The State of British High Streets in 2026

For generations, British high streets have been the heartbeat of their communities. From slow Saturday mornings at the local coffee shop to the stores and services people rely on every day, they have long shaped the character of towns and cities across the country. But over the last decade, the collapse of household names, disappearing banks and rows of empty shopfronts have all fuelled a growing sense that Britain’s town centres are in decline.

For small business owners, understanding today’s high street landscape is becoming increasingly complex. Local communities, spending habits and appetite for in-person shopping now vary significantly from place to place, meaning the traditional one-size-fits-all high street no longer applies. For businesses considering a physical presence, deciding where to set up has become a more nuanced decision.

To better understand where UK high streets are thriving and where opportunities are emerging, the team here at Capital on Tap have analysed 30 major UK cities using metrics including retail density, vacancy rates, business activity, footfall and local spending power. Alongside this, we surveyed 1,000 UK consumers to understand attitudes towards Britain’s high streets, including what people feel is missing, what they want to see less of and what would encourage them to visit more often.

The UK cities with the strongest high streets

To identify the cities with the strongest signs of high street health, we combined factors including retail density, vacancy rates, business activity, footfall and local spending power.

1. London

London ranks as the city with the strongest high streets. As the UK’s largest city by both population and economic output, London benefits from structural advantages that support a highly active high street ecosystem. It has the highest concentration of retail businesses per square kilometre (27.5) and the strongest spending power (£25,739 Gross Disposable Household Income per capita), both of which reflect the scale of demand across the city.

Property vacancy rates are also the lowest among the top-ranked cities at 7.4%, suggesting stronger occupancy and turnover across high street locations. Combined with positive business birth-to-death ratios and the only positive retail footfall growth in the group (+4.76%), London continues to show resilience despite wider national pressures on high streets.

2. Manchester

Manchester takes second place overall. The city's business birth-to-death ratio (1.24) is the highest among the top three cities. It points to a consistently high level of business formation and replacement across the city. Manchester also records a very high level of retail concentration, with 26.7 active retail businesses per square kilometre, closely matching London and significantly above other major UK cities in the dataset. 

While retail footfall has shifted by -6.46% over the past year, this is a smaller decline than in many other UK cities in the dataset, where falls of more than 10% are recorded. This suggests relatively stronger resilience in in-person retail activity compared with a broader national trend.

3. Glasgow

Glasgow rounds out the top three. While smaller in scale than London or Manchester, Glasgow’s performance is driven by strong business activity and ongoing renewal. It records a business birth-to-death ratio of 1.21, meaning that for every 10 businesses closing, around 12 new businesses are opening.

Retail footfall has shifted by -3.5% over the past year, representing a smaller decline than many other cities in the ranking, while spending power reaches £17,463 GDHI per capita. Together, these indicators suggest a high street environment that continues to show resilience despite wider pressures across the sector.

While city-level data highlights where high streets are performing strongly, consumer perceptions tell a different side of the story. Strong performance metrics do not always translate into how people feel about their local areas, making public sentiment an important part of understanding today’s high street landscape.

How Brits describe the state of their local high street

Our survey showed that 43% of Brits say they have a positive view of their local high street. However, when we dig into this and ask them to describe the current state of it, "declining" was the most common answer selected by respondents (38%). This was the most common response in Cambridge, where 56% of residents said this, followed closely by "struggling" (35%).

Interestingly, 27% of Brits say they are using their high street less often than they did 12 months ago, and this increasing to 43% less than 10 years ago. When asked why, the findings suggest that convenience is only part of the story. Whilst 28% of people prefer to shop online, the most common reasons for visiting less often centre around the physical high street itself. Empty shop units (34%), lack of variety (33%) and dissatisfaction with the current mix of businesses (24%) all rank above online preference.

There are also clear differences across generations. Gen Z (28%) and millennials (37%) are visiting less often because they prefer shopping online. Meanwhile, Generation X (37%) and Baby Boomers (52%) blame empty shop units as the reason they’re avoiding their high street, suggesting older consumers may be responding more directly to visible signs of decline in their local area.

What people feel high streets have too much of and too little of

For SME’s wanting to set up shop and make a positive difference to their high street, 27% of Brits said there are too few independent shops. They would like to see more businesses in the form of clothing stores, bakeries and butchers. 

On the other hand, when asked what they see too much of on their local high street, vape shops and tobacconists ranked highest, with 38% of respondents selecting them. Charity shops (30%) and beauty businesses such as nail salons and barbers (29%) followed closely behind.

Taken together, the findings suggest many consumers feel their high streets are becoming less varied and increasingly repetitive.

For SMEs, this may represent one of the clearest signals. In many areas, consumers are not simply asking for more places to shop. They are looking for businesses that feel more relevant to their communities and offer something distinct from the increasingly uniform retail mix many people feel has emerged.

What would encourage people back to the high street?

We dug further into this, asking what would encourage locals back to their high streets, with more independent shops being the main draw.

Demand for independent businesses is particularly strong in Cambridge (44%), Glasgow (42%), Oxford (40%), Manchester (38%) and Brighton & Hove (36%).

The UK cities with the most untapped potential

In order to better understand the cities with the most untapped potential for SMEs, we analysed factors including vacancy rates, retail density, spending power and changing footfall patterns. For this, we placed additional weighting on business competition and local spending power, recognising that available space alone does not create opportunity. A high street may have empty units, but long-term potential still depends on whether there is a customer base there to support growth.

While higher vacancy rates and falling footfall can often be viewed as warning signs of a declining high street, they may also reflect changing market conditions. In some locations, lower retail density and greater space availability can create opportunities for SMEs entering less saturated markets.

1. Sunderland

Sunderland takes the top spot for untapped high street potential. While its 16.8% vacancy rate may initially appear challenging, it also signals a high level of available retail space and lower barriers to entry for incoming businesses.

The city’s strongest differentiator is its low retail density. With just 2.9 active retail businesses per square kilometre, Sunderland has one of the least saturated retail environments in the ranking. Combined with stable local spending power, this creates conditions where SMEs may face less direct competition and greater opportunity to establish themselves.

2. Wakefield

Wakefield presents a similar picture. The city ranks as one of the UK's more challenged high streets, with a 14.4% vacancy rate and a notable decline in footfall. However, it also records the lowest retail density in the study, with just 0.9 active retail businesses per square kilometre.

For SMEs, that lack of competition creates a different dynamic. Rather than entering an overcrowded market, businesses may find opportunities to establish themselves in areas where consumers have fewer local options. The challenge is clear, but so is the potential for businesses that can respond to local demand.

3. Preston

Unlike Sunderland and Wakefield, Preston does not appear among the most pressured high streets, which may explain why it performs strongly for untapped potential. The city combines relatively high vacancy levels with lower retail density and stable spending power, creating conditions where businesses may benefit from both available space and less crowded competition.

How SMEs can unlock high street growth opportunities

Alex Miles, Chief Operating Officer at Capital on Tap concludes: “For small businesses considering a high street presence, understanding what people actually want from their local area can be just as important as footfall figures or rental costs. Our findings suggest consumers are not simply looking for more places to shop. They're looking for reasons to return.

“There is a clear appetite for independent businesses, alongside demand for experiences and services that feel more connected to local communities. For SMEs, this presents an opportunity. Businesses that can fill gaps in the local market and offer something people feel is currently missing may be better placed to build loyal customer bases and create repeat visits.

“For business owners planning to expand onto the high street, success increasingly comes down to understanding local demand rather than assuming one location strategy fits all. 

“Looking beyond footfall figures, researching local competition, identifying gaps in the market and understanding consumer habits can help businesses make more informed decisions. 

“It's also important to think about the practical realities of growth. Expanding into a physical location often comes with upfront costs, from fit-outs and stock purchases to supplier payments and marketing. Having access to flexible funding tools, such as a business credit card, can help SMEs manage cash flow and spread costs while investing in growth."

Sources and methodology

To understand the changing state of Britain’s high streets, Capital on Tap analysed 30 major UK cities using a range of retail, business and economic indicators.

To assess high street performance, we analysed vacancy rates, retail business density, business activity, retail footfall and local spending power. Vacancy rate estimates and Gross Disposable Household Income (GDHI) per capita figures were sourced from Centre for Cities. Retail business counts were sourced via Nomis UK Business Counts data, while business births and deaths were taken from Office for National Statistics business demography datasets.

Using active retail business figures and city size data from World Population Review, we calculated the number of retail businesses per square kilometre to assess retail concentration and levels of competition. We also calculated a business birth-to-death ratio for each location to understand levels of entrepreneurial activity and market renewal.

To understand changes in consumer behaviour, we analysed annual retail footfall trends using Office for National Statistics data, comparing town and city centre footfall figures over a 12-month period. Population estimates used throughout the analysis were sourced from Worldometers.

For our "Strongest High Streets" ranking, all metrics were normalised and combined into a weighted index score. For our "Untapped Potential" ranking, additional weighting was given to retail competition and local spending power, recognising that available space alone does not create opportunity and that long-term SME potential also depends on market demand.

Our consumer survey was conducted among 1,000 UK adults and explored shopping habits, perceptions of local high streets, business preferences and barriers to visiting more often.

All data was collected in May 2026.