Sunderland ranked most affordable UK city for small businesses
The UK Business Affordability Index 2025, compiled by price comparison site BusinessPrices.co.uk, analysed the cost of running a business in the 30 largest cities and towns across the UK. Sunderland ranked first overall, based on five key categories of business expenditure: office rent, energy bills, broadband, insurance, and local business rates.
The study aimed to identify where in the UK businesses can operate with the lowest overheads, offering insight for entrepreneurs, start-ups and growing firms exploring cost-effective locations.
Low running costs across key categories
Sunderland secured the top position by offering some of the lowest commercial property rental rates in the country, averaging just £10.25 per square metre per year. This is significantly lower than cities like London, Reading, and Manchester, where office space costs can exceed £50 per square metre.
The report also found that Sunderland’s broadband and insurance premiums were among the cheapest nationally, and business rates for small commercial premises were well below the national average.
These factors combined to give Sunderland the lowest total cost score of all cities assessed, positioning it as an ideal environment for new and growing businesses.
Teesside, Blackpool and Preston also score highly
Other affordable cities near the top of the index included Teesside (Middlesbrough), Blackpool, and Preston, all of which benefited from a combination of low energy prices and modest rates. By contrast, cities such as London, Manchester, and Birmingham appeared at the bottom of the list due to high property and operational costs.
The report underlines the regional disparities in business costs, noting that many locations in the North of England and coastal areas offer strong value compared to major metropolitan centres.
A growing opportunity for businesses
Sunderland’s number-one ranking is expected to draw attention from business owners and investors looking to expand or relocate operations. The city has seen significant regeneration in recent years, with investment in commercial developments, transport infrastructure, and digital connectivity.
Alongside its affordability, Sunderland offers strong transport links, proximity to port facilities, and a growing digital and creative sector. These advantages may help further improve the city’s reputation as a location for start-ups and enterprise development.
The UK Business Affordability Index 2025 includes a full breakdown of cost categories by city, comparative rankings, and data visualisations. BusinessPrices.co.uk compiled the report using a combination of publicly available datasets and commercial benchmarks, including energy and insurance providers, broadband tariffs, and commercial property listings.
The full report can be viewed at: https://www.businessprices.co.uk/articles/uk-business-affordability-index-2025/
