_The impact of a Labour government on Manchester’s commercial real estate market
I've been reflecting on the recent change in the UK government and what it might mean for our city. With Labour now in power, there's been a lot of speculation about how this shift will impact urban planning, housing, transportation, and the wider commercial real estate landscape. There are some key opportunities and challenges ahead for Manchester.
A strong foundation in Manchester
Manchester has been a Labour-led city in my lifetime. Even under the Conservative government, we had a unique situation where the city worked closely with Westminster. This was led by Sir Howard Bernstein and Sir Richard Leese and they worked collectively to rebuild and reposition the city.
More recently saw the relationship with George Osborne when he was Chancellor. Through Osborne’s devolution measures, Manchester gained more control over local governance, giving the city the power to direct regional funding and development in ways that suited our needs.
Now, with Labour in government, I’m hopeful that this alignment between local and national policies will continue to bring positive changes. This includes their desire to grant further powers back into local government. There’s potential here to build on the foundations already laid, allowing Manchester to tackle some of its most pressing challenges.
Will a new government drive positive change in Manchester?
With Labour in power, I believe we could see some real progress on issues like regional autonomy and planning reform. While it’s still early days, I’m optimistic that this new administration will continue to empower local authorities to drive forward changes that matter, especially when it comes to housing, infrastructure, and sustainability.
Tackling the housing crisis in Manchester
One of the biggest challenges to all regional cities, and Manchester is no different, is the availability of affordable residential for young professionals within walking distance of the city. Manchester is ahead of the curve in tackling this, endorsing schemes underway in Prestwich/Chorlton/Wythenshawe/Victoria North that will deliver thousands of homes for sale and rent, still within a short commute of the city centre.
Transportation infrastructure
For me, one of the most urgent issues for Manchester’s commercial growth is transportation. This issue is much wider than Manchester. Transport for the North plans for a connected public transport linking all the Northern cities. Liverpool – Manchester – Sheffield – Leeds – Hull – Newcastle. It's estimated that if these improvements were implemented it would increase the northern economy by £118billion by 2050.
Our local buses are already being transformed with £2 fares, the return of night buses and electric vehicles since being taken back into combined authority control. The Metrolink has also been extended further. However, devolving powers over rail remains out of reach. It may require Labour to fulfil their manifesto pledge of re-nationalisation to make this possible.
As highlighted in our recent UK Cities DNA paper, Meet the new boss, same as the old boss?, improving public transport is crucial from a commercial perspective. Expanding our transport network would enable businesses to draw from a much larger talent pool.
Local autonomy is key to driving change
One of the things I’m most hopeful about is the prospect of increased local autonomy under Labour. Devolution has already given Manchester more control over our own destiny, but there’s still more that can be done. If the government trusts cities like Manchester to make decisions on housing, transport, and sustainability, I believe we can really tackle the challenges faced.
By giving the local authorities more control over the funds and policies that affect the region, tailored solutions that work for Manchester can be developed.
What this means for commercial real estate
In commercial real estate, the changes a Labour government could bring present both challenges and opportunities. Victoria North would be an ideal example of a new town with 15,000 high quality, energy efficient new homes of all tenures being planned, expanding an existing community. Walking and cycling routes and a new Metrolink station will deliver a sustainable and accessible lifestyle. Government funding would help speed progress and show what can be achieved by proactive forward-thinking regional cities like Manchester and would make the city an even more attractive destination for investors and businesses
As we look ahead, I’ll closely watch how the government’s plans unfold. The potential for investment in transport, housing, and sustainable development could open up new opportunities for businesses.
Manchester has the potential to become an even stronger hub for commercial real estate, offering businesses new opportunities to grow and thrive.
Explore our latest UK Cities DNA research
Our UK Cities DNA research highlights what currently impacts the commercial real estate landscape across the UK. Delve into what a new government means for UK Cities as a whole, the opportunity to review past performance and consider what to expect.
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