Over the past decade, smaller UK cities have been quietly rising up the ranks – not just as great places to live, but as strategic locations for business. With flexible working now a permanent fixture, many companies are re-evaluating the need for big-city headquarters and embracing the cost savings, convenience, and lifestyle benefits of regional hubs.

The numbers back it up. Between 2011 and 2021:

• Cambridge’s population grew by 17.6%
• Peterborough by 17.5%
• Milton Keynes by 15.3%
• Leicester, Luton and Northampton all saw significant growth

 

In contrast, London’s population grew by just 7.7%, and the capital now accounts for only 14% of the UK’s population – a drop from 20% a century ago.

The trend accelerated during the COVID-19 pandemic. At its peak, London saw a temporary population decline of 75,000 – equivalent to the entire population of Tunbridge Wells. While some of that has rebounded, many professionals didn’t return, instead choosing locations that support a better quality of life.

Why are smaller cities and towns winning?

• Commute impact: Long commutes increase stress and reduce job satisfaction. In compact cities, walking or cycling to work is often possible.
• Rising transport costs: Rail fares rose 4.6% in March 2025 and fuel hit a six-month high in February – making shorter commutes more desirable.
• Vehicle dependency: 34% of UK households now own two or more cars (up from 8% in the 1970s), but owning multiple vehicles is costly – over £600 per car annually in servicing, MOTs and repairs (excluding fuel and insurance).
• Time savings: Cutting just 30 minutes off a daily commute saves 2.5 hours per week -time that can be reinvested in life, not logistics.
• Environmental gains: Reduced commuting means lower emissions and less congestion.

 

This shift is changing the way we think about commercial real estate. Businesses are increasingly prioritising agility, affordability and employee wellbeing over prestige postcodes.

That’s exactly where UBC fits in. With flexible workspaces in strategically positioned towns and smaller cities – like Solihull, Tunbridge Wells and Southampton – UBC offers professional, well-connected environments with:

• Easier access
• Lower occupancy costs
• Shorter commutes
• Proximity to green space and community amenities

 

Solihull’s Birmingham Business Park, for example, is minutes from major transport links and the new HS2 Interchange. UBC Southampton, located in Ocean Village, offers waterfront workspace surrounded by culture, cafes, and coastal walks.

Smaller cities aren’t just commuter alternatives – they’re becoming business destinations in their own right.

Read the full article with key stats.

Explore UBC’s flexible office locations across the UK: www.ubcuk.com

See all of the available commercial property listed by  UBCukLtd on NovaLoca here.

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