The Top Cities for Launching a Business in 2026
- Mark Kozo
- 2 hours ago
- 6 min read
Starting a business can be challenging, and with today’s economic headwinds, from soaring material costs to unpredictable energy bills, it can make the leap feel even more daunting. However, even in a challenging climate, the right environment can act as a powerful catalyst for success. Finding a location that offers the talent, connectivity, and cost-efficiency your business needs isn’t just an advantage anymore; it's a necessity.
To find the best UK cities for starting a business in 2026, our experts at Approved Business Finance have analysed various factors such as commercial property price, 5G access, EV availability, and the number of new economy firms working in FinTech, artificial intelligence (AI), advanced manufacturing, and green energy. All of these factors signal where businesses can flourish and where they might struggle to get off the ground.
Best cities to set up your business
Our latest report sees a change in leadership with Aberdeen knocking Oxford off the top spot as the best city for prospective business owners to plant their flag. The Scottish coastal hub, which was transformed by the oil and gas industry, is now building on that history for a whole new business wave to thrive.
The appeal of this city is clear - affordability. Aberdeen has commercial space available to rent for £14.15 per square foot, making it some of the most affordable commercial spaces available. Similarly, for those looking to buy commercial property instead of rent, Aberdeen ranked in the top five, with the average price of commercial spaces coming under £250,000.
Rank | City | Available commercial properties | Pound per square foot rented properties | 5G Coverage (%) | New economy firms per 10,000 population | Total index score |
1 | Aberdeen | 631 | £14.15 | 98.8% | 27.8 | 61.02 |
2 | Manchester | 1629 | £25.10 | 100% | 22.3 | 60.98 |
3 | Coventry | 301 | £14.75 | 100% | 17.3 | 60.97 |
4 | Reading | 199 | £36.56 | 100% | 35.1 | 58.63 |
5 | Norwich | 366 | £13.23 | 100% | 26.5 | 55.87 |
6 | Derby | 186 | £14.43 | 100% | 17.7 | 54.88 |
7 | Milton Keynes | 596 | £20 | 95.7% | 36.1 | 54.66 |
8 | Glasgow | 1016 | £18 | 100% | 17.8 | 54.64 |
9 | Birmingham | 1157 | £20.84 | 100% | 16.7 | 53.73 |
10 | Leeds | 1137 | £19.75 | 98.9% | 23.5 | 53.69 |
Beyond the property, the city offers a high-value workforce. Average weekly salaries in Aberdeen stand at £620 a week, making it one of the highest-earning hubs in the country, meaning business owners can save money on rent but still give their staff great pay incentives.
For those looking to cut costs on commercial spaces, the report found that the Midlands is a clear hotspot for cheaper rent, with Peterborough, Mansfield, and Leicester also ranking highly for having the cheapest rent per square foot in the UK.
Manchester takes the second top spot, proving the North is still the powerhouse it’s claimed to be. With 1,629 properties to rent or buy, Manchester has the most available space for new businesses to find a home. Along with Birmingham, Leeds, and Glasgow, these four big cities make up nearly 30% of all the available commercial space in the UK.
Manchester is also a tech champion. It has full 5G coverage, which is a massive boost for productivity. Better mobile signal is expected to add billions to the UK economy, so being in a 100% 5G city like Manchester gives businesses a huge head start.
At number three, we have Coventry. This city has completely reinvented itself over the last few years. It’s gone from an old industrial hub to a fresh, modern place to start a business, earning it a well-deserved bronze medal.
Coventry is built for tomorrow; like Manchester, it also has full 5G coverage for a perfect connection and leads the UK for available electric car charging points. While the rest of the UK is struggling to install enough chargers for the 1.85 million electric cars now on the road, Coventry is already ahead of the game, making it a perfect location for modern businesses.
The 10 cities presenting the most challenging for new businesses
Rank | City | Available commercial properties | Pound per square foot rented properties | 5G Coverage (%) | New economy firms per 10,000 population | Total index score |
1 | Swansea | 82 | £19.89 | 78.6% | 13.7 | 34.37 |
2 | Mansfield | 90 | £10.04 | 98.6% | 12.5 | 38.81 |
3 | Sheffield | 574 | £12.50 | 88.1% | 18.4 | 40.70 |
4 | Crawley | 146 | £29.23 | 95.7% | 17.3 | 41.15 |
5 | Luton | 163 | £18.50 | 100% | 11.3 | 41.31 |
6 | York | 203 | £20 | 99.8% | 20.6 | 41.39 |
7 | Bournemouth | 194 | £22.68 | 99% | 26.6 | 42.25 |
8 | Burnley | 156 | £11.19 | 92.9% | 19.8 | 43.39 |
9 | Sunderland | 166 | £12 | 100% | 11.2 | 43.42 |
10 | Northampton | 169 | £16.85 | 87.2% | 26.7 | 44.29 |
In 2026, Swansea is the city that currently presents the most challenges for business owners. With only 82 available commercial properties to rent and buy, space is either severely limited or incredibly competitive. While it is one of the top five cheapest places to buy a property (under £250,000), it ranks at the bottom for 5G coverage. With only 78.6% of the area covered, you can't always guarantee your business will stay connected.
Mansfield also ranks low for the number of commercial properties, with only 90 available. While the property prices are reasonable, it is the weekly wages that stand out. Ranking with an average weekly salary of £395, workers in Mansfield are paid nearly 40% less than workers in the neighbouring city of Derby, who earn a weekly salary of £663.
The Northern city of Sheffield ranks next. It is currently the second most expensive city to rent in, averaging at £4,742 per month. Although for those wanting to buy, Sheffield ranks in the top 10 for affordability, at an average of £299,995. So, if businesses have the capital to buy, Sheffield is still a great contender.
Where in the UK has the most affordable commercial space?
Rank | City | Average cost of commercial space per square foot |
1 | Kingston upon Hull | £8.43 |
2 | Mansfield | £10.04 |
3 | Doncaster | £10.25 |
4 | Peterborough | £10.98 |
5 | Burnley | £11.19 |
6 | Leicester | £11.50 |
7 | Sunderland | £12 |
8 | Bradford | £12.18 |
9 | Sheffield | £12.50 |
10 | Norwich | £13.23 |
Kingston upon Hull keeps its title as the most affordable city for commercial rent, coming in at just £8.43 per square foot. At the other end of the scale, the most expensive spots are Swindon, Belfast, Slough, Reading, and Oxford. Given how close Slough, Reading, and Oxford are to London, the high prices aren't a surprise. Reading, in particular, stands out for the size of its spaces, averaging 17,215 square feet, which is nearly 10,000 square feet larger than the average space in Swindon, which ranked second in place.
How can business owners get started?
So, you've picked your city, but how do you make it happen? Picking a location is the first step, but we know that finding the money to start can feel like a mountain to climb. Once the perfect building has been identified, a commercial mortgage can help with the initial purchase, followed by an easy-to-manage repayment plan. And for the materials needed to see the business thrive, asset finance is a great way to get the equipment now while keeping your cash flow steady when it matters most.
Commenting on the research, commercial director of Approved Finance Group, Mark Kozo, said:
“The UK business landscape in 2026 is defined by resilience. While the cost of business remains a challenge, our research shows that the right location can act as a shield against economic volatility. Cities like Aberdeen, Manchester, and Coventry aren’t just providing the office space - they are providing the 5G infrastructure, the green energy access, and the talent pools that companies need to survive. By choosing a future-ready hub, founders are giving themselves the best possible head start in a competitive market.
“This shift isn’t just data to us, it’s our reality. As a business based in Milton Keynes, what has struck me the most is how far our city has climbed up the ranks, making it into the top ten this year. We’re fortunate enough to be witnessing first-hand the opportunities available for startups, which has also fuelled our business and helped it to grow into what it is now.”
Methodology
To determine which areas of the UK are the best to launch a business in 2026, we looked at a number of key indicators to create an index score:
Number of available commercial properties (Rightmove)
Pound per square foot for rented properties (Rightmove)
Average square foot of commercial spaces (Rightmove)
Average total cost of commercial spaces to buy (Rightmove)
The number of new economy firms per 10,000 of the population (Source)
The number of EV charging points per 1,000 of the population (Source)
The percentage of 5G coverage in the city (Source)
The median age of the workforce (ONS)
The average weekly salary (full-time) (ONS)
These factors were given a weighted score out of 100, which gives us our final index result.
