Leeds has emerged as one of the UK’s top three regional start-up locations, according to new analysis released at the national property conference UKREiiF 2025 (taking place in Leeds this week). The findings by BNP Paribas Real Estate’s Next X data tool, show Leeds placing third after Cambridge and Bristol.
According to the Next X Start-up Index, while London continues to dominate by scale, leading regional cities and key university towns are increasingly outperforming the capital on key growth indicators. The full top 10 ranking is as follows:
| Next X Start-up Index Ranking | UK City |
| 1. | Bristol |
| 2. | Cambridge |
| 3. | Leeds |
| 4. | Edinburgh |
| 5. | Reading |
| 6. | Oxford |
| 7. | Cardiff |
| 8. | London |
| 9. | Manchester |
| 10. | Milton Keynes |
The Next X Start-up Index ranks 61 UK cities across more than 20 metrics – including access to talent, coworking infrastructure, business survival rates and start-up density – to identify where SMEs are most likely to thrive.
Josh Arnold, Next X Research at BNP Paribas Real Estate commented: “While London remains the UK’s largest start-up market, there are regional markets that are developing distinctive, and expanding, start-up ecosystems. Our data shows that regional cities like Leeds, Bristol and Cambridge are outperforming on many metrics and driving sector-specific clustering.
“For the office market, this presents a clear signal: opportunities lie with understanding and delivering the supportive infrastructure that allows these high-growth businesses to thrive – whether that be flexible coworking offices, strong digital connectivity or purpose-built incubator hubs.
Simon Williams, Head of National Markets at BNP Paribas Real Estate added: “The strength of regional cities as start-up powerhouses is reshaping the real estate playbook. Occupiers are prioritising affordability, connectivity and access to skilled workforce, and that’s fuelling demand in places like Bristol, Leeds, and Edinburgh. There’s rental growth to be captured out there, with regional prime office rents projected to increase by up to 28% by 2029.
Spotlight on Leeds
Leeds has been highlighted by Next X as having strong demographics. A tenth of the population is accounted for by students and, when coupled with a particularly strong student retention rate, is leading to a growth in young, skilled workforce. Its 20–40-year-old population is due to grow 2.8% over the next five years.
In turn, Leeds has attracted a strong digital, media and tech presence, with companies like Channel 4 (relocating from London in 2019), Sky Digital, LeoVegas and PEXA.
In addition, flexible office space has grown extensively, with total serviced office square footage in the city doubling since 2020, to now account for a 3.7% share of total office stock. However, this still relatively undersupplied compared to Birmingham (5.3%) and Manchester (5.2%), indicating room for further growth.
Commenting on the Leeds market, Liam Ridley, Office Agency at BNP Paribas Real Estate commented: “Leeds is a standout example of what happens when strong talent pool, sector diversity and infrastructure converge. The city is attracting a new generation of occupiers from digital start-ups to health-tech scaleups who are struggling to secure space given the shortage of smaller suites and agile leases with the minimal flex options on the horizon. The operators who step in now with high-quality, move-in ready offerings will be the ones to capture the next wave of innovation-driven demand.”
Supportive planning system
Commenting on the planning system’s role in unlocking SME growth, Caroline McDade, Head of National Planning at BNP Paribas Real Estate added: “Planning has a pivotal role to play in enabling the UK’s next generation of business growth. We can see from the cities highlighted in the index are those making it easier to do business, with up -to-date Local Plans, flexible mixed-use zoning, proactive infrastructure delivery, and most importantly, a genuine commitment to placemaking. If we want to power the next wave of SME growth, planning policy must keep pace with how start-ups live, work and scale. Real estate needs a planning system that’s not just fit for purpose but fit for the future.
BNP Paribas Real Estate is based on Pavilion Avenue in the Purple Zone at UKREiiF 2025 and will be showcasing its Next X tool, which is guiding its occupier, investor, and developer clients towards future growth hotspots.
Explore the full findings of the Next X Start-up Index report and to see how the platform can support your real estate strategy, visit https://bnpp.lk/bnppre-nextx.
