Online business has given small and medium-sized enterprises (SMEs) more options as to where they can locate, according to one expert.
The Forum of Private Business states that although buying premises in a desirable location may be preferable, recent interest rate rises mean that more SMEs are looking for other options.
Matt Hardman, spokesperson for the FPB, said that whereas many SMEs would in the past have considered a city centre location to raise their profile, this has changed due to the internet.
"The internet has changed that massively so you've got a lot more freedom about where you locate," he said.
He added that up until March of this year there had been an increasing trend for businesses to buy premises rather than let but high interest rates have made buyers more wary.
"There is a preference for buying but there is a lack of availability of premises. People are waiting on the market to see which way interest rates go."
A recent study by the Organisation for Economic Co-operation and Development found that in addition to recent interest rate rises, energy bills and food prices had increased by well over four per cent in the last year.
