Working for yourself has become an increasingly popular and viable career path across the United Kingdom. Many individuals are turning to self-employment to gain greater flexibility, boost their earnings, build personal ventures, or take control of their schedules and income streams. Rising living expenses have further motivated people to explore alternative income sources, such as freelancing, operating small businesses, or working as sole traders. However, the location where one chooses to live and work can significantly influence the ease of achieving success in these independent roles.
Study Reveals Best UK Cities for Self-Employed Workers
A comprehensive new study conducted by LEI Register has evaluated 60 UK cities to identify the most favourable environments for self-employed professionals. The research synthesised data from sources including Ofcom, Indeed, CoWorker, and the Office for National Statistics, focusing on key metrics such as average earnings, broadband accessibility, business activity levels, availability of coworking spaces, and typical working patterns. The findings indicate a notable shift away from traditional metropolitan hubs, with regional cities and smaller centres often outperforming larger urban areas that are burdened by higher costs and intense competition.
Westminster's Strong Performance in Key Areas
Westminster has secured an impressive third-place ranking overall, demonstrating that central London continues to provide robust opportunities for independent professionals, even amidst elevated living costs. The city boasts a self-employment rate of 17 percent, the highest among the top ten ranked locations, reflecting a dense and dynamic community of freelancers, consultants, and small business owners.
While Westminster's average annual earnings of £45,454 are relatively modest compared to cities like Cardiff or Preston, it excels in business formation. The city records 15.2 new business registrations per 100,000 residents, the highest figure in the study, underscoring a vibrant entrepreneurial ecosystem where new ventures are flourishing.
Challenges and Advantages in Westminster
The coworking landscape in Westminster is limited, with no per-capita spaces listed in the dataset, a reflection of the premium costs associated with central London office spaces. Nevertheless, the city's strategic location and unparalleled access to clients, talent, and essential services often compensate for this drawback, making it an ideal base for professionals who require close proximity to other businesses.
The average working week in Westminster is 37.1 hours, slightly longer than the top ten average. Many self-employed workers view this as a worthwhile trade-off, given the extensive exposure and networking opportunities that the city provides.
Top Ten Rankings and Comparative Insights
In the 2026 ranking, Westminster trails behind Cardiff, which claims first place, and St Albans in second position, but it outperforms Dundee and Preston. These latter cities excel more in earnings than in business density. Other notable entries include Brighton and Hove in sixth place and Portsmouth in seventh, both of which showcase strong self-employment communities and excellent broadband infrastructure.
London as a whole ranks eighth, shaped by its vast scale and coworking availability, while Coventry in ninth and Southend-on-Sea in tenth complete the top tier, performing particularly well in infrastructure and steady business formation.
Detailed Overview of Leading Cities
The study provides a detailed breakdown of the top twenty cities, highlighting variations in key performance indicators. For instance, Cardiff leads with average annual earnings of £103,354 and 33 coworking spaces per 100,000 residents, whereas Westminster's strengths lie in its high self-employment rate and business registration figures.
This analysis offers valuable insights for anyone considering self-employment, emphasising that success can be influenced by geographic factors beyond mere cost considerations.
