C&W: Regional office market driven by national Plan for Change

Cushman & Wakefield highlight the potential impact of the government’s Plan for Change on the UK’s regional office market. The Plan aims to shift the Civil Service property footprint by relocating roles from London to regional hubs.

By 2030, there will be a reduction of 12,000 civil servants in London. The move could release around 3.3 million sq ft of space in London by that time, saving taxpayers £94 million annually by 2032.

Areas set to benefit include Birmingham, Leeds, Cardiff, Glasgow, Newcastle and Tyneside, Sheffield, Bristol, Edinburgh, and York. Additionally, the government announced plans to establish three new regional campuses in Manchester, Abderdeen and a third unnamed location.

Cushman & Wakefield predict that these plans are “poised to have a significant impact on the regional office market.”  It notes that a government presence in a city can have a wider multiplier effect, stimulating local spending and driving investment in public infrastructure and the public realm. When civil service roles are relocated to city centres, local councils and developers may respond by enhancing the surrounding area to attract workers and visitors.

C&W figures show that, following a sharp post-pandemic rebound in 2021 and a peak in 2022, annual take-up in the Big Five regions (Birmingham, Bristol, Edinburgh, Leeds, and Manchester) has decreased but remained above 300,000 sq ft through 2023 and 2024. In Q1 2025, take-up reached approximately 161,400 sq ft, which already reflects 50% of the 2021–2024 annual average. If this momentum continues throughout the year, 2025 could mark a post-Covid high for the sector.