Little evidence that hybrid working has encouraged high skilled people to relocate to cheaper regions

A new report and series of policy briefings by a team of UK researchers suggest that the shift towards remote and hybrid working has not significantly changed where people live, nor has it helped to distribute talent more evenly across the country. Led by Professor Jackie Wahba OBE from the University of Southampton and Dr David McCollum from the University of St Andrews, the research was conducted by the ESRC Centre for Population Change and Connecting Generations, in collaboration with academics from the University of Birmingham, De Montfort University, and the University of the Arts London. The findings show that most remote workers continue to follow hybrid working patterns, splitting their time between home and the office while staying within commuting distance of major employment centres. This trend limits the potential to reduce regional inequalities or drive economic growth outside of London and the South East.

The researchers discovered that across the UK workforce, just over 52 percent never work from home. Among high-skilled workers, that figure drops to 29 percent, with the majority adopting hybrid working arrangements that still anchor them near urban job hubs.

Importantly, when high-skilled professionals relocate, housing factors—not job opportunities—are usually the primary motivation. This challenges the notion that remote work will encourage a more even spread of high-earning workers to underperforming regions. So far, this shift has yet to materialise and may not do so without stronger intervention.

The project was co-funded by the Economic and Social Research Council (ESRC) and the Ministry of Housing, Communities and Local Government. The researchers warn that without targeted policy action, remote working could actually worsen regional disparities rather than close the gap.

Using data from the UK Household Longitudinal Study and the Labour Force Survey, the research also involved interviews with stakeholders from local government, businesses, and higher education institutions in Glasgow, Sheffield, and Birmingham—three economically diverse regional cities undergoing changes in high-skilled employment patterns.

Interviewees cited benefits of home working, including broader talent pools, better space utilisation, and the potential to attract workers due to lower living costs. However, concerns were also raised about quieter city centres, weakened workplace culture, and limited remote work opportunities across many sectors.

There was consensus that regional issues such as low skills, economic inactivity, and poor-quality employment cannot be solved solely by attracting high-skilled professionals. Experts emphasised the importance of local workers both living and working in the region. This highlights the need to invest in local infrastructure and amenities to retain talent and support regional resilience.

The report also identifies critical gaps in data on how remote work influences where people live and work. The authors call for improved national surveys, richer local data, and more employer-focused research across different sectors.

Professor Jackie Wahba commented: “Working from home is now a routine part of working life and has the potential to reshape employment patterns and residential choices. It offers real benefits in terms of flexibility and work-life balance—but we must address barriers to residential mobility if we want these benefits to be shared more equally across the country.

“Many believed remote work would allow skilled workers to move further from city centres, boosting struggling areas. But in reality, it remains most common among higher earners in select sectors, typically clustered around London and other major cities.”

She added: “We still know too little about the local economic impact of these shifts. We need clearer data on who is working remotely, how often, and in what types of roles. This will allow policymakers to better support local areas and design more effective, targeted interventions.

“Improving transport links, broadband connectivity, schools, healthcare, green spaces, cultural amenities, and housing is just as important as flexible job options in attracting and retaining skilled workers. Without action, working from home could deepen—rather than reduce—regional divides. It’s time for coordinated effort from government, employers, and local leaders to ensure flexible working supports sustainable regional growth.”