The UK is one of the biggest business hubs in Europe, with London on the top lists for startups on the global stage. The good news for those of you who are balking at the high price of rents in London is that the capital is far from your only option.

There are several cities in the UK that are excellent choices for startups, giving you more options to launch, or at least soft-launch with a virtual office.

Not sure which one is right for you? Here are the top 5 cities in the UK for your startup:

Top UK Cities for Your Startup

1. London

London is, of course the top choice for startups, particularly if you need to secure funding and investments. Companies in London and the South East were responsible for 65% of investment between 2022 and 2023, raising £1,280 millionthrough the Enterprise Investment Scheme and a further £102 million through the Seed Enterprise Investment Scheme.

The flipside is, of course, the cost. London boasts some of the highest rents in Europe, much less the UK. Thankfully, with the increase of coworking spaces and virtual offices, businesses have more opportunities to get their foot in the door.

2. Manchester

Manchester is home to almost 700 active high-growth companies, with 55.9% of the city’s companies in their seed and venture stages. Manchester itself is also the largest city region economy outside of London, meaning it’s top of the list outside the capital and a prime choice for new businesses.

As such a large economy, it’s wise for all types of businesses – including those that operate out of London, to branch out. You can even do this easily with one of the best virtual offices Manchester has to offer, allowing you to have a presence without the cost.

3. Bristol

Bristol is quickly becoming the UK’s sustainability hub, making it the perfect place for green energy, sustainable development, and other eco-friendly brands to make a name for themselves. The high growth companies in Bristol collectively experienced a £4.15 billion turnover.

Bristol is also home to the largest percentage of female-founded businesses, making it a great environment for female entrepreneurs to grow and succeed.

4. Birmingham

Birmingham benefits from access to the Midlands Engine Investment Fund (MEIF) and the Minerva Business Angel Network, which has helped new businesses thrive in the Midlands and Birmingham specifically.

It’s also home to some big businesses, including 598 active high-growth companies and over 300,000 businesses total. With low rents and a wide market in the Midlands, Birmingham can be just the place for your startup.

5. Leeds

Leeds has a high active high-growth company-to-private company ratio. The city is home to 673 active growth companies, compared to the 161,379 private companies. Those high-growth businesses also employ a large chunk of the population at 77,000. Collectively, those businesses also saw a £10.4b turnover in the last year.

Marketing, SaaS, and manufacturing/engineering businesses are the biggest areas of focus in the city, making up 23.8% collectively of startups.

Key Takeaways

Regardless of which city is right for you, remember you have options. You can, for example, open up an office close to where you live and where it’s cheapest. You can then launch several virtual offices in each of the UK’s key regions to expand your business and start building a UK-first reputation.