Where Are UK Businesses Moving? The Top Destinations for Office Relocations and New Branches

Over the past two years, UK businesses have been on the move, seeking new opportunities both within the country and beyond. A variety of factors—including economic shifts, government initiatives, and post-Brexit realities—have influenced these relocation decisions. In this article, we explore the most popular destinations for UK companies opening new branches or relocating offices, focusing on domestic and international trends.

Domestic Office Relocations: The Rise of Regional Hubs

While London remains the epicentre of business activity, many companies are choosing to relocate to or expand within regional cities across the UK. This shift is driven by the search for cost-effective office spaces, access to a broader talent pool, and government-backed decentralisation initiatives.

London’s Shifting Office Landscape

Although many businesses remain within the Greater London area, there is a clear pattern of movement within the city. On average, companies that relocate their offices in London move a distance of 3.5 miles, with the median move being just 2 miles. Notably, 60% of these relocations occur within the same town or borough. This trend suggests that while businesses are keen to remain in London, they seek more efficient and cost-effective office spaces.

Leeds: The Northern Powerhouse

Leeds has emerged as one of the most attractive destinations for UK business relocations. Known as a key player in the “Northern Powerhouse” initiative, the city offers modern office spaces, strong infrastructure, and a growing business community. Companies like Right Digital Solutions have recently opened new offices in Leeds to serve clients in the region more effectively.

Other Key Regional Cities

Cities such as Birmingham, Bristol, Edinburgh, and Manchester are also experiencing growth in office demand. In 2022, prime office rents in these areas increased significantly -12 % in Bristol and 6% in Leeds, with continued growth expected in 2023. In 2024, the UK’s regional office markets recorded a 22% increase in total take-up compared to 2023, reflecting the rising appeal of these cities.

Government Decentralisation Initiatives

The UK government’s “Places for Growth” programme encourages businesses and public sector bodies to relocate outside London. This initiative has already moved thousands of government roles to regional cities, boosting local economies and driving demand for office space.

International Moves: Brexit and Beyond

Brexit has prompted many UK companies to reassess their international strategies. For some, this means opening new branches or relocating offices abroad to maintain access to the European Union or to pursue new markets further afield.

Ireland: A Gateway to the EU

Ireland has become an increasingly popular destination for UK companies looking to maintain a foothold in the EU. With a shared language and similar legal framework, Ireland offers a seamless transition for businesses seeking to navigate post-Brexit trade barriers.

The United States: Accessing Capital and Markets

Some of the UK’s largest firms are looking across the Atlantic. For instance, Ashtead, a leading equipment rental company, recently shifted its primary listing from London to New York to access deeper capital markets. This move reflects a broader trend of UK companies expanding in the U.S., where there are greater growth opportunities and investor appetite.

Emerging Markets: New Frontiers for Growth

UK companies are also exploring opportunities in emerging markets. A notable example is London-based design firm Cross Works, which has recently expanded into Uzbekistan. Such moves highlight the potential for growth in less saturated and rapidly developing regions.

What Drives UK Business Relocations?

Several key factors are influencing the decisions behind office relocations and expansions:

• Cost Efficiency: Regional UK cities often provide more affordable office space and lower operational costs compared to London.
• Access to Talent: Businesses are moving to areas with strong universities and skilled workforces.
• Government Policy: Initiatives like “Places for Growth” incentivise relocations to boost regional economies.
• International Market Access: Brexit has prompted businesses to establish a presence within the EU or expand into larger global markets like the U.S.

Conclusion: A Dynamic Landscape for UK Businesses

The past two years have seen significant shifts in where UK businesses choose to operate. While London remains a major hub, regional cities like Leeds, Birmingham, and Manchester are rising in prominence. Internationally, Ireland and the United States are popular destinations for companies seeking to navigate the post-Brexit environment and access new growth opportunities.

As economic conditions continue to evolve, UK businesses are likely to remain agile, strategically choosing office locations that align with their long-term goals. Whether it is a short move within London or a bold leap across the Atlantic, these decisions will shape the future of the UK’s business landscape.

Stephanie Cooper

Stephanie is a content marketing specialist for Top Removals for the past several years. She has extensive experience working with moving companies and knows her audience. Stephanie creates engaging and useful content helping the customers of Top Removals with their struggles and providing them with the most accurate insight.