There is no single best industry to buy in London. The official data shows clear differences, though. Across the UK, information and communication firms had the highest high-growth rate in 2024 (9.2%), property and health had the lowest death rates (6.2% and 6.5%), and transport and storage had the highest (16.5%), above its own birth rate. This guide from The London Report compares ten sectors using Office for National Statistics (ONS) and Department for Business and Trade (DBT) figures, then tells you what to check before you buy in each one.
It is part of a series with our guides to buying a business in London, how to finance a London business purchase and the benefits of buying an established business in London. This is general information, not financial or legal advice.
Key takeaways
- The ONS publishes industry rates for the UK as a whole, not London. We use them as a guide and say so. London itself has the most businesses of any region (1.042 million) and the highest regional birth rate (12.7%).
- Information and communication (9.2%) and finance and insurance (7.3%) had the highest high-growth rates in 2024. Professional services (6.2%) was also above the 4.9% UK average.
- Accommodation and food has high births (14.9%) and high deaths (12.9%). Property and health had the lowest death rates (6.2% and 6.5%).
- Transport and storage had the highest death rate (16.5%), and goods vehicle operator licences are not transferable.
- A good sector is one you understand and can fund. Check the licences, lease and staff for any target.
How we compared the industries
We used three official sources. The ONS bulletin gives UK business births, deaths and high-growth rates by industry for 2024 (ONS, Business demography, UK: 2024, released 20 November 2025). The DBT estimates show where UK small and medium-sized businesses (SMEs) operate (DBT Business Population Estimates 2025). The ONS bulletin also tells us that London had the highest regional birth rate at 12.7%, with professional, scientific and technical firms the main industry behind those births at 17.7%.
There are limits. The industry figures are UK-wide, so a sector can behave differently in London. ONS industry groups do not match every label in this guide, so the mapping is approximate. And the rates describe all businesses in a sector, not the quality of a particular business for sale.
Industry scorecard: births, deaths and high growth
The table shows ten industry groups, using ONS 2024 figures. Birth and death rates are the share of active businesses that started or ceased in the year. The high-growth rate is the share of firms with 10 or more employees growing quickly in employment.
| Industry (ONS group) | Active (000s) | Birth rate | Death rate | High-growth | What it suggests |
|---|---|---|---|---|---|
| Retail | 241 | 11.4% | 10.9% | 3.9% | Busy but crowded; births only just above deaths |
| Accommodation and food | 203 | 14.9% | 12.9% | 4.4% | High churn in both directions |
| Information and communication | 211 | 10.7% | 9.8% | 9.2% | Highest growth rate of any group |
| Finance and insurance | 38 | 6.6% | 6.7% | 7.3% | Small, tightly regulated, fast-growing firms |
| Property | 131 | 10.2% | 6.2% | 2.9% | Low closures, slow growth |
| Professional, scientific and technical | 466 | 10.5% | 9.2% | 6.2% | Largest group; strong growth |
| Education | 49 | 10.6% | 7.5% | 5.3% | Steadier, with low closure rates |
| Health | 125 | 9.4% | 6.5% | 4.2% | Low closures; often regulated |
| Arts, entertainment, recreation and other services | 207 | 9.7% | 8.4% | 5.3% | Includes creative, leisure and personal services |
| Transport and storage (incl. postal) | 138 | 15.6% | 16.5% | 4.8% | Deaths exceeded births in 2024 |
Sector by sector
Retail
Retail is big (241,000 active UK businesses) and busy: a birth rate of 11.4% against a death rate of 10.9%. That means plenty to buy, and plenty of competition. London shops can benefit from foot traffic, but rent and lease terms often decide profit, so read the lease closely. If you plan to add online sales, see our e-commerce business guide, and for stock control see the inventory control software.
Hospitality, food and beverage
The ONS groups accommodation and food together. It had one of the highest birth rates (14.9%) and a high death rate (12.9%), so it is a sector of fast turnover. Three-quarters of its new businesses had two or more employees, so staff matter (ONS). If you buy a restaurant, cafe or bar you will need to register as a food business with your local authority (GOV.UK), and for alcohol the premises licence may need transferring (GOV.UK). For hotels, see our hotel business guide.
Technology and startups
Information and communication had the highest high-growth rate of any industry in 2024, at 9.2%, against 4.9% for all UK firms. Its death rate (9.8%) was close to the average. Growth does not make a price fair: many tech businesses depend on a few people, contracts or platforms, so check customer concentration and who owns the intellectual property.
Financial services
Finance and insurance is a small group (38,000 active businesses) with a 7.3% high-growth rate, and its birth and death rates were almost level (6.6% and 6.7%). It is regulated, so buying a firm that is authorised by the Financial Conduct Authority may need regulatory approval. Take specialist advice before you agree terms (FCA: firms).
Health and wellness
Health had a low death rate (6.5%) and a birth rate of 9.4%. Some health services must be registered with the Care Quality Commission, so check which registration applies and what happens to it on a sale (CQC: registration). Gyms, therapy and wellness businesses largely sit under arts, entertainment, recreation and other services (death rate 8.4%). For the city’s wellness scene, see our guide to health and wellness events in London.
Real estate and property management
Property had the lowest death rate of the ten groups (6.2%) and a birth rate of 10.2%, but a high-growth rate of only 2.9%. That suggests stability rather than fast growth. Check client money arrangements, management contracts and the length of any landlord agreements before you value the business.
Education and training
Education had a death rate of 7.5% and a birth rate of 10.6%, with 5.3% of larger firms growing fast. Ask which courses, contracts or accreditations the income depends on, and whether they transfer to a new owner.
Creative and media
Creative businesses sit partly in information and communication and partly in arts, entertainment, recreation and other services. The first has the highest growth rate (9.2%); the second had a death rate of 8.4%. Income often depends on a few clients or on named individuals, so ask for a handover period.
Transport and logistics
This group had the highest death rate of all (16.5%), above its birth rate (15.6%), though the ONS says deaths fell sharply from the 2023 level (ONS). Goods vehicle operator licences are not transferable, and operating as a new or different entity without informing a traffic commissioner is against the law, so a new licence for the new entity must be obtained before you operate (GOV.UK: goods vehicle operator licensing guide). Plan the licence into your timetable.
Sector-specific checks before you buy
| Sector | Check before you buy | Source |
|---|---|---|
| Hospitality and food | Food business registration with the local authority; alcohol premises licence transfer where relevant | GOV.UK: food registration; GOV.UK: alcohol licensing |
| Transport and logistics | Operator licences are not transferable; a new entity needs a new licence before operating | GOV.UK: goods vehicle operator licensing |
| Health | Whether the business is registered with the CQC and how registration changes on sale | CQC: registration |
| Financial services | Whether the firm is FCA-authorised and whether approval is needed for a change of ownership | FCA: firms |
| All sectors: staff | Jobs usually transfer with their terms under TUPE | GOV.UK: TUPE |
| All sectors: VAT and records | Going-concern VAT rules; company records and charges | GOV.UK: VAT Notice 700/9; GOV.UK: Companies House |
How to choose a sector
- Start with what you know. Experience matters more than any trend, and lenders look for it.
- Read the rates, not the headlines. A sector with births far above deaths can still be crowded. A low-closure sector can still be slow-growing.
- Check the permissions. A missing licence can remove most of the value.
- Match the sector to your funding. Property-heavy businesses may suit a commercial mortgage; others suit business loans. See how to finance a London business purchase.
- Insure it. Typical covers include public liability insurance, employers’ liability insurance (needed if you employ staff) and professional indemnity insurance for advice-based firms.
- Follow the process. Our guide to buying a business in London covers the steps, and our profitable business ideas page covers other routes.
Conclusion
The official figures show that sectors differ a lot in churn, closure and growth, and they show London as the UK’s biggest and busiest market. They do not tell you which individual business is worth buying. Use the sector view to narrow your search, then check the accounts, lease, licences and staff for each target. For more guides, see the business section at The London Report.
FAQ
What are the top industries for businesses for sale in London?
The official data does not rank sectors for London alone. UK-wide, information and communication had the highest high-growth rate in 2024 (9.2%), property and health had the lowest death rates (6.2% and 6.5%), and professional services was the largest group by active businesses (ONS).
Which industry has the lowest risk of closing?
Of the ten groups in our table, property had the lowest death rate in 2024 (6.2%), followed by health (6.5%). Those are sector averages, so they do not guarantee that a particular business is safe (ONS).
Which industry is growing fastest?
Information and communication, with 9.2% of larger firms classed as high-growth in 2024, then finance and insurance at 7.3% (ONS).
Is buying a restaurant or cafe in London a good idea?
It can work, but turnover is high: accommodation and food had a 14.9% birth rate and a 12.9% death rate in 2024 (ONS). You will need food business registration (GOV.UK) and possibly an alcohol licence transfer (GOV.UK).
Can I take over a haulage or courier business?
Yes, but operator licences are not transferable, so a new entity needs a new licence before it operates (GOV.UK).
Do I need special approval to buy a financial services firm?
You may. Regulated firms can need approval for a change of ownership, so take specialist advice and check with the regulator (FCA).
How do I finance the purchase?
Most buyers combine a bank or specialist loan, seller finance and their own cash. See our guide to how to finance a London business purchase.
Are the ONS figures specific to London?
No. The industry rates are for the UK. The ONS does give regional totals: London had the highest birth rate in 2024 (12.7%) (ONS).
Where do I start when buying a business?
Read our guide to buying a business in London, which sets out the steps from criteria to completion.
Editor’s note: what changed in this update
On 18 October 2026 we rewrote this page. The earlier version described ten sectors in general terms (for example, that retail and tech were booming) without sources. We replaced those claims with ONS and DBT figures, added a scorecard, three charts and a checklist of sector-specific permissions, and replaced the embedded Pinterest pins with licensed photos. We also added links to related guides.
Sources
- Office for National Statistics: Business demography, UK: 2024 (released 20 November 2025), Tables 2, 5 and 7
- GOV.UK: Business Population Estimates 2025 (2 October 2025)
- GOV.UK: Food business registration; GOV.UK: Alcohol licensing; GOV.UK: Goods vehicle operator licensing guide
- Care Quality Commission: registration; Financial Conduct Authority: firms
- GOV.UK: Business transfers, takeovers and TUPE; GOV.UK: VAT Notice 700/9; GOV.UK: Get information about a company
Author Bio
The London Report Editorial Team provides practical business insights, guides and market trends for entrepreneurs across the UK. Our content is designed to help readers make informed and confident business decisions.
Disclaimer
This article is for general information only and is not financial, legal or tax advice. Statistics describe whole industries, not individual businesses, and rules change, so check official sources and speak to a qualified adviser before you buy.
Last updated: 18 October 2026
