golden Triangle" region, which includes Oxford, Cambridge, and London, as well as to a lesser extent the greater south-east. The high cost of rent for laboratory space in desirable areas is one of the major issues facing biotech start-ups. Many start-ups find it difficult to get the laboratory space they want because they simply cannot afford to pay the premium rent rates asked by landlords. This puts a major burden on their resources.

In addition, the amount of time it takes to find lab space might also be a big problem. Startups must act swiftly to set up shop and start doing research, but the protracted process of finding a lab space can hold them up and seriously hinder their chance to succeed.

The rivalry for lab space from bigger, more established firms is another difficulty for biotech start-ups. These may outbid start-ups and obtain the finest lab space because of their higher financial resources and buying power.

There is hope for the lab space-choked London, as just in October 2022 the Canary Wharf Group has submitted plans for a huge "vertical" life sciences complex as the owners of the east London neighbourhood try to wean themselves off of financial services. It would be a component of a new life sciences quarter that the firm aims to build in Canary Wharf's northern section as some of its longtime tenants in the financial services sector ponder moving or downsizing. One of the key features of the life science quarter will be its state-of-the-art laboratory space, which will provide companies with the resources they need to conduct their research and development. The laboratory space will be equipped with the latest technology and equipment, including high-tech incubators, accelerators, and co-working spaces, allowing companies to work together and collaborate on new projects.

The area near London’s King's Cross known as the "knowledge quarter" has so far received the majority of investments in London and is home to the University College Hospital, the Crick Institute, the Wellcome Trust, and other universities.