_Challenging regional brain drain: how Manchester is retaining talent

For years, regional cities like Manchester, Leeds, and Birmingham have battled the “brain drain” – the phenomenon where graduates leave university towns for the perceived allure of London or even international opportunities. However, times are changing, and today, there’s a real opportunity for cities outside of London to not only retain their graduates but also attract top talent and businesses.  

As highlighted in our latest UK Cities DNA paper, Stemming the flow: The role of housing in reversing regional brain drain, reversing the brain drain requires more than simply offering good jobs. It takes a coordinated effort to provide a liveable, vibrant environment that supports both career growth and quality of life. 

Graduate retention in Manchester  

In recent years, Manchester and other regional cities have made significant progress in retaining their graduates. The retention rates in many of these cities now exceed 50%, which is a vast improvement from where we were a decade ago.

However, we cannot take this for granted. While a strong job market is crucial, retaining talent is about more than just employment—it’s about creating an environment where people want to build their lives. 

We’re seeing a shift in attitudes among younger professionals. Gone are the days when London was the default destination for bright graduates. The cost of living in the capital, combined with high student debt, has made many reconsider their options. Today’s graduates are increasingly looking at where they can achieve a good work-life balance, where housing is affordable, and where they can access a rich cultural and social life. Manchester is ticking many of those boxes, but we have to continue building on these strengths. 

The role of jobs and housing in retaining talent 

Employers are key drivers in this conversation. Businesses are starting to recognise the value of expanding outside of London, and Manchester is increasingly becoming a go-to location for companies looking to grow. They see the talent pool here, and they’re making conscious decisions to invest in the city. As companies move to or expand within Manchester, they are demanding high-quality office spaces that reflect the evolving expectations of today’s workforce. Companies and employees want spaces that foster collaboration, innovation, and wellbeing. 

The demand for flexible, modern, and community-focused housing has skyrocketed. Graduates today are looking for housing that enhances their lifestyle. Developments offer an appealing package, from gyms and communal areas to organised social events that foster a sense of community. For many, these developments are the perfect bridge between university living and long-term home ownership, offering flexibility and convenience at a time when graduates are still establishing themselves professionally. 

Quality of life is key  

Of course, housing and jobs are just part of the equation. Graduates are increasingly looking for cities that offer a high quality of life, which means investing in the social infrastructure that makes a city vibrant. Here in Manchester, we’ve seen a real transformation in this area. The city is becoming more diverse, and that diversity is driving a cultural renaissance. With international students and professionals choosing to stay in Manchester, we’re seeing a blending of cultures that enriches the city’s food scene, nightlife, arts, and entertainment. It’s these factors that really make a city feel like home for people from all walks of life. 

Additionally, Manchester’s universities play a significant role in retaining talent. We have a growing number of international students, many of whom decide to stay in the city after graduation. This influx of talent adds to the diversity of Manchester's workforce, and it’s something that businesses and developers are increasingly factoring into their plans. 

Public and private sector collaboration 

One thing that has become clear is that no single sector can reverse the brain drain on its own. Collaboration between the public and private sectors is essential. We’ve seen successful examples here in Manchester, where the city council, businesses, and developers have worked together to create mixed-use developments that combine office spaces, housing, and retail in a way that fosters a sense of community. These developments are often located in highly walkable areas, with easy access to transport links, parks, and offices, which is ideal when graduates are deciding where to settle. 

We need to ensure that we are investing in transport infrastructure, green spaces, and entertainment options that contribute to a high quality of life. These investments make a city attractive not only to graduates but also to the businesses that want to tap into a thriving local economy. 

Looking to the future 

The challenge of reversing the brain drain is ongoing, but we’ve already made great strides. Graduates today are more open to the idea of staying in Manchester or other regional cities because these places offer the whole package: good jobs, affordable housing, and a vibrant social scene. The days when London was the only option for ambitious graduates are fading, and regional cities like Manchester are stepping into the spotlight. 

By continuing to invest in our social and economic infrastructure, we can not only retain our graduates but attract new talent from across the UK and beyond.  

Explore our latest UK Cities DNA research  

Our UK Cities DNA research highlights what is currently impacting the commercial real estate landscape across the UK. Delve into how regeneration and residential development projects are crucial in creating attractive city centres where people want to live and work. 

How can our Manchester team support you?  

As one of Manchester’s most experienced property consultants in the city, our team advise on all commercial property assets in the North West of England. The team in Manchester has established an exceptional reputation in its local marketplace as leading commercial property consultants. Get in touch to find out how we can support you.