These are the best cities in the UK for businesses to invest money in, according to new data

A new study by ZOTA Professional Training analysed 50 major urban areas across the UK. Researchers built a points-based index designed to capture the real health of a city’s investment potential, drawing on official data from the Office for National Statistics and cost-of-living data from Numbeo.

Seven key factors were used to rank each city, weighted to reflect their influence on business growth and property returns. These included: new business start-ups (15%), business closures (10%), five-year survival rates (20%), average monthly rent (15%), average house price (10%), gross rental yield (20%) and employment rate (10%).

Lincoln ranks first overall with a total score of 63.30, making it the UK’s best city for investment outside the capital. The city’s 2,575 new business start-ups land it in fifth place for entrepreneurship, while just 310 business closures see it rank second lowest in the country, a sign that ventures here are not only starting, but sticking. A five-year survival rate of 93% places Lincoln in the top 15 nationally, further cementing its reputation as a steady bet for long-term growth.

On the property side, average house prices sit at £184,000 (16th in the study), striking a sweet spot for affordability without dipping into risky territory. Rental yields are strong too, at 9.46%, ranking seventh overall. The city’s weaker spot is employment, with just 53.7% of residents in work (35th nationally), but investors might well see that as an opportunity rather than a drawback. After all, Lincoln’s historic charm, growing university presence, and booming local economy continue to draw both talent and tourists, the kind of recipe investors love.

Harlow claims second place with a score of 63.09, largely thanks to its remarkable property performance. With gross rental yields at 13.49%, the highest in the entire study, landlords here are laughing all the way to the bank. At just £169,000 on average, house prices are among the lowest in the south of England, ranking 11th overall.

It’s not all rosy, however. Harlow has a relatively small number of new business start-ups (540, ranking 46th), paired with 455 closures (5th highest), suggesting a more fragile business climate. Its five-year survival rate of 89.6% puts it 44th in the study. Yet its strong employment rate of 62.9% (second highest nationally) offsets these risks. Situated within commuting distance of London and Cambridge, Harlow benefits from its location on the innovation corridor. Investors willing to gamble on higher churn might see its affordability and rental returns as too good to pass up.

Blackburn with Darwen takes third place with a score of 62.72, bolstered by one of the strongest business survival rates in the country. With a remarkable 94.5% of businesses lasting five years, it ranks second nationally, proof that once you set up shop here, chances are you’ll still be trading five years later. Add to that a solid gross rental yield of 10.18% (fifth overall) and affordable average house prices of £165,000 (ninth), and you can see why it scores so highly.

While its 730 new start-ups (37th) don’t exactly scream entrepreneurial boom, the lower churn is reassuring. Employment is lower than average at 53.2% (38th), but local initiatives in tech and advanced manufacturing are changing the economic profile. For investors eyeing long-term stability, Blackburn’s combination of resilience and affordability might make it one of the smartest “under the radar” options on the list.

Darlington ranks fourth with a total score of 62.18, balancing affordability with remarkable resilience. Its five-year survival rate is 94%, the fourth highest in the UK, while average house prices of £157,000 (eighth) make it an attractive market for first-time investors. Rental yields of 8.41% (15th) are solid, if unspectacular, while average monthly rents of £1,100 (14th) keep the market competitive.

On the flip side, business creation lags behind with just 455 start-ups (47th place) and 460 closures (6th highest). Employment is middling at 56% (25th), but Darlington’s strategic location between Newcastle and York, along with its recent investment in rail and infrastructure, makes it one to watch. Investors looking for a balance between property affordability and business resilience will find plenty to like here.

Salford lands in fifth place with a score of 60.36, proving that Greater Manchester isn’t just a cultural powerhouse but a business magnet too. Its five-year survival rate of 94% (7th) is impressive, and its 1,510 new start-ups place it 12th, showing strong entrepreneurial momentum.

The city’s property scene is a mixed bag: average house prices sit at £226,000 (30th), not the cheapest, and rents average £1,700 (40th). Still, rental yields of 9.03% (11th) and a robust employment rate of 58.8% (11th) make Salford attractive to investors who see potential in its proximity to Manchester’s media, tech, and education hubs. It’s a city that mixes grit with growth, and for investors, that combination could be golden.

Burnley comes in sixth with a score of 59.82, offering perhaps the most affordable property market in the study. Average house prices are just £121,000, the lowest of all 50 cities surveyed, while gross rental yields of 10.91% (4th) make for excellent landlord returns. It’s easy to see why investors are intrigued.

However, Burnley sits at the bottom for new start-ups (335, 50th) and has one of the highest levels of closures (350, 3rd). Survival rates are mid-pack at 90.8% (39th), while employment is on the lower side at 53.2% (37th). For investors, this paints a picture of a market that rewards those focused on property rather than pure business growth. Still, for buy-to-let landlords, Burnley might be one of the UK’s best kept secrets.

Blackpool ranks seventh with 58.35, offering a blend of affordable property and impressive resilience. With house prices averaging £129,000 (2nd lowest in the study) and average monthly rent at £875 (7th), affordability is its biggest draw. Rental yields of 8.14% (17th) add further attraction.

The town also boasts a strong survival rate of 93.1% (13th), though its 565 start-ups (43rd) and 760 closures (16th) suggest a fragile business base. Employment is the weak spot at 51% (46th), one of the lowest in the country. That said, Blackpool’s tourism and leisure industries continue to support the local economy and investors with an eye for hospitality or affordable housing may see untapped opportunity.

Wakefield claims eighth place with a score of 57.78, thanks to a strong balance between property affordability and business performance. With 1,255 new start-ups (20th) and 1,215 closures (32nd), the city shows a lively entrepreneurial scene. A five-year survival rate of 92% (22nd) suggests plenty of staying power.

House prices average £199,000 (21st), while rents are higher at £1,600 (39th). But gross rental yields of 9.65% (6th) keep it appealing for property investors. Its employment rate of 57.3% (16th) rounds out a solid package. Sitting just outside Leeds, Wakefield is well-positioned for those who want the benefits of Yorkshire’s growing economy without paying Leeds prices.

Preston takes ninth with 57.74, delivering a healthy mix of affordability and property returns. With 765 new start-ups (35th) and 730 closures (13th), it’s not leading the entrepreneurial pack, but its five-year survival rate of 91.8% (29th) is reassuring.

On the housing side, Preston shines. Average house prices are £177,000 (13th), and gross rental yields are a respectable 9.38% (8th). Monthly rents average £1,383 (26th). Its employment rate of 56.2% (23rd) adds stability. Known as a university city with a growing student base, Preston offers investors a steady rental market and a central Lancashire location with growing appeal.

Middlesbrough rounds out the top ten with a score of 55.73, showing that Teesside is far from being overlooked. Its five-year business survival rate of 93.8% (9th) is one of the best in the country, while affordable house prices (£144,000, 7th) and some of the cheapest rents (£750, 3rd) make it a cost-effective place to invest.

But there are trade-offs. Rental yields are weaker at 6.25% (35th), and employment is the lowest in the study at just 49.5% (50th). Business creation is modest too, with 620 start-ups (40th) and 575 closures (8th). For investors, Middlesbrough is a classic case of high resilience but weaker economic fundamentals, making it an intriguing option for those willing to play the long game.

At the other end of the table, Cambridge, Luton, and Nuneaton & Bedworth rank as the least attractive places to invest, all scoring under 40. Other struggling cities include Coventry, Newcastle, Southend-on-Sea, Stoke-on-Trent, Birmingham, Nottingham, and Hartlepool, proof that big names don’t always mean big returns.

Top 20 list of the best cities in the UK for investment: