Birmingham and Manchester are now competing over the UK’s “second city” ranking, as more businesses and professionals chose to move beyond the London borders.  

In terms of property investment, both Birmingham and Manchester are luring business people away from the British capital, with 7,620 people leaving London for Birmingham and 10,200 people heading towards greater Manchester and away from the capital, according to official figures from the Office for National Statistics and Reach PLC. 

Both cities have seen a surge in business investment, with several companies translocating their headquarters from London to Manchester and Birmingham due to more affordable rent prices. Later this year, Amazon is due to open its first office in Manchester, while the transformation of MediaCityUK has enticed leading brands such as ITV and Kellogg’s. Birmingham is also growing increasingly popular, with Big Four accounting firm PwC announcing the new takeover of commercial space while BBC Three have shifted a part of their business to the West Midlands city. 

Population in the two cities is also on the rise. Cushman & Wakefield expect Manchester’s population to expand by 56,000 by 2034. Birmingham’s population is also forecast to increase by 7.2% (81,400) between 2018 and 2028, according to Birmingham’s city council. 

Although population is set to rise at a faster rate in Birmingham than in Manchester, Manchester holds a higher average house price, signalling that property demand is higher in the north-western city. Manchester was also awarded the title of best place to live in 2018 in the UK, according to The Economists’ ‘Global Livability Index’. 

In terms of rental yields, Manchester marginally outperforms Birmingham with an average of 5.55%, compared to Birmingham’s 4.61%. More people have also left London for Manchester, when compared to Birmingham. In spite of this, transport infrastructure enhancements in Birmingham are transforming the city which is becoming increasingly attractive to prospective relocators, and this is reflected in the fact that Birmingham has a higher pace of population increase when compared to Manchester. 

When it comes to short-term investment, Manchester is the clear winner as it offers endless possibilities for development both to tenants and buyers, while also attracting numerous global firms and up-and-coming professionals – meaning more opportunities for commercial development. In the longer-term, Birmingham was found to be the more attractive option as it invites more room for growth in the future and a chance for property prices to increase further, while still allowing investors to buy into the market at a cheaper price.