Air-Rights Buildings

The UK is experiencing a growing demand for new developments, driven by commercial requirements and the housing market. However, as urban areas become more densely populated, available land, both greenfield and brownfield, is becoming scarce. Additionally, regulatory protections such as conservation area status and listed building designations can complicate the process of site clearance for redevelopment. Consequently, there is a rising trend towards exploring development opportunities below existing properties, in basements, and above them, a practice often referred to as ‘overbuilding.’

Typically, property owners also hold rights to the airspace above their properties, which they can potentially develop, subject to obtaining planning permission. These rights can be sold or leased, enabling the construction of ‘air-rights’ buildings. These structures are often erected above existing infrastructure like roads or railways or above low-rise buildings such as shopping centres, particularly in urban areas where space is limited.

Developing above-existing assets eliminates the need for additional land, making it an attractive option for high-density urban environments. Air-rights buildings can enhance public transport ridership, reducing congestion and emissions, thus offering a more sustainable approach to urban development. Moreover, they may provide financial incentives for asset owners.

The concept of air-rights buildings gained traction in the UK with the construction of One Embankment Place, a commercial office building above Charing Cross station, completed in 1991. Since then, several other notable air-rights developments have emerged, including Alban Gate at London Wall and Cannon Place above Cannon Street Station.

However, constructing air-rights buildings poses significant challenges, including negotiations with multiple property owners, considerations for maintaining existing facilities, structural concerns, and ensuring safety and security. Despite being more complex, expensive, and risky compared to ground-level construction, there is renewed interest in air-rights developments due to the scarcity of available land.

In the USA, air rights are often traded as Transferrable Development Rights (TDR), allowing for denser development above existing buildings. In the UK, reports have suggested that building above public assets, such as railways, could potentially provide space for hundreds of thousands of new homes.

Recent initiatives, such as a funding deal between Homes England and Apex Airspace Developments, indicate growing interest in utilising rooftop space for residential development. Overall, air-rights developments offer a promising solution to urban housing challenges, leveraging existing infrastructure to create additional living space.