After a turbulent interval of excessive inflation, rising taxes, Covid and ever-changing laws, the UK business property market is lastly exhibiting indicators of resilience.
Together’s new report, Cities in Focus 2025: Commercial Property Insights, has taken a deeper look into the place alternatives in the sector lie, highlighting a renewed sense of optimism.
Research we carried out for the report discovered that 89% of landlords are intending to stay in the business property sector by 2025, and round 1 / 4 might be reinvesting rental earnings from their present portfolios again into the market.
Back to the workplace
Demand for workplace house is on the rise; pushed by hybrid working fashions and companies in search of high-spec, versatile areas. According to our report, 82% of property professionals take into account workplace investments over the subsequent 5 years as a great alternative, with 16% anticipating income to develop by as much as 30% by 2030.
Despite two years of decline, retail gross sales too have now risen by 1.4%, totalling £517bn final 12 months alone. The first quarter of 2025 noticed continued progress of 1.7% year-on-year, and while challenges stay 76% of buyers we surveyed now see retail as a great long-term space of funding.
This goes past just the capital, as regionally too we’re seeing a shift. With the current announcement of a £15bn funding from the authorities into the UK’s transport infrastructure, we’re more likely to see an elevated concentrate on different hubs throughout the UK. In our report, we took a more in-depth have a look at three of those key regional cities; Birmingham, Manchester and Glasgow.
In Birmingham, 70% of pros advised us that they anticipate to see continued progress in the metropolis’s workplace and retail markets. The metropolis has a selected energy in its location. With glorious transport hyperlinks by the M6, M5 and M40 in addition to rail and air entry, it’s completely positioned for retail and logistics firms – which have boomed with the rise of e-commerce.
Northern powerhouse
Manchester, the North’s business powerhouse, is prospering throughout a number of business sectors. Retail stays a key focus for the metropolis, with 77% of pros viewing it as a stable alternative, and an additional 40% stating that they favour semi-commercial property. Buy-to-let funding in the space can be on the rise—Together’s personal buy-to-let lending figures present that rental property funding in Manchester jumped 92% year-on-year to £52.5m in 2024.
Even additional north, Glasgow is present process its most important regeneration in half a century. High streets are being revitalised, and new chain openings are rising footfall – Glasgow is residence to Scotland’s longest buying avenue, Dumbarton Road, which boasts a wealth of cafes, retailers and eating places. Our analysis reveals that 80% of potential buyers are assured in the metropolis’s retail market, whereas 98% are actively contemplating semi-commercial property alternatives.
For brokers, there’s a lot to capitalise on. Those who take the time to know the nuances of regional markets and rising asset courses, equivalent to semi-commercial properties, scholar lodging and logistics, might be finest positioned to information purchasers in the direction of high-potential investments.
Brokers who take the time to study the business property might be properly positioned to capitalise on this new resurgence and assist their purchasers.
Michelle Walsh is head of intermediaries at Together
