The UK’s economic centre of gravity is shifting, and Manchester and Birmingham are key cities set to benefit. For decades, London has dominated the UK economy. But that picture is beginning to change.
A new analysis from recruitment firm Robert Walters, reported by The Times, forecasts that as many as 90,000 white-collar jobs could move out of London over the next five years as part of UK Prime Minister, Andy Burnham’s ‘devolution’ strategy, with Manchester, Birmingham and Leeds expected to be the biggest beneficiaries.
The potential economic impact is significant. Robert Walters estimates the relocation of these roles could generate around £9 billion of additional economic activity across regional economies, rising to as much as £15 billion once the wider economic impact is taken into account.
For property investors, however, the most interesting part of this story isn’t simply where the jobs are going.
It is where the people filling those jobs will live.
When employment moves, rental demand follows
The relationship between employment and residential property is fundamental.
When businesses expand into a city, they don’t just need offices. They need people, and those people need somewhere to live.
More professional jobs can mean:
- More young professionals moving into the city centre
- Greater demand for high-quality rental accommodation
- More spending in local businesses and amenities
- Stronger demand for well connected city-centre locations
- Greater competition for desirable rental properties with luxury amenity
- Increased potential for rental growth over time
This creates an important investment dynamic.
Employment growth supports population growth. Population growth supports rental demand. Sustained rental demand can support both rental income and long-term property values.
That is why investors should look beyond today’s property price or rental yield and consider what is happening to the wider economy around an asset.
Manchester: already a second centre of economic gravity and property investment
Manchester is particularly well positioned to benefit from this shift and is already established as one of the UK’s leading investment cities, with Greater Manchester recording average annual economic growth of 3.1% between 2015-2023 – more than double the UK average of 1.5% (GMCA, January 2026).
Robert Walters forecasts that 22,500 jobs could move to the North West by 2031, with Manchester expected to be one of the principal beneficiaries. The report estimates that this could contribute up to £2.25 billion to the regional economy. Since the start of his term as Prime Minister, Burnham has vowed to make the North just as politically important as London, and plans to make it easy for MPs to relocate to Manchester, where he has set up “No. 10 North”.
Manchester is already ahead of this curve, having spent years developing into a major employment, education, technology and cultural hub, attracting multinational businesses and a growing professional population.
That combination is important for residential investors because Manchester is not dependent on a single source of housing demand. It has a student population of 100,000 and a growing talent pool of graduates transitioning into professional careers, young professionals relocating for work and an increasingly international workforce, creating a strong and diverse rental market.
Vita Living Circle Square, Manchester
That demand is reflected in the performance of Vita Living Circle Square, located in the heart of Manchester city centre.
Following the success of the first tower, the second North Tower has now been launched to individual investors for the first time. The 35-storey development is fully furnished and positioned specifically around the needs of modern city-centre professionals, with amenities including co-working spaces, a gym, resident lounges, private dining and extensive social spaces.
Most importantly for investors, the development is already demonstrating exceptionally strong occupancy and rental performance, achieving 98.5% occupancy and rental yields of up to 7.5%.
A property located in the highly sought after Circle Square district, a vibrant employment hub within a city attracting businesses, jobs and skilled workers, the development has access to the very demographic that drives demand for professionally managed, amenity-rich rental accommodation.
For investors, that creates the potential for income today while positioning the asset within a city with longer-term economic growth prospects.
Birmingham: a regional powerhouse strategically located in the centre of England
Birmingham is following a similar trajectory and is still at the start of an exciting growth curve.
According to the Robert Walters analysis, up to 18,000 relocated positions could end up in the Midlands, principally Birmingham, potentially delivering an estimated £1.8 billion economic boost.
The city already has a substantial presence of major employers and professional services firms including HSBC, Goldman Sachs and PwC. As employment opportunities continue to broaden, Birmingham’s appeal extends beyond commuters and established residents to a new generation of professionals looking for an alternative to London.
Birmingham offers something particularly attractive to both businesses and employees: many of the characteristics and amenities of a major UK city, without London-level costs. The government’s High-Speed 2 railway (HS2) will further enhance this tenant appeal, cutting the train journey time between London and Birmingham to just 49 minutes.
That affordability advantage can help businesses reduce operating costs while giving employees access to a comparatively lower cost of living, one of the factors Robert Walters identifies as supporting the growing appeal of regional cities.
Edition Birmingham
This is the market in which Edition Birmingham is positioned.
Located in Birmingham city centre, Edition will be the city’s most luxurious residential address when it completes from 2027. Designed around the growing demand for high-quality urban living, the development combines residential apartments with extensive lifestyle and wellness amenities.
The investment case is underpinned by the wider Birmingham market: the city’s growing employment base, constrained supply of quality residential property and strong rental demand.
Current Birmingham forecasts point to 22.2% rental growth and 19.9% house price growth between 2026 and 2030, while the development forecasts a projected rental yield of 6% and projected capital growth over the build period.
Following the sell-out success of the first tower within the development, Park Residence, which has reached its full height in the construction process, the second, taller building, Centenary Tower, is now available to investors.
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To find out how property investment in Manchester and Birmingham could work for you, contact us today to speak to a UK property consultant.
Select Property is a leading UK developer and investment specialist with over 22 years experience and global offices in Manchester, Dubai, Shanghai, Hong Kong and Riyadh. We develop, sell and manage luxury residential property in the UK’s strongest performing cities, offering a fully managed experience for domestic and international investors.