London: the global hub for architecture

Presented by The Worshipful Company of Architects’ City of London livery to Lord Mayor, Michael Mainelli, June 2024

This summary report has been prepared by the Worshipful Company of Chartered Architects (WCCA)1 in collaboration with the Royal Institute of British Architects (RIBA)2. It is based on a presentation given to support the Lord Mayor, Michael Mainelli in advocating for the City of London’s creative industries. Consolidating recent research that highlights the increasing global significance of London as a hub for architetural services,

it draws on RIBA data and key industry metrics to evidence the value of the sector to the UK’s knowledge economy, global trading position, export income and economic growth.

The authors also suggest how and why this phenomenon came about, and how the industry needs to be supported to remain competitive and promote architecture practices of all scales throughout the UK. Through London’s hub, securing the UK’s position at the forefront of professional services across the built environment.

London: the global hub for architecture ? WCCA & RIBA, April 2024

London is recognised as a global hub for financial and professional services, but it is not so widely known thatLondon is also the world’s leading hub for architectural services.

The UK’s construction industry is a major and vital sector of the UK economy, employing 9% of the nation’s workforce. Beyond its ability to stimulate economic growth, the sector can deliver national infrastructure, support decarbonisation initiatives and boost economic capability. However, due to a long-term decrease in the UK’s manufacturing and construction capacity, the industry is now a significant net importer of construction products, materials and contracting services, with an annual trade deficit in Construction Materials of around ￡15bn.

Below: WCCA City Building of the Year Award winner in 2023, Exchange Square by DSHDA

However, the UK’s professional services are booming - reversing the wider construction trend, professional services related to the construction industry are making a positive contribution to the national balance. Our built environment professionals are highly valued, and the UK has become a global hub and world-leader in this field - nowhere is this exemplified more than by the architectural profession. The ‘sales’ of architectural services have increased since our previous analysis

as London’s architectural influence has grown exponentially.

This report has been prepared by the WCCA, based on the analysis of recent RIBA statistics and reports, for the Lord Mayor of London and the City of London Corporation to inform their development and promotion of the City of London as the global hub for architecture and allied professional services.

Based on recent statistical data3, London is the world centre for professional services in architecture - and the work and workforce of London-based practices is more international than anywhere else.

1. Compared to any other country, the UK has the highest number of architecture practices among the World’s ‘Top 100’. A third (33%) of the world top 100 have either a branch or their headquarters in London.

2. More than half (58%) of all the UK’s architectural staff are employed in London: this has produced the greatest concentration of international and UK architects in the world.

3. 70% (￡2.5bn) of the ￡3.6bn annual income from all UK architects’ chartered practices is generated in London.

4. 87% (￡653m pa) of the UK’s international earnings from architectural services is generated by London-based UK chartered practices. The value of these international earnings has increased by an astonishing 43% over the past two years, primarily from additional workload from Europe and NorthAmerica.

5. The reach is truly international. 27% of London-based Chartered Practice architects’ earnings are from international projects, compared to 17% for the whole of UK (including London) and less than 3% for the EU.

London: the global hub for architecture ? WCCA & RIBA, April 2024

The market for professional services

London: the global hub for architecture ? WCCA & RIBA, April 2024

What does this mean for the City, the UK and wider economy?

As well as generating ￡650 million in international trade earnings from international projects for the UK, London’s hub for global architecture also contributes to the ecosystem of related financial, legal, property, engineering, education and specialist built environment professional services that form the valuable knowledgeeconomy.

Business data from the UK’s professional body, RIBA also provides a valuable and accurate forecasting indicator of the future UK construction and property market

and national economy. This is because architects are at the very start of the property development process - their workload becomes the supply chain for the UK construction industry, and shapes the property assets for the following 5+ years.

Right: Recognising and celebrating the high quality of architecture in London. Jury visits to assess the shortlist for WCCA’s City Building of the Year Award.

UK architects and related construction professionals are valued internationally for their: ? Creativity and innovation

? Professionalism and skill ? Specialist knowledge and expertise ? Quality of service, and ? Business standards.

London: the global hub for architecture ? WCCA & RIBA, April 2024

How and why did London become the profession’s global hub?

Strong foundations

Established professional systems, developed and provided by independent royal chartered bodies, livery companies and a statutory regulators4 operating in the public interest, setting international standards in professional knowledge, education, practice and ethical behaviour.

Academic excellence

Educational excellence and research provided by the UK’s universities and technical colleges in design and technical professional subjects, to meet UK professional bodies’ qualification criteria. This attracts international students and academics, with around a third of students enrolled in UK architecture courses coming from overseas.

Professional ecosystem

The global finance and professional services hub in the City, and London as a whole, represents a powerful network of mutually beneficial financial, legal, engineering and property services.

Supportive market

An attractive UK business environment provides an open but orderly market, with clear corporate, operational, legal and tax systems. This produces a professional talent pool and networks with allied specialist businesses and support services.

Regulatory framework

The effective regulation of UK business operations, in addition to technical standards that are performance and evidence-based, rather than overly prescriptive.

International finance

International investment in the UK’s property, infrastructure and construction services market, including investment and design decisions made in the UK for international sovereign and commercial funds in property and development projects around the globe, draw on the unique skills of UK/City-based financial professional services.

The appeal of London

London has long been seen as an attractive city in which to live, work and study, thanks to its transport links, public services, stability, universities, economy, history, culture and lifestyle. For architects, it can provide both occupation and inspiration, as well as access to a professional community through bodies such as the WCCA and RIBA.

London: the global hub for architecture ? WCCA & RIBA, April 2024

“Overall, London’s architecture sector produced ￡1.7 billion in added value in 2015 making it larger than the Museums, Galleries & Libraries creative industry.

In addition, the compound average rate of growth between 2009 and 2015 was 7.6 per cent per annum after adjusting for inflation, which was faster than the creative industries and the Londoneconomy as a whole.”

London’s Architectural Sector, GLA Economics, 2017

London: the global hub for architecture ? WCCA & RIBA, April 2024

How do we sustain London’s position - and evolve?

There are significant challenges facing architects in the UK, which also affect other related professional services and the wider economic, social and future global position of the UK.

Talent retention

The ability of the UK to continue to access and attract the world’s best talent in architecture and specialist professional fields. We would urge the Government to enable non-UK architectural students and architects to study and work in the UK.

Professional recognition

Architecture is a highly regulated profession worldwide, for which the UK has an established and globally recognised education, qualification and regulatory system- this includes the RIBA’s validation of architecture schools worldwide. Architecture is the only non- medical profession specifically covered by the EU Professional Qualification Directive 2005/35, which the UK was part of until the end of 2020. Government needs to achieve the intended post-Brexit reciprocal recognition of equivalent EU and international architectural qualifications, to enable the UK, via the RIBA1 and ARB3, to become a global professional standard and registration system for architects.

International market access

The ability of professional services to access the EU market has been significantly diminished by the Brexit agreement. Nevertheless, this can also create new opportunities for other international trade for the UK’s professional services, including architecture. We would encourage Government to establish new service trade agreements with the EU and the rest of the world, which includes architects, along with financial, legal and other professional services, to maintain and develop the UK’s prominent and valuable global lead in a professional knowledge economy.

Business support

Develop the UK Government’s support and fiscal incentives for exporting innovative creative professional services, such as architecture, to enhance the UK’s global influence and knowledge economy, international competitive trading position and high-value international income.

National infrastructure

Maintaining the world-class infrastructure to support business, particularly in London, including digital connectivity, transport (London airport capacity and connections are critical), flexible office space and affordable residential accommodation.

London: the global hub for architecture ? WCCA & RIBA, April 2024

Conclusion

The data shows that London is the world- leading global hub for architecture. And the capital’s status in the industry is increasing.

Architectural services are a great asset for London’s global influence, reputation and position as the foremost knowledge economy in trusted professional services. London’s architects are also a valuable and unique asset; committed to addressing the most urgent environmental issues of the day, the UK’s architects contribute in many ways to the social, cultural and physical fabric of the country

.

There are several challenges now facing London’s architects and other professional services. These need political will and support from national and local Government, London and City Corporation, and the WCCA is keen to assist.

We have supported the Lord Mayor Michael Mainelli’s outreach programme, contributing to his Knowledge Miles lecture series. We are also making our practice visits, lectures and events available for architects and colleagues to view wherever they are in the world. This, we hope, will be a valuable resource to share ideas and knowledge around global issues, such as the challenges of urbanisation,

homelessness and sustainability. We aim to form a like-minded global community, exchanging ideas under the banner of the Lord Mayor’s vision for London as “the world’s coffee shop.”

Chris Williamson

Master, WCCA 2023/24

London: the global hub for architecture ? WCCA & RIBA, April 2024

Above: DIT Global Outreach Programme with Chris Williamson (centre)

References

1. The Worshipful Company of Chartered Architects (also known as the ‘Architects Company’ or ‘WCCA’) is a modern livery company of the City of London, founded in 1984. The home of the WCCA is Temple Bar, the sole surviving historic gateway

to the City of London designed by Sir Christopher Wren, as their livery hall and the architecture centre for the City. The overall objective of the Company is to promote quality architecture (principally in the City of London) and to support and develop the architects’ profession in theCompany, the City, the UK and globally. As well as this campaign to promote London as the Global Hub for architecture; the Company also engages in public benefit, educational and charitable work. The Company conducts an annual programme of lectures, visits and events promoting architecture; supports architecture students with scholarships and mentoring and awards for the new buildings andpublic spaces which enhance the City of London.

2. The Royal Institute of British Architects (RIBA) is a global professional membership body driving excellence in architecture. It serves its members and society in

order to deliver better buildings and places, stronger communities and a sustainable environment. Being inclusive,

ethical, environmentally aware and collaborative underpins all that it does. It was founded in 1834 and has over 50,000 members worldwide. The 4,200 RIBA Chartered Practices in the UK are the only architectural practices endorsed and promoted by RIBA, through commitments to quality assurance, business management and client service.

3. Survey Evidence

1. ‘WA100’ World Architecture top 100 practices 2024. 2. ‘The Architectural profession in Europe’ (2022) Architects Council or Europe (ACE) 3. ‘RIBA Business Benchmarking Survey 2023’ business benchmarking survey by the Royal Institute of British Architects.

4. UK chartered and regulatory bodies for Architects 1. Royal Institute of British Architects (RIBA) 2. Royal Incorporation of architects in Scotland (RIAS)

3. Royal Society of Architects in Wales (RSAW) 4. Royal Society of Ulster Architects (RSUA) 5. Architects Registration Board (ARB) 6. Worshipful Company of Chartered Architects (WCCA).

London: the global hub for architecture ? WCCA & RIBA, April 2024

London: the global hub for architecture ? WCCA & RIBA, April 2024