A long shadow: a new 300m City tower could impact rights of light

Quick Read | Real Estate | October 2026

Key takeaways

• Plans for a new 300m, 70-storey tower at Exchequer Court, next to the Gherkin, are a reminder that rights of light remain a live issue in the City.
• Planning permission does not cancel a neighbour's right to light. It is a private property right, separate from planning.
• Courts can still stop or cut back a building, but they have wide discretion to award money instead – and recent awards have been significant.
• Statutory override powers can turn a right to stop development into a right to compensation only, so early engagement matters.
• The key message: whether you are building or neighbouring, rights of light are best handled early, and are usually resolved through negotiation rather than litigation.

What has happened?

The Financial Times reports that insurer AmTrust Financial Services, working with Canary Wharf developer Sir George Iacobescu, plans to demolish Exchequer Court and replace it with a 300m tower offering around 1m sq ft of offices. Public consultation is due this month, with a planning application to the City of London Corporation expected early next year and completion targeted for 2033.

The scheme sits in the City's tall-building cluster, near the approved 309.6m One Undershaft (now One London). With the City Plan 2040 targeting at least 1.2m sq m of new office space, more schemes of this scale are likely.

Why does it matter? Injunction or damages? 

Where a development causes an actionable loss of light, the starting point is that the neighbour can seek an injunction. The courts have often taken a more flexible approach though and allowed damages to be paid instead. The factual matrix makes all the difference.

A recent High Court case involving the Bankside Yards scheme in Southwark shows both sides of the coin. There the court refused to order changes to an occupied tower, but awarded two flat owners substantial damages (but much less than they had asked for!) – though there were many unusual aspects to that case.

Section 203 overrides. Under section 203 of the Housing and Planning Act 2016, where land is acquired or appropriated by a qualifying authority for planning purposes, development can proceed despite interfering with rights of light. Affected neighbours then lose the ability to seek an injunction and are limited to statutory compensation, broadly based on the drop in value of their property.

What should clients do now?

Neighbouring owners and occupiers should consider getting their lawyers to check the title and lease documents for rights of light, and for any reservations allowing the landlord or neighbour to build.

If there are breaches of rights to light, engage early and reasonably: an unrealistic stance may encourage use of section 203, leaving you with lower compensation. Keep any objections measured and act promptly – delay can weaken a claim to an injunction.

Conclusion

A 300m tower in the City will cast a long shadow, but loss of light rarely needs to end in a courtroom. Clients who know their rights, take advice early and engage constructively are in the strongest position, whether they want to protect their light or unlock a development.

Stephenson Harwood can help: our real estate and property litigation teams advise owners, occupiers, developers and investors on rights of light – from title review and surveyor coordination to negotiating releases, section 203 strategy and disputes.