Trowers & Hamlins Predictions for 2026

Authors – Katie Saunders, Steve Dunseath, Victoria Robertson, Paul Ellaby, Daniel Banks & Anna Metham

Life in Manchester in 2025 has not been without its fair share of unexpected twists and turns, with incredible high points and devastating low points as the city coped with the attack at the Heaton Park Synagogue. The strength and solidarity of the local people in supporting each other will, we hope, continue into 2026.

Manchester has always set itself ambitious targets to be a vibrant and attractive city for investment and heads into 2026 crowned as UK ‘s second best city and above London in the 2025 list. It’s the only city in the UK where the economy has grown over the last 3 years  and Trowers & Hamlins are delighted to be part of that growth trajectory, recently promoting Gill Hill, Nicola Almond and Adam Berman in their Manchester office to Legal Directors in key practice areas, real estate , real estate finance and litigation.

We predict that the legal market will grow again in 2026, with more firms keen to move into the city to secure a base and support their clients, as well as to advise clients moving their own teams into the city.

In 2025 we saw several large employers move their head office into the city, such as the Government Property Agency, and we anticipate that this trend will continue. That will put pressure on commercial office space but the Good Growth Fund announcements by GMCA at the end of 2025 to invest in the mixed-use regeneration projects bringing forward more office space through redevelopments such as Brook Street, the old Kendals department store and multiple former University of Manchester buildings, should relieve that pressure in the long term.

We predict there will continue to be a “flight to quality” for premium office space as businesses continue to have changing workplace needs and want to attract and retain talent.  However, with so few new schemes coming on stream in Manchester, query whether the demand, which shows no sign of slowing, can be met.

Manchester retains its reputation as a young person’s city with 16.4% of the population between ages 18 and 24 and we predict that the investment in housing for students and young people will increase especially since the current delays to obtain approval from the Building Safety Regulator for higher risk buildings over 18 stories look set to be unlocked  by the creation of  single construction regulator in 2026.

The need for more affordable and social housing is set to be a priority for 2026, having been recognised by GMCA and the Greater Manchester Housing Partnership, supported by the Housing First Initiative and included in the Good Growth Fund projects such as Victoria North, Prince’s Gate and Wythenshawe and taking into account the importance of developing new housing near to centres of employment.

We predict that 2026 will see Manchester cement its position as a leading tech hub for AI adoption across sectors. As data protection, ethical AI development, and algorithmic governance become increasingly critical for businesses, we anticipate growing demand for legal expertise to navigate the regulatory landscape, particularly as organisations scale their AI capabilities and grapple with questions of liability, IP ownership in AI-generated content, and compliance with evolving frameworks.

The city’s commitment to collaborative innovation, evidenced by initiatives bridging academia and industry, ensures that Manchester’s AI sector will continue to attract talent and investment, reinforcing its reputation as a city where technological advancement and commercial pragmatism go hand in hand.

The city has always been at pains to ensure that the acceleration of growth and regeneration does not leave local people behind. Therefore, we predict that the efforts to tackle homelessness in the city will be redoubled in 2026, along with the focus on stopping child poverty. LifeShare charity, an initiative supported by Trowers, is a key example of the efforts in city to help homeless and vulnerable people by adapting to the needs of the city.

The city will be hosting the BRIT Awards and fully opening the new Soho House to build on its reputation as a cultural capital, with continued investment into the creative district at St John’s.

2026 will not be without its challenges and we are preparing for the employment landscape to experience more changes as a result of the employment rights bill and potentially impede the natural entrepreneurship of the city.

Manchester is a city which overcomes adversity and with the extension of the Bee Network to trains to make it easier for people to work in Manchester we predict that opportunities to live and work in the city will still be attractive in 2026.