Planners, developers, and policymakers are urging the government to unlock the full potential of the built environment sector, which contributes £567.6 billion annually to the UK economy – double that of financial services and quadruple that of the creative industries.
A study by New London Architecture (NLA) and Polygon Place Strategy, in partnership with GLA Economics, and the London School of Economics and Political Science, revealed the built environment sector supports 3.7 million jobs – 12 per cent of total employment – and accounts for 24 per cent of the nation’s GVA.
The partners are now calling for a “big bang” approach, akin to the 1980s strategy when the banking, finance, insurance, law, and accountancy sectors united to define financial services as a single, strategic industry.
They argue that this would encourage greater collaboration and investment across industries like construction and planning, with the aim of positioning the built environment as a key growth sector, making it central to the UK’s economic strategy and addressing challenges like productivity, skills shortages, and innovation underinvestment.
NLA chief executive, Nick McKeogh said: “Redefining it as a high-growth sector in the industrial strategy – rather than as merely a facilitator of growth in other key sectors – would allow built environment industries to reach their potential.”
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Industry leaders stressed the combined potential to attract investment, boost innovation, and shape global cities like London.
Peter Hogg, UK cities director at Arcadis, highlighted the impact of viewing the built environment as an independent sector, rather than just a facilitator for others.
“The built environment sector is so much more than the sum of its parts and so much more than a servant-enabler of the wider economy,” he said. “[It] is a sector in its own right, attracting capital investment through innovation, research & development and application of human talent.”
Kristy Lansdown, managing director of development at The Crown Estate, added: “Recognising that the built environment has a huge impact on all facets of society is vital if we are to unlock its full potential, delivering buildings and places that benefit today’s population and generations to come.”
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