How the rise in remote working could have a negative impact on UK growth

Independent

15-05-2025

The working from home boom may be failing to revitalise struggling UK regions and could even exacerbate existing inequalities, according to new research.
A study by researchers from several UK universities, including Southampton, St Andrews, Birmingham, De Montfort and University of Arts London, examined post-pandemic working habits and found that the anticipated boost to areas outside the south-east has failed to materialise.
While the rise of remote work initially offered a glimmer of hope for a more level playing field, the reality is proving more complicated.
The research reveals that most employees now favour hybrid working models, splitting their time between home and the office. This limits the potential for significant regional shifts, as high-skilled workers remain connected to their traditional workplaces.
The data highlights a stark contrast in working patterns across the UK. More than half of all workers (52 per cent) never work from home.
This figure drops dramatically for high-skilled workers, with only 29 per cent never working remotely. The majority of high-skilled workers who do work from home follow hybrid patterns, further solidifying the link to their physical workplace and potentially hindering the anticipated dispersal of economic activity to other regions.
This suggests that working from home, in its current form, is not driving a relocation of high-skilled jobs to areas in need of an economic boost. Instead, it may be exacerbating existing regional divides.
Professor Jackie Wahba, of the University of Southampton and the ESRC Centre for Population Change, said: 'Working from home is now a normal part of working life, with the potential to change where and how people work.
'It could offer major benefits, giving both employers and workers more choice and flexibility. But to achieve this, we must tackle key obstacles to residential mobility.
'It was widely believed that working from home would let high-skilled workers move further from their employers, opening up opportunities for less wealthy areas.
'But so far, it remains most common among higher earners in a few sectors, mostly near London and other major cities.'
She added: 'There is also little evidence on the net economic impact for local areas of these changes in working patterns. We need better data on who is working from home, how often, and in what roles.
'This will help policymakers give targeted support to more regions. Investing in transport links, fast broadband, schools, healthcare, green spaces, cultural venues, and affordable housing are as important as providing flexible work options in drawing and retaining skilled workers.
'Working from home isn't yet bridging the gap between regions. Policymakers, businesses, and local leaders need to act to ensure that job flexibility does not exacerbate inequality but is harnessed to support real, long-term regional growth.'
The research project, co-funded by the Economic and Social Research Council (ESRC) and the Ministry of Housing, Communities and Local Government, analysed data from the UK Household Longitudinal Study and Labour Force Survey.
It also involved interviews with businesses, regional governments and universities in Glasgow, Sheffield and Birmingham.
They found that in these 'second-tier regional cities', the advantages of working from home were seen as wider recruitment opportunities, more efficient use of office space, and the ability to attract workers to their regions because of lower living costs.
However, they also raised concerns about quieter city centres, weaker workplace culture, and the limited ability to work from home in many sectors.