UK faces land shortfall that could jeopardize NATO defence spending goals

Industry group Real Estate UK cautions that the United Kingdom will not achieve NATO’s defence spending benchmarks unless it swiftly removes planning and infrastructure barriers that are limiting access to land. Analysts project a need for 32 million sq ft of defence-related space by 2033, yet the country is on track to lack 14 million sq ft by the 2029 general election. The shortfall includes both manufacturing and logistics facilities as well as roughly 2.6 million sq ft of office space to accommodate 12,600 new administrative positions.

The Ministry of Defence’s recent 545,000 sq ft drone testing centre in Swindon exemplifies the growing cluster in Derby, Plymouth and South Wales, but further expansion is constrained by land, skills and grid capacity shortages. Defence secretary Wes Streeting has reaffirmed a commitment to spend 3.5 % of GDP on defence by 2035, yet Real Estate UK says the lack of suitable sites threatens that pledge. Savills director Robert Pearson stressed that defence occupiers require secure, power-enabled, specialised premises, highlighting the urgency of addressing the land deficit.