For years, the argument around the North of England has centred on the same question: when will economic power finally move beyond London?
Now, a new answer is taking shape.
Based in Manchester, No.10 North is already operational, establishing a regional arm of the Prime Minister’s central government operation and bringing economic growth and devolution closer to the region.
No.10 North represents a shift in how decisions affecting the North are made, with greater focus on Manchester and the wider region. Its significance lies in the influence it could have on the city and the potential impact of that shift on investment, development and the wider Northern economy.
What is No.10 North?
At its simplest, No.10 North is the Manchester-based arm of the Prime Minister’s central government operation, designed to strengthen regional decision-making and shift some economic power away from Westminster.
The government established it as part of its July 2026 machinery-of-government changes, describing it as the “engine room” of devolution and economic growth.
More importantly, specific policy responsibilities are being transferred into the new structure. These include local economic growth and devolution strategy, alongside local economic growth policy previously held by HM Treasury.
No.10 North reflects a wider shift in decision-making power towards the North, with Manchester taking a more prominent role in regional policy and investment.
No.10 North is Already Up and Running
Despite the attention surrounding its creation, there is no need to wait for No.10 North to arrive. It is already here.
The current base is Heron House in central Manchester, which has also housed GCHQ operations since 2019. Andy Burnham has already worked from the Manchester base and the Prime Minister is expected to work from No.10 North at least one day a week, subject to government business.
The long-term plan is centred around a new Government Digital Campus in Ancoats, expected to provide around 890,000 sq ft of government space and accommodate thousands of civil servants. Completion is currently expected around 2032.
No.10 North is expected to develop in two stages.
2026 onwards: No.10 North operates from Heron House.
By around 2032: Manchester’s larger government campus is expected to provide a permanent base for a significant northern government presence.
The planned government campus represents the longer-term development, with its scale and permanence likely to have a greater influence on Manchester’s property market.
Why Manchester?
The choice of Manchester is hardly accidental.
Over the past two decades, the city has developed into one of Britain’s strongest economic centres outside London, with major universities, technology businesses, professional services, MediaCity, financial and legal firms and a substantial development pipeline.
Manchester provides an opportunity to develop a different model of government, with greater decision-making capacity based outside London. As economic activity and investment continue to develop across the North, No.10 North brings a greater government presence into the region and places Manchester closer to national economic and policy discussions.
The Economic Effect Could Start with Jobs
One of the clearest immediate benefits is employment.
Civil servants working in London have been offered relocation packages to encourage them to move to the North. The aim is to move existing government employment and expertise northwards, bringing skilled and relatively stable roles into the region.
Relocating employees also contributes to the wider local economy through housing, transport, retail, restaurants and professional services. As the workforce grows, businesses that support these employees can also expand, creating a wider multiplier effect across the regional economy.
From Government Office to Economic Cluster
There is another potential effect that is more interesting for investors.
A sizeable government presence can attract an ecosystem around it. Government contractors, consultants, lawyers, accountants, technology firms, recruiters, research organisations and public affairs businesses all have reasons to operate closer to decision-makers.
This could support the growth of a wider government and professional services cluster in Manchester, bringing more businesses and specialist roles into the city.
The investment story therefore extends beyond the number of civil servants working at No.10 North. The wider economic activity generated by those employees and the businesses that work alongside government could have a greater influence on Manchester over time.
If Manchester becomes a place where national policy is regularly discussed and decided, proximity to government could become more valuable for businesses too.
What Could No.10 North Mean for Manchester’s Economy?
The potential impact can be viewed across several areas.
Employment: More government roles mean more workers earning and spending in Manchester.
Business activity: Companies seeking government contracts or closer access to policymakers have an incentive to establish a presence in the city.
Professional services: Legal, financial, consultancy, technology and communications firms could all benefit from a larger government ecosystem.
Investment: A stronger national government presence reinforces Manchester’s position as an important economic centre.
Political influence: Manchester becomes part of the machinery making national decisions rather than simply being a city affected by them.
What Does No.10 North Mean for Manchester Property?
This is where the story becomes particularly interesting for investors.
No.10 North does not automatically mean Manchester house prices will surge. That would be far too simplistic.
Instead, it potentially strengthens several of the structural factors already supporting demand across the city’s property market.
Government relocation introduces another professional demographic into an economy that already attracts students, graduates, young professionals, corporate workers and international employees.
The rental market may see some of this additional demand.
Someone relocating from London may rent before deciding whether Manchester is where they want to settle permanently. Over time, some renters may become buyers, creating another layer of housing demand.
Central Manchester, Ancoats and the city’s main transport corridors are likely to be among the areas most closely connected to this demand, although the wider impact would depend on the scale of employment growth across Greater Manchester.
Why Ancoats Could be One to Watch
The planned Government Digital Campus gives Ancoats an additional employment anchor on top of its existing regeneration.
An area once dominated by industry has already become one of Manchester’s most prominent residential neighbourhoods. The potential combination of residential development, offices, government employment, technology and proximity to the city centre creates an increasingly diverse economic base.
For investors, the wider economic activity surrounding No.10 North may be more significant than proximity to a government building alone.
The strongest locations tend to be those supported by several sources of demand rather than one.
The Impact Should Not Stop at Manchester
There is a danger of viewing No.10 North as a Manchester-only project. Its wider purpose is to support devolution and economic growth across the North and beyond, giving regional authorities more influence over areas such as housing, planning, transport, skills, infrastructure and economic development. This could have implications for cities including Liverpool, Leeds, Sheffield and Newcastle.
The ambition extends beyond strengthening Manchester, with greater regional control intended to influence how economies across the North develop.
The wider Northern economy has historically operated in the shadow of London and the South East. Greater regional decision-making could influence investment, infrastructure, business activity, employment and population growth, with housing demand forming part of that wider economic picture.
No.10 North → government employment → professional services → business activity → population growth → rental demand → housing demand → greater economic importance
Manchester is effectively becoming the first major test of that model.
No.10 North still has to prove itself.
A key consideration is whether genuine budgets and decision-making authority move north or whether Manchester simply gains another government office. The transfer of economic growth responsibilities is likely to have a greater impact than the physical presence of ministers.
There is also the practical challenge of relocating civil servants. People have mortgages, families and established lives in London, which helps explain why relocation packages are being offered.
Then there is housing affordability.
If No.10 North succeeds in attracting significant numbers of high-earning professionals to Manchester, rental and purchase demand could increase. This could create additional opportunities for investors while also adding to affordability pressures for existing residents.
The Bigger Picture for the North
Ultimately, No.10 North Manchester is an experiment in changing Britain’s economic geography.
The current office at Heron House is only the starting point. The much larger Government Digital Campus expected in Ancoats by around 2032 points towards a significantly bigger northern government presence.
If the project works as intended, Manchester could take on a greater role as a link between national government and regional economies, building on its position as the North’s largest economic centre.
Investors will therefore be watching the extent to which economic decision-making moves out of London.
The number of people working at No.10 North is only one measure of its impact. Greater movement of economic decision-making could have implications for Manchester, the wider Northern economy and the property markets within it, extending beyond the walls of Heron House.
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