Which parts of London are best for startups and growing businesses?
As a world-leading hub for innovation and entrepreneurship, London offers a plethora of exciting opportunities for startups and growing businesses to thrive. With its diverse boroughs, and vibrant business communities, choosing the right location can be crucial to the success of your business.
From the bustling tech hub of Old Street to the financial powerhouse of Canary Wharf, each area offers a unique blend of benefits tailored to different industries and business needs. To help you decide which location would be best for your business, our expert relocation consultants have put together this handy list of the best places to base a startup or growing business.
Is London still a great place for a growing business?
While there’s certainly no escaping the fact that London office space, especially that of prime city-centre spots, can come with a serious price tag. That being said, London continues to offer unparalleled opportunities for startups as well as expanding businesses.
London’s diverse ecosystem fosters innovation, collaboration and access to a global talent pool. The city’s strategic location and well-developed infrastructure means that it is well connected not only to other parts of the UK, but also to international markets.
With an abundance of funding opportunities, networking events and resources, London is a vibrant hub for entrepreneurs and a great place for growing businesses.
Where’s great for a growing business?
Now that we’ve covered just why London continues to be a magnet for startups, let’s delve deeper into the different areas of the city where they particularly thrive. From the vibrant creative scene in Camden to the bustling commerce of Westminster, London boasts a spectrum of boroughs, all with their own unique benefits and characteristics.
Having helped hundreds of businesses find their perfect office location, our expert agent’s know London’s commercial property market inside and out – so keep reading to hear their top thoughts on areas from Silicon Roundabout to the West End.
It’s important to remember that every business is different, and the right location can be dependent on a variety of factors such as the industry that you operate within, the type of talent and clients you hope to attract, and of course, your budget.
Old Street
Don’t be fooled by the name, Old Street, located in the London Borough of Islington, is home to many innovative startups. Considered to be the epicentre of East London’s Tech City, Old Street is a mile long street that runs from Clerkenwell to Shoreditch High Street.
While office space in Old Street attracts tech giants like Google, Amazon and Facebook, it is also a magnet for startups and scaleups in the tech and creative industries.
As an area home to a relatively large number of startups and small businesses, Old Street has an excellent range of flexible office options – such as coworking spaces, shared office space and short lease options. The trendy area also attracts many young professionals, giving businesses based there a great talent pool to dip into when needed.
Clerkenwell/Farringdon
On the outskirts of the city, Farringdon’s historic and charming atmosphere attracts a diverse range of businesses. Situated between Clerkenwell and the City, this lively district in the heart of Islington offers a quieter alternative to the bustling streets of Soho or Covent Garden, while maintaining excellent connectivity.
Recent substantial investment and regeneration have reinforced Farringdon’s status as a key part of The City’s Culture Mile. The area draws a variety of businesses, including those in law, creative, and tech sectors, making it a vibrant hub for innovation and development.
Strategically located on the edge of London’s Tech City, Farringdon benefits from outstanding transport links. Its train station is one of the best-connected in London, further enhanced by the new Elizabeth Line. This prime location is ideal for creative and media industries, as well as technology companies and startups seeking a dynamic yet accessible base.
Westminster
While Westminster may be best known as London’s government district, it is also home to an increasing number of growing businesses. Located centrally, with high footfall and excellent transport links, office space in Westminster attracts businesses from a wide range of sectors.
For many startups, having a prestigious postcode, like that of a Westminster office space, can help position their business as reputable and trustworthy to potential clients. With a thriving business community, the central location also offers new businesses excellent networking opportunities that can really help speed up growth.
According to an index by Startup, Westminster has one of the highest startup rates in London, as well as being home to the highest number of micro-businesses and small businesses.
Camden
Nestled in the heart of North London, Camden is a vibrant borough, full of creativity, culture and entrepreneurship. With an eclectic mix of iconic markets, alternative music venues and diverse community, Camden offers an unparalleled atmosphere for startups to thrive.
From the street art adorning the walls, to the quirky boutiques Camden is renowned for its creativity. It’s no surprise then, that the area attracts businesses in the music, television and creative industries.
The borough has even been coined ‘the new Palo Alto’ of London on account of the increasing number of startups choosing to grow their businesses in the inspiring area.
Lambeth & Southwark
Situated south of the River Thames, both Lambeth and Southwark are popular boroughs for startups given their strategic whilst still affordable location. With close proximity to key business districts like the City of London and Canary Wharf, as well as major transportation hubs like Waterloo Station, businesses based here benefit from easy connectivity to both domestic and international markets.
South London is dotted with co-working spaces and flexible offices designed to support businesses at every stage of their journey. Initiatives like the South Bank Innovation Hub and Lambeth’s Business Support Programme provides tailored support, mentorship and funding opportunities to help startups thrive.
Beyond business, Lambeth and Southwark can offer employees a great quality of life, with plenty of green spaces, cultural attractions and more affordable housing.
Covent Garden
Located in the heart of London’s West End, this iconic district is renowned for its lively atmosphere, cultural landmarks, and unparalleled accessibility. While its extensive range of theatres, museums, restaurants and shops may attract thousands of tourists to the area, its thriving business community is also a magnet for budding startups.
Office space in Covent Garden attracts various industries, from retail and hospitality to creative and tech sectors. The area’s dynamic environment fosters innovation and collaboration, making it an ideal setting for startups and established businesses alike.
Including access to a diverse talent pool, networking opportunities within a thriving business community, state-of-the-art office spaces, and of course, the perfect place to entertain clients.
Despite its prime location, there are still plenty of affordable options for startups within Covent Garden and the wider West End district – including co-working spaces, serviced offices and flexible leases.
Canary Wharf
With its sleek skyscrapers and iconic skyline, it’s no wonder Canary Wharf attracts so many budding startups. Home to the headquarters of several major banks, the bustling business district is particularly popular among financial institutions and multinational corporations.
Aside from these major players, Canary Wharf also has a growing community of entrepreneurs, startups and small businesses. With an impressive business community, Canary Wharf is the perfect place to rub shoulders with potential clients and collaborators.
Its reputation for business means the area attracts a large pool of skilled professionals. And as a result of significant investment into the area in the past decade, Canary Wharf office space is available in multiple sizes and configurations – including those tailored to the needs of startups.
Holborn/Chancery Lane
Located in Midtown, Holborn and Chancery Lane are also great places to base your new business. Traditionally associated with the legal profession, the elegant area attracts businesses big and small, in a range of different sectors.
Encompassing areas such as Bloomsbury, Holborn, Farringdon, Clerkenwell and St Giles, this diverse area has much to offer small and scaling businesses.
From the major corporations housed in High Holborn, to the innovative tech startups taking over Chancery Lane, the area is teeming with an entrepreneurial buzz. Just a stone’s throw from some of London’s busiest areas, these areas offer a calmer oasis for new businesses ready to make their mark on the city.
Islington & Hackney
Moving Eastward, Islington and Hackney are also becoming increasingly popular among new businesses on the hunt for their first office spaces. Islington is a trendy, affluent area with a thriving business community and one of London’s highest rates of startups. Similarly, Hackney is known as somewhat of a hub for hipsters, with many independent, small businesses flourishing here.
It’s this diverse, entrepreneurial ecosystem that makes Islington and Hackney so popular among startups. The business community offers access to a local talent pool, resources and a support network that can be crucial for navigating the challenges that come with scaling a business.
The diverse neighbourhood offers a wide range of office spaces, from converted warehouses to modern coworking spaces, offering flexibility and affordability for startups of all shapes and sizes.
Things to consider when starting or relocating
Choosing the perfect office space for your startup can be a big decision – and there are lots of important factors to consider.
Cost: Assessing the financial implications of starting or relocating a business is paramount. Consider not only the initial setup costs but also the ongoing expenses such as rent, utilities, and taxes. Evaluate the affordability of the chosen location and its alignment with your budget and growth plans.
Availability: Availability of suitable office spaces or commercial properties is crucial. Conduct thorough research to identify areas with ample availability of spaces that meet your requirements in terms of size, layout, amenities, and lease terms. New offices come on the market all the time, so it is worth waiting to find the right space that fits both your needs and wants of your business.
Future Proofing: Anticipate future needs and trends to future-proof your business location. Consider factors such as scalability, flexibility of lease agreements, and potential for expansion. Choosing a location with room for growth and adaptation can save time and resources in the long run.
Transport Links: Accessibility and transportation infrastructure play a significant role in the success of a business. Evaluate the proximity to public transportation hubs, parking facilities, and major roadways to ensure easy access for employees, clients, and suppliers.
Local Business Community: Research the presence of similar businesses or competitors in the chosen location. While proximity to competitors can foster collaboration and networking opportunities, excessive competition may pose challenges.
By carefully considering these factors, entrepreneurs can make informed decisions when starting or relocating their businesses, setting a solid foundation for growth and success.
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