The Rise of the Smaller City: Why More People Are Choosing to Work Closer to Home

The Rise of the Smaller City: Why More People Are Choosing to Work Closer to Home

In a world where work no longer ties us to a single location, more people are leaving the hustle and high costs of large cities behind in favour of the convenience, cost savings, and lifestyle opportunities that smaller cities have to offer.

This shift isn’t just about preference - it’s about practicality. With flexible working on the rise, fewer people need to live near traditional business hubs. Instead, they’re choosing locations that offer the best of both worlds: professional opportunities and a better lifestyle.

This isn’t a new phenomenon - it’s been building for years. Between 2011 and 2021, several small cities saw rapid population growth including Cambridge (17.6%), Peterborough (17.5%), and Milton Keynes (15.3%). Luton, Leicester and Northampton also saw notable growth.

In contrast, London’s population grew by just 7.7% in the same period. While the capital remains the UK’s largest city, it now holds only 14% of the country’s population, a sharp drop from 20% a century ago.

Did Covid-19 Accelerate the Trend?

The pandemic certainly played a role. At a time when close proximity to others was both discouraged and feared, many reconsidered city life. This led to a temporary population drop in London of around 75,000 people - the equivalent of the entire town of Tunbridge Wells.

However, while London has since rebounded, many professionals who left haven’t returned. Instead, they’ve settled into a new way of living - one where smaller cities provide affordability, flexibility, and better work-life balance.

But this isn’t just about Covid. 

The rise of remote and hybrid work, rising living costs, and the desire for more space have all contributed to working people choosing smaller cities over large metropolitan areas.

In particular, ease of accessibility is a huge factor. Many smaller cities are compact, meaning people can live closer to their workplace and therefore reduce travel time.

And while smaller cities may not have as many transport options as their larger counterparts, with fewer people comes less traffic, which makes them more efficient and commuter-friendly for many working-age people.

Why More People are Choosing Smaller Cities

• Work nearer to where you live. Research suggests that long commutes increase stress, fatigue, and lower job satisfaction. In contrast, those who live nearer to where they work benefit from shorter commutes, better health and quality of life, and reduced travel costs. In smaller cities, walking or cycling to work is often possible, adding further health and financial benefits.
  
• Save money. Housing and general expenses are often lower in smaller cities, enabling a higher quality of life without the financial pressures of larger cities. As for commuting to work, the average price of a litre of petrol hit a six-month high in February 2025, while rail fares rose by 4.6% in March 2025. Living closer to work in a city with less urban sprawl reduces these expenses, leaving more money for lifestyle choices.
  
• Less reliance on vehicles. The number of UK households with two or more cars has surged to 34% (compared to just 8% in the 1970s). But owning multiple cars is expensive - the average cost of MOT, servicing, and repairs was more than £600 per car in 2022, not including fuel and insurance. Living in a compact city with a shorter commute and local amenities nearby could mean fewer cars per household and significant savings.
  
• More free time. Doesn’t everyone wish they had more free time? Time is our most valuable asset, yet long commutes steal hours from our day. Even cutting 30 minutes off a daily commute adds up to 2.5 hours saved per week - time that could be spent with family, on hobbies, or simply relaxing.
  
• Reduced pollutants. Fewer long commutes means less pollution, lower carbon footprints, and reduced congestion. Smaller cities may not have London-style transport systems, but their compact nature means key destinations are often walkable or cyclable, minimising reliance on cars and public transport.

Where Does UBC Fit In?

If you hadn’t already noticed, the majority of UBC’s flexible workspace locations are in towns and small cities across the UK.

We love larger cities too - that’s why you’ll find office space in London, Edinburgh, and Leeds. But we have always appreciated the enormous benefits of running a business in a smaller city or town, especially:

• Ease of access
• Lower costs
• Better work-life balance
• A more relaxed pace of life 
• Access to nature

Take Solihull, for example. Our flexible workspace at Birmingham Business Park offers quick access to the M6/M42 interchange, Birmingham International Station, and the new HS2 Interchange Station (which promises travel to London in just 38 minutes).

Or Tunbridge Wells, famous for its stunning parks, historic charm, and thriving entrepreneurial scene. Our Pantiles Chambers workspace is perfectly positioned in the heart of the town, combining business with lifestyle.

And then there’s Southampton, a medium-sized city with great connectivity and an unbeatable lifestyle. Our Ocean Village workspace sits right on the waterfront, surrounded by dining, entertainment, and beautiful walks.

Is It Time to Rethink Where You Work?

More professionals are realising that they don’t need to be tied to a major metropolitan hub to build a successful career or run a thriving business.

With shorter commutes, lower costs, and a better work-life balance, smaller cities and towns are becoming the preferred choice for modern professionals.

At UBC, we believe that work should fit around your lifestyle, not the other way around. Whether you’re looking for accessibility, affordability, or a better work-life balance - or all of the above - smaller cities have plenty to offer. So, is it time to rethink where you work? The answer might be closer to home than you think.

Take a closer look at our locations across the UK and feel free to call, email, live chat, or simply pop in for a coffee and a tour. We look forward to seeing you!