The best cities in the UK to start your new business

Throughout the 21st century, startup numbers have consistently risen by approximately 3% each year.

Notably, the first quarter of 2023 set a record for business incorporations in the UK, with 202,130 new businesses established, indicating a noteworthy year-on-year rise of 6.5%. This figure also signifies a remarkable 19.5% (39,966) increase in new business incorporations compared to the final 12 weeks of the previous year.

While identifying the 'best place to base a business' remains subjective and subject to change, these statistics highlight the ongoing vibrancy and growth within the UK's business landscape.

In this guide, we take a closer look at the 6 best UK cities for starting a business. From sectors and connectivity to office spaces and costs, we provide a detailed roadmap to help you navigate the entrepreneurial landscape.

Looking for a location for your startup? These are the best locations for you!

Choosing the best location for your business is of course, subjective. However, several UK cities stand out as current hotspots for diverse business ventures that we’re championing right now.

London is a global epicentre, Manchester rises as a tech powerhouse, and Edinburgh excels in finance and technology. Bristol embodies creativity, Birmingham is a Midlands business hub, and Glasgow offers a vibrant cultural-commercial mix. Cambridge thrives intellectually, while Newcastle, Leeds, and Liverpool showcase innovation, finance, and maritime heritage.

As opinions on the “best” location may vary, this document by the House of Commons Library provides a more in-depth insight into business growth in different areas of the UK.

Let's explore the unique advantages each city provides, keeping in mind that the ideal business hub depends on factors like sector focus, infrastructure, and lifestyle offerings.

London - London is a magnet for European headquarters, outshining any other city in this regard. Firmly established as the nation’s financial centre, the City is a mix of the traditional and modern.

Best Sectors: Tech, Finance, Creative Industries

Location and Connectivity: London provides access to over 8 million residents, and its comprehensive transport network ensures easy connectivity by road, rail, underground, air, and river, making it the most accessible city in Europe.
Office Space: With diverse options from coworking to private offices, greater London offers an expansive 26 million square meters of office space, providing a diverse range of locations and office types to accommodate organisations of all sizes.
Average Cost to rent per person, per month: £441 - £1,600

Manchester - Manchester is already home to some of the UK’s biggest legal firms. The country’s media powerhouses BBC and ITV Granada have also made the move to Media City in nearby Salford.

Best Sectors: Technology, Digital Innovation
Location and Connectivity: No matter where your offices are based, employees can make use of buses, trams and even the major international airport.
Office Space: From cosy coworking spaces to modern offices, the flexible office spaces available in Manchester cater to a diverse range of businesses, offering varying sizes and facilities. Whether you require a short-term base for a few days or a permanent home for you and your team.
Average Cost to rent per person, per month: £50 - £625

Edinburgh - Some of the biggest companies in the world have already put down roots in the city. This includes video game giants Rockstar and travel brand Skyscanner. Plus, several financial powerhouses have spent years in the city including HSBC, JP Morgan, the Royal Bank of Scotland and Aegon.

Best Sectors: Technology, Finance, Tourism
Location and Connectivity: With a rich cultural scene, public transport features award-winning buses, environmentally friendly trams, quality rail links and bicycle hire throughout the city - meaning all parts of Edinburgh are easily accessible for locals and commuters.
Office Space: Spaces offer a blend of historic charm and modern workspaces. The serviced offices in Edinburgh are the most popular and incredibly flexible, and the fast-growing office space market frequently provides options that can meet the needs of companies in all sectors.
Average Cost to rent per person, per month: £99 - £400

Bristol - Regarded as southern England’s most commercially important city, Bristol is one of the UK’s most popular cities and has become a major commercial hub in recent years. Based just 100 miles away from London, it’s located in the southwest of the country and is growing in popularity for businesses.

Best Sectors: Technology, Finance, Tourism
Location and Connectivity: Bristol’s public transport links are among the best in the country. With easy and convenient bus routes and a national rail hub that provides easy access to capital cities like London and Cardiff, there is even a regular ferry service on the River Avon that can take passengers all the way to Bath.
Office Space: With a blend of historic charm and modern workspaces, many of this region’s offices are housed inside beautiful buildings of stunning Georgian architecture. It’s also close to the University of Bristol which regularly sees several talented graduates entire the city’s workforce each year.
Average Cost to rent per person, per month: £112 - £450

Birmingham - A key business hub for companies such as Birds Custards, HP and Cadbury to Gymshark and Lloyds Bank. Birmingham has evolved into a crucial business hub, attracting companies of various sizes. Its central location, closely linked to other major cities in the UK, has been a pivotal factor for many businesses choosing to establish themselves in the city.

Best Sectors: Manufacturing, Finance, Technology

Location and Connectivity: Being one of the most central locations in the UK, Birmingham could not be better serviced. With eight local rail lines crisscrossing the city as well as its own airport, getting in and around the city could not be easier.
Office Space: From modern workspaces and collaborative environments, Birmingham is home to over 700 jewellers and independent retailers, it’s one of the city’s main industrial hubs. There are a whole host of serviced offices in Birmingham in this area, many of which can be found in stunning Georgian buildings.
Average Cost to rent per person, per month: £53 - £715

Glasgow - Regarded as Scotland's cultural and commercial hub, and with one of the largest GDPs in the UK, it’s clear to see why some of the world’s biggest businesses have flocked to the region with the likes of Jim Beam and IBM having headquarters in the city.

Best Sectors: Finance, Technology, Renewable Energy
Location and Connectivity: With its own subway that’s lasted more than 125 years and a reliable bus service operating in the city, Glasgow also has the largest public transport system in Scotland.
Office Space: The type of space you can expect can include fully serviced offices, coworking spaces, meeting rooms, virtual meeting rooms, private suites and much more.
Average Cost to rent per person, per month: £55 - £400

Cambridge - The success and appeal of the University of Cambridge has helped this town establish itself as an important centre in several cutting-edge industries including, high-technology, computer software and bioscience, making it an intellectual and tech hub.

Best Sectors: Technology, Biotech, Education
Location and Connectivity: Cambridge maintains frequent train connections to London and Stansted Airport, as well as Birmingham and various northern destinations across the UK.
Office Space: Cambridge is inundated with innovation hubs and research-focused environments. For this reason, the area is populated with serviced offices, flexible spaces, and coworking locations to suit businesses of all types.
Average Cost to rent per person, per month: £66 - £775

Newcastle Upon-Tyne - By choosing to base your premises in Newcastle, you’ll be joining financial powerhouses like Virgin Money, energy giants Npower and airline British Airways which already have headquarters in the local area.

Best Sectors: Innovation, Digital Technology, Engineering
Location and Connectivity: The Tyne and Wear Metro system has been rated as one of the country‘s most efficient modes of transport. Amongst that, there is Newcastle Central Station, Newcastle International Airport and several bus and taxi services to get you around the city and beyond.
Office Space: The wide range of office space available in Newcastle Upon-Tyne allows you to take a bespoke approach when choosing office space. You can expect can include fully serviced offices, coworking spaces, meeting rooms, virtual meeting rooms, private suites and much more.
Average Cost to rent per person, per month: £75 - £400

Leeds - A thriving hub for finance and technology, in recent years big names such as Barclays, HSBC, Aviva, Asda and more have opened headquarters in Leeds, creating jobs and contributing to the thriving economy.

Best Sectors: Finance, Digital Technology, Healthcare

Location and Connectivity: Leeds is a northern powerhouse extremely accessible thanks to its exceptional train routes that connect it to the rest of the country. Close to the Midlands as well as other cities in the north, it’s perfect for commuters and locals alike.
Office Space: Modern offices and collaborative workspaces including, serviced, flexible, private, coworking and more.
Average Cost to rent per person, per month: £34 - £450

Liverpool - Due to its location in the west of the country, Liverpool was a famous port city and continues to have strong links to the maritime industry. However, in recent years it’s expanded into a whole host of other industries with prominent businesses in finance, law, media, technology and science all setting up shop in the city.

Best Sectors: Maritime, Creative Industries, Technology
Location and Connectivity: In the form of Lime Street Station, Liverpool has a vibrant transport hub that has great links to London and other major UK cities.
Office Space: Historic buildings and modern spaces house fully serviced offices to flexible business suites. One of the UK’s most versatile cities when it comes to office spaces.
Average Cost to rent per person, per month: £62 - £600

Discover the unique charm of each city for startups, covering lifestyle, cost of living, quality of life, infrastructure, and cultural amenities. Explore the profiles to find the specific advantages each location provides for your business journey.

Looking for an office space to start your business? We are here to help!

Ready to make your move? Office Freedom is here to help you find the ideal office space in any location. Explore city profiles for tailored insights by contacting us and one of our expert brokers will be in touch shortly.