Money.co.uk business loans experts’ research revealed that generally, the areas with the lowest rents have the least number of properties available. This reinforces the notion that rents are something businesses consider a priority when deciding where to base themselves.
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Westminster has the highest number of available properties as well as the highest rent
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Birmingham has the second most properties available after Westminster, yet the rent is 7 times less.
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Birmingham, Somerset and County Durham provide rates under £100 per sqm as well as being in the top 10 for the highest property availability
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West Lindsay ranks 31st on the list of places with the most available properties, as well as ranking number 5 on the list of cheapest rent.
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West Lancashire is in the top 20 for lowest rent but is also one of the top 50 areas with the most available properties – making it a good place for new businesses to set up.
The graph below shows that as rent increases, so does the amount of available properties.
Cameron Jaques, money.co.uk business loans expert, comments on how important it is for small business owners to factor increasing rates into their long-term plans.
“With the business rates rise on the horizon of the coming year, small business owners might find the impact is multifaceted. Small businesses often operate on tight budgets, so an increase in business rates can strain their finances, leading to reduced profits or even financial losses.
“Higher operating costs due to increased business rates may also make it harder for small businesses to compete with larger corporations. They may struggle to offer competitive prices or invest in growth initiatives.
“Finally, as business rates are typically paid annually or semi-annually, small businesses might experience cash flow issues when they have to set aside a significant amount of money to cover the increased rates.
“Relocating your business to an area with lower rates can be disruptive and costly in the short term, as it involves moving personnel, equipment, and potentially establishing new customer relationships. However, if it mitigates the aforementioned problems concerning cash flow and profit, it might be worth considering.”
Top 10 cities with lowest business rates/rent:
|
Local authority |
Available properties |
Available properties as a % of properties |
Total area (m/2) |
Total rent value |
Rent per sqm |
# of properties |
|
North Lincolnshire |
21 |
0.13% |
3494843 |
£93,530,952.00 |
£26.76 |
16775 |
|
North East Lincolnshire |
64 |
0.37% |
2733747 |
£87,755,212.00 |
£32.10 |
17201 |
|
Rossendale |
44 |
0.47% |
1011056 |
£34,450,638.00 |
£34.07 |
9374 |
|
Powys |
47 |
0.26% |
1503739 |
£53,095,380.00 |
£35.31 |
17922 |
|
West Lindsey |
56 |
0.73% |
1037290 |
£37,210,212.00 |
£35.87 |
7664 |
|
Erewash |
42 |
0.34% |
1582457 |
£57,269,856.00 |
£36.19 |
12377 |
|
Neath Port Talbot |
16 |
0.12% |
1510105 |
£54,962,356.00 |
£36.40 |
13037 |
|
Blaenau Gwent |
12 |
0.18% |
826422 |
£30,135,475.00 |
£36.47 |
6830 |
|
East Riding of Yorkshire |
15 |
0.04% |
4910816 |
£182,570,575.00 |
£37.18 |
37465 |
|
Mid Suffolk |
34 |
0.34% |
1510932 |
£56,344,265.00 |
£37.29 |
9958 |
Top 10 cities with the highest number of available properties as a % of properties
|
Local authority |
Available properties |
Available properties as a % of properties |
Total area (m/2) |
Total rent value |
Rent per sqm |
# of properties |
|
Islington |
403 |
1.45% |
2274858 |
£656,439,477.00 |
£288.56 |
27733 |
|
Hackney |
371 |
1.41% |
1663931 |
£445,415,177.00 |
£267.69 |
26242 |
|
City of London |
425 |
1.27% |
7418676 |
£3,228,031,247.00 |
£435.12 |
33579 |
|
Westminster |
1021 |
1.11% |
7954997 |
£4,821,811,742.00 |
£606.14 |
91714 |
|
Oadby and Wigston |
46 |
1.03% |
546422 |
£28,623,559.00 |
£52.38 |
4472 |
|
Watford |
87 |
1.03% |
1017077 |
£144,356,655.00 |
£141.93 |
8476 |
|
Cheshire West and Chester |
355 |
1.02% |
4133994 |
£287,504,282.00 |
£69.55 |
34866 |
|
Warrington |
222 |
1.02% |
3515825 |
£226,415,411.00 |
£64.40 |
21852 |
|
Manchester |
583 |
1.02% |
6493418 |
£749,825,333.00 |
£115.47 |
57435 |
|
Southwark |
307 |
0.99% |
2834875 |
£868,604,049.00 |
£306.40 |
30922 |
Cameron has also given his top tips for keeping costs low when starting a business:
“Starting a business can be expensive, but there are several strategies you can employ to keep costs low and maximise your chances of success. Here are some top tips:
“Work from home or a shared space: Avoid expensive office rentals by working from home or using coworking spaces until your business is more established.
“Outsource and freelance: Instead of hiring full-time employees, consider outsourcing tasks to freelancers for specific projects.
“Start small: Begin with a minimal viable product (MVP) and a lean business model. Focus on essential features and services to avoid unnecessary expenses.
“Create a detailed business plan: A well-thought-out business plan can help you allocate resources efficiently and set realistic financial goals.
“Negotiate with suppliers: Negotiate terms and prices with suppliers to secure the best deals. Consider forming partnerships with suppliers to access discounts.
“Monitor expenses closely: Keep a close eye on your finances, track expenses, and review your budget regularly to identify cost-saving opportunities.
“Prioritise marketing and sales: Focus on marketing and sales efforts that have a high return on investment (ROI), such as content marketing, social media, and email marketing.
“Barter and trade services: Explore opportunities to exchange goods or services with other businesses instead of paying for them.”
“Bootstrap: Use your savings and revenue generated by the business to fund its growth instead of seeking external funding initially.