City of London sees record year for planning applications in 2025
Square Mile approvals hit 10-year high with 500,000 sq m of office space permitted.
31 December 2025
The City of London Corporation has recorded its highest number of annual planning applications in a decade, with 2025 marking a surge in demand for office space in the Square Mile. More than 500,000 sq m of office floorspace was granted planning permission during the year, equivalent to over seven and a half times the size of the Gherkin.
Major applications, defined as those proposing over 100,000 sq m of new space, rose by 36% compared to 2024, reaching their highest level in five years. Approximately half of the permitted office floorspace is already under construction, with significant projects such as 1 Undershaft and developments at 85 and 60 Gracechurch Street progressing.
The surge reflects ongoing demand for high-quality, sustainable office environments. Grade A towers in the City now report vacancy rates as low as 1.9% to 2.6%, well below the broader City average of 7.4%, according to Avison Young.
The City Corporation is in the final consultation stages for its new Local Plan, City Plan 2040, which is expected to be adopted in the first half of 2026. It also adopted a comprehensive suite of sustainability guidance in 2025 and is advancing plans for a low-cost, low-carbon heat network. Half of all planning applications received in 2025 were retrofit schemes, contributing to the Corporation’s net zero target for 2040.
Over the past decade, planning approvals have generated more than £400 million in Section 106 and Community Infrastructure Levy contributions. These funds have supported projects including the Elizabeth Line, affordable housing in neighbouring boroughs, and local public realm improvements such as Finsbury Circus Garden and Greyfriars Square.
Planning approvals in 2025 also included ten new public walkways aimed at improving pedestrian connectivity around Bishopsgate, Old Broad Street and Liverpool Street. These new routes are intended to ease congestion, enhance station access and reveal new views of City landmarks.
The City currently has 20 major office schemes under construction, including eight towers, which are expected to generate thousands of new jobs.
