Manchester again named top UK city for foreign investment after London in EY survey

Manchester has remained the UK’s most successful city for attracting foreign direct investment (FDI) outside the capital, according to the annual EY UK Attractiveness Survey 2026.

While the city-region saw a decline in the number of projects, mirroring a trend seen across much of Europe, it remained among the top 15 cities in Europe for FDI attractiveness.

The survey showed a nationwide decline in FDI projects in 2025, recording 730 in total, a 14% decline. Only London, Northern Ireland and Wales saw an increase in foreign investment since 2024; in the North West the number of projects from from 86 in 2024, to 51 in 2025.

Despite the fall in foreign investment for the UK, the country saw the second greatest number of projects in 2025 across Europe, behind only France, and ahead of Germany. London was named the second most attractive city for FDI projects, after Paris.

Hilary Heap, EY’s North Market leader, commented:

“While the North West saw a year-on-year decline in FDI projects, this was in keeping with both the UK and Europe-wide trends, with a variety of economic headwinds including subdued growth and geopolitical uncertainty weighing on growth.

“However, there remain reasons for optimism. Manchester retained its position as the UK’s leading city for FDI outside London, which is testament to the city’s diverse business community and its significant potential.”

Looking ahead, EY’s investor sentiment survey, which interviewed 360 international investment decision-makers in March and April 2026, revealed a positive outlook for the coming years. More than half those surveyed said they expect the UK’s investment attractiveness to increase over the next three years, with 19% anticipating a significant increase.

Peter Arnold, EY UK Chief Economist, said:

“While London outperformed the broader European trend in 2025 and remains a highly attractive global investment hub, FDI activity across much of the UK was more subdued. No English region outside the capital recorded growth, and while Wales and Northern Ireland saw year-on-year increases, their overall totals remain significantly below the UK’s traditional investment hubs. This widening gap between London and the rest of the country risks reinforcing long-standing regional disparities.

“Against a backdrop of more cautious global investment flows, the UK must sharpen its focus on where it can compete most effectively and deliver long-term value. Addressing structural barriers – including high energy and labour costs – will be critical to better insulating the economy from ongoing uncertainty. Strengths in sectors such as technology, professional services and financial services remain a clear advantage, but this needs to be complemented by stronger performance in high-value, productivity-enhancing areas such as advanced manufacturing and life sciences. Strengthening regional investment propositions through improved connectivity, workforce capability and a stronger pipeline of investable projects will be essential to translating investor interest into sustained, nationwide growth.”