Image
Property & Real Estate -
Birmingham vs. Manchester: Where does the city stand?
Gary Moore, director of real estate finance, shares the highlights from a recent roundtable's engaging debate comparing Birmingham to Manchester in terms of property investment, regeneration, and long-term economic growth.
One of the most talked-about themes at our recent Birmingham roundtable was how the city compares to Manchester – particularly when it comes to regeneration, planning, and attracting investment. While both cities have their strengths, the conversation highlighted what Birmingham can learn from Manchester’s approach, and what it needs to do to strengthen its position as a leading regional centre.
Manchester has often been held up as the model for regional success, particularly its ability to attract investment and deliver large-scale regeneration. However, Birmingham has its own strengths, and the discussion explored how the city can capitalise on its potential while learning from the successes of its northern counterpart.
While Manchester was recognised for making impressive strides, there was also strong confidence in Birmingham’s future. The discussion was not about competition, but about what Birmingham can do to accelerate its own growth and create an identity that stands on its own terms.
The regeneration challenge in Digbeth
One of the most widely discussed topics was the ongoing redevelopment of Digbeth. With the BBC’s move to the area, there is renewed optimism that this will kickstart further investment. However, as several attendees pointed out, Digbeth has been seen as ‘up and coming’ for over 30 years – so why has progress been so slow?
Unlike Manchester, which has rapidly transformed areas like Ancoats and Salford Quays into thriving hubs of business and residential activity, Birmingham’s regeneration projects have taken longer to materialise. The roundtable highlighted some reasons, including fragmented land ownership, slow planning approvals, and a less-defined long-term vision for the area’s development.
There was consensus that if Birmingham wanted to keep pace with Manchester regarding regeneration, it must take a more coordinated and strategic approach. The BBC’s arrival is a significant step forward, but more needs to be done to ensure that investment flows into the wider area and that development happens at scale.
HS2 is either a game-changer or a missed opportunity
HS2 has been a focal point for Birmingham’s economic ambitions, and its potential benefits were a key topic at the roundtable. There was widespread agreement that improved connectivity to London and beyond would increase Birmingham’s appeal as a business hub. However, concerns were raised about whether HS2 will help Birmingham retain talent or make it easier for workers to commute to London.
The key takeaway was that Birmingham must not rely on HS2 alone as a growth driver. Instead, the city must focus on strengthening its own employment base, ensuring that people who come to Birmingham to live also have compelling reasons to work and invest here.
Lessons to learn from Manchester’s planning process
One of the biggest challenges discussed was the planning system. Many attendees felt that Manchester had developed a reputation for being more efficient and investor-friendly, with a clearer framework for regeneration projects and a more collaborative approach to working with developers.
Birmingham, by contrast, has faced criticism for its slower planning processes and inconsistencies in Section 106 agreements. A more streamlined and predictable system would make the city more attractive to investors. There was a strong view that Birmingham could benefit from adopting some of Manchester’s approaches to planning – ensuring that approvals happen faster and that there is greater clarity around development expectations.
It was also noted that Birmingham has its own strengths. Compared to Manchester and London, the city's affordability remains a major selling point, and it continues to attract businesses looking for a well-connected location with a strong talent pool.
Business investment and the local property market
Another area where Manchester has seen significant success is in attracting businesses, particularly in media, technology, and professional services.
The relocation of the BBC to Salford was a defining moment for Manchester’s transformation, helping to establish it as a leading city for creative industries. The BBC’s move to Digbeth presents a similar opportunity for Birmingham, but the roundtable discussion made it clear that this must be part of a broader strategy to bring in more businesses.
If Birmingham can attract further corporate relocations, particularly in emerging industries, it will create a stronger demand for commercial and residential property, supporting the city’s long-term growth.
Final thoughts on what the experts think about Birmingham’s future
Despite some challenges, the roundtable discussion reinforced confidence in Birmingham’s future. The city has unique strengths – its central location, strong universities, a diverse economy, and ambitious infrastructure projects.
While Manchester has set a high standard for regional growth, there was consensus that Birmingham has the potential to chart its own path, building on its strengths and ensuring that investment in regeneration, planning, and attracting businesses remains a top priority.
The key takeaway from the discussion was not that Birmingham must ‘compete’ with Manchester but that it should focus on its own strengths, accelerate its development pipeline, and create a more dynamic and efficient property market. By doing so, it can ensure that it remains one of the most exciting and investable cities in the UK.
The views and opinions expressed during the roundtable are those of the individual participants and do not necessarily reflect the official policy or position of Arbuthnot Latham.
Further reading
Section 106: Unlocking development or holding Birmingham back?
A recent roundtable discussion among brokers highlighted that while Section 106 obligations are essential, they need improvement for Birmingham's property market to thrive. Angela Niering-Wren, senior commercial banker from our real estate finance team, shares a summary of the conversation.
Birmingham property landscape: Boom, balance, and bottleneck
Angela Niering-Wren, senior commercial banker from our real estate finance team, recaps the discussion on Birmingham's investment appeal, economic shifts, sustainability needs, and planning constraints at a roundtable with Colliers International.
Subscribe to our latest insights
Sign up for insights from our experts and partners on the property market.
Related services