Birmingham is one of the most popular new UK office destinations amongst financial firms leaving London, according to new data from property services firm JLL.
The research showed that Birmingham attracted the second most square footage of inward investment from financial institutions between 2015 and 2024 (133,587 sq. ft), closely following Manchester at 153,830 sq ft. Notable businesses that have moved into the city include HSBC, Deutsche Bank and Goldman Sachs.
Business development, customer support, sales, IT, technology, and HR roles are amongst the functions firms are moving out of London and to other cities.
JLL’s data highlights a clear economic incentive for this migration, with operational costs in Birmingham proving up to 35% lower than in the capital. This substantial difference enables financial institutions to optimise expenditure and is directly translating into increased demand for regional office space.
Kelvin Craddock, head of tenant representation in the Midlands at JLL, said: “Birmingham’s growing appeal to financial services firms is no coincidence – it reflects a broader shift in how businesses are thinking about cost, talent and long-term growth. The city’s connectivity, access to highly skilled labour and more affordable operating environment make it a compelling proposition.
“Over the past decade, we’ve seen a number of firms choosing Birmingham not just as a satellite location, but as a strategic hub, and we anticipate this trend to continue. This influx of investment is already energising the city’s commercial property market and will have a transformative effect on the broader regional economy in the years to come.”
Surging rents in London and changing ways of working have meant that a growing number of firms are considering how they can best deploy roles across the country. Birmingham offers a more affordable alternative, and JLL anticipates that its popularity amongst financial services firms will continue to grow.
“Looking ahead, a key priority amongst the city’s real estate community must be to meet this demand with abundance of high-quality, sustainable and client-centric office space,” Craddock added.
Register now to receive our free daily business news emails…