Study: The top 10 UK cities where businesses can save most on property tax
Choosing the right location can make or break a business budget. While factors like transport links and workforce availability often dominate property decisions, one major cost frequently gets overlooked: commercial property tax. For many UK businesses, this represents one of their largest fixed overheads, yet the amount varies dramatically depending on where you set up shop.
Chris Roberts, managing director at Capital Allowance Review Service, has analysed data across UK cities to pinpoint where businesses can secure the biggest property tax savings.
“Too many companies focus purely on rent when evaluating commercial property,” says Roberts. “But business rates can add 40-50% to your annual property costs.
Understanding which cities offer the best value could save your business tens of thousands of pounds each year.”
The Study
Capital Allowance Review Service examined data from the Valuation Office Agency and government records for UK cities (excluding Scotland due to limited publicly available floorspace data). The analysis evaluated three key factors: total commercial floorspace available in each city, the rateable value per square metre (the estimated annual rental value used for tax calculations), and local business tax multipliers.
These factors were combined into a Property Tax Savings Potential Score (0-100), where higher scores indicate greater opportunities for tax savings. Cities with more commercial space, lower rateable values, and favourable tax rates scored highest, signalling the best locations for businesses seeking affordable premises with lower ongoing tax burdens.
Table: Top 10 UK Cities With The Highest Potential For Property Tax Savings
| Rank | City | Total Commercial Floorspace (2023, m²) | Rateable Value of Floorspace (£/m2) | Property Tax Savings Potential Score |
| 1 | Lisburn | 1,188,000 | £14 | 100.00 |
| 2 | Durham | 5,483,000 | £41 | 32.71 |
| 3 | Wrexham | 2,068,000 | £39 | 30.40 |
| 4 | Hereford | 2,228,000 | £44 | 27.76 |
| 5 | Kingston upon Hull | 3,516,000 | £46 | 27.28 |
| 6 | Bradford | 6,106,000 | £49 | 26.34 |
| 7 | Wolverhampton | 3,131,000 | £48 | 25.56 |
| 8 | Doncaster | 4,107,000 | £49 | 25.47 |
| 9 | Stoke-on-Trent | 3,820,000 | £49 | 25.31 |
| 10 | Wakefield | 5,064,000 | £52 | 23.98 |
- Lisburn – 100.00
Lisburn in Northern Ireland claims the top spot with a perfect score of 100.00, driven by its exceptionally low rateable value of just £14 per square metre, which was the lowest in the entire dataset. With 1,188,000 square metres of commercial floorspace available, businesses relocating here could see property tax bills slashed compared to mainland alternatives.
“Lisburn represents extraordinary value,” says Roberts. “That £14 per square metre rateable value is less than a third of what you’d pay in Durham, which comes second. For businesses with large premises requirements, the savings add up fast.”
- Durham – 32.71
Durham secures second place with a score of 32.71, offering 5,483,000 square metres of commercial space at a rateable value of £41 per square metre. The city provides substantial floorspace options while maintaining relatively affordable property costs compared to southern England.
“Durham shows how historic cities in the North East are becoming genuine alternatives for businesses priced out of London,” Roberts explains. “You get quality commercial property without the punishing rates you’d see in the capital.”
- Wrexham – 30.40
Wrexham in Wales ranks third with 30.40, combining 2,068,000 square metres of commercial space with a rateable value of £39 per square metre. The city benefits from both Welsh tax multipliers and competitive property valuations.
“Wrexham has been gaining attention as businesses look westward for savings,” notes Roberts. “The combination of Wales’ single business rates multiplier and lower property values makes it particularly attractive for manufacturing and distribution operations.”
- Hereford – 27.76
Hereford scores 27.76, with 2,228,000 square metres of commercial floorspace at £44 per square metre. This market town offers a balance between rural location and commercial property availability.
“Hereford appeals to businesses that don’t need to be in major urban centres,” says Roberts. “It’s proving popular with tech companies and professional services that can operate remotely while benefiting from significantly lower overheads.”
- Kingston upon Hull – 27.28
Rounding out the top five, Kingston upon Hull scores 27.28 with 3,516,000 square metres of space at £46 per square metre. The East Yorkshire city provides port access alongside competitive property taxation.
“Hull combines logistics advantages with tax efficiency,” Roberts points out. “For businesses in import-export or manufacturing, you’re getting port connectivity without paying premium rates. That’s a powerful combination for long-term cost management.”
Regional Patterns: Mid-Sized Cities Challenge London’s Dominance
The data reveals a clear trend: mid-sized cities across the Midlands, North, and Wales are emerging as viable alternatives to London for businesses seeking affordable commercial space. Cities like Bradford (6,106,000 square metres), Wolverhampton, and Stoke-on-Trent all feature in the top 10, offering substantial floorspace at rateable values between £48-£52 per square metre, a fraction of what London commands.
“What we’re seeing is a fundamental shift in how businesses evaluate location,” says Roberts. “Twenty years ago, London was non-negotiable for many sectors. Now, with remote working normalised and transport links improved, businesses are calculating whether London’s premium is justified. For many, these mid-sized cities offer the space, workforce, and connectivity they need at a third of the cost.”
Chris Roberts commented: “Location decisions shouldn’t be driven by tax savings alone. While our data shows where businesses can cut costs, the cheapest option isn’t always the smartest long-term choice.
“Consider your workforce needs first. Can you attract the talent your business requires in that location? Look at transport infrastructure, both for staff commutes and supply chains. A city with low rates but poor connectivity could cost you more in logistics and recruitment challenges.
“That said, property tax represents a fixed overhead that compounds year after year. A business paying £50,000 annually in rates versus £150,000 has an extra £100,000 to invest in growth, staff, or weathering economic downturns. Over a ten-year lease, that’s a million pounds.
“The sweet spot is finding locations that offer both competitive rates and the fundamentals your business needs to thrive. Cities like Durham and Hull are increasingly ticking both boxes, as they’ve invested in infrastructure and skills while maintaining significantly lower costs than southern alternatives.”