The Future of Small Towns May Be Living Above the Shop Again

The Future of Small Towns May Be Living Above the Shop Again

Across Britain there are small towns that seem, at first glance, economically improbable, too remote, too small, too bypassed to thrive in the conventional sense. The train station closed decades ago, the main road no longer passes through, the industries faded, and the resident population shrank or aged, while empty shopfronts appeared one by one.

And yet some of these places remain stubbornly alive. Bishop’s Castle, in south Shropshire, is one of them.

On paper, it should not really work. The population is tiny, the high street has its share of shuttered shops and struggling businesses, and some ventures arrive full of optimism only to disappear quietly a year later. But at the same time, the fantastic pubs are busy and live music thrives, festivals are well attended and theatre and talks regularly sell out, while visitors come to walk in the hills, swim in rivers, browse bookshops, sit in cafés, and spend long evenings with friends in this beautiful place.

People travel here deliberately, and that matters.

Many conversations about failing high streets still begin from an outdated assumption: that a small town should primarily sustain itself through the everyday needs of its local population, with a baker, an ironmonger, and practical shops serving local routines.

There is understandable affection for that vision, and many older residents remember when this was possible and mourn its loss deeply. But the economic conditions that supported those towns have changed fundamentally through online retail, supermarket consolidation, changing work patterns, car dependency, rising costs, and shrinking margins, and wishing for the return of an older model does not necessarily bring it back.

The question for places like Bishop’s Castle may no longer simply be, “What does the town need?” It may instead be, “Why would somebody choose to come here?”

Increasingly, that is what keeps rural places alive.

What Bishop’s Castle quietly demonstrates is that people will travel for somewhere distinctive, and they will drive for hours for atmosphere, beauty, conversation, music, books, landscape, folklore, or simply the feeling that something more human is happening there.

Places like the Poetry Pharmacy have discovered this firsthand, because people do not only come to buy things, they come to feel something.

This is not unique to one business, but visible across the town in the success of the pubs and the Town Hall events, in the appetite for live music and theatre, and in the walkers, wild swimmers, artists, writers, and visitors drawn by something difficult to quantify but immediately recognisable when you encounter it: a sense of identity, a point of view, a feeling.

And yet there is another part of this story that is almost never discussed when people talk about saving rural high streets. Living above the shop.

We were only able to experiment with a business in what is, frankly, a very off-the-beaten-track tiny town because we lived above it, and that old arrangement, once entirely ordinary across Britain, suddenly became the thing that made risk possible.

One building, one mortgage, and home and work combined.

Historically this was completely normal; bakers lived above bakeries, shopkeepers above shops, and makers above workshops, while high streets were not purely commercial strips emptied at the end of the day, but mixed, inhabited places with lights upstairs and life continuing after closing time.

Ironically, many small towns still contain exactly these kinds of buildings.

In Bishop’s Castle there are entire premises with accommodation above available for prices that would seem unimaginable in larger towns, while shops occasionally appear for rent at figures lower than a city parking space and some businesses come onto the market astonishingly cheaply.

Contrary to what many people assume, many very small businesses pay little or no business rates at all. In England, properties with a rateable value under £12,000 can qualify for 100% Small Business Rate Relief, with tapered support continuing up to £15,000.

The real obstacle, in our experience, was not affordability, it was getting finance. Despite being financially stable and able to afford an ordinary residential mortgage, securing lending on a mixed residential-commercial property proved extraordinarily difficult, and we found ourselves pushed toward specialist products carrying higher risk assumptions and higher costs, including interest-only arrangements associated with what used to be called sub-prime lending.

The system seems to treat the idea of living above your own business as unusual, unstable, or eccentric.

Why is this not talked about more openly? If government is serious about helping rural high streets survive, this should be central to the conversation, and not simply regeneration language, funding pots, and consultations, but practical support for mixed-use living through mortgage products designed for people combining home and small business, renovation support for buildings with flats above shops, and policies that recognise that modern rural economies are often hybrid by necessity.

Many people in places like Bishop’s Castle already piece together several forms of work at once, combining retail and events, hospitality and making, writing and workshops, seasonal tourism and online income, and the future of small towns may not lie in recreating the old high street exactly as it was, but in creating conditions flexible enough for new forms of rural life to emerge.

At the same time, these towns may need to think differently about what kinds of businesses truly belong there.

Without a clear sense of identity, empty shops are filled largely by chance, and chance is not always a good curator, because some businesses simply do not connect to the reason people are actually visiting.

But when a town begins to understand what it already is, different possibilities emerge, and seasonal pop-ups aligned with festivals, artist residencies in empty units, folk craft spaces, listening cafés, wild swimming hubs, and small press takeovers all become imaginable, while temporary uses can keep buildings alive and allow people to test ideas without catastrophic financial risk.

Rather than waiting indefinitely for the perfect long-term tenant, landlords could become part of a more flexible ecosystem of short-term and seasonal use, and empty shops could become active windows into the town’s cultural life rather than symbols of decline.

Because this is the deeper point.

Places like Bishop’s Castle are not failing versions of larger towns, but becoming something else entirely:

Not retail centres in the conventional sense, but destinations built around atmosphere, culture, landscape, conversation, creativity, and human scale.

The irony is that many of these places are not lacking in appetite or imagination, because people already come, spend money, and care deeply about the experiences these towns offer.

“Build it and they will come” sounds naive until you realise that, in some places, it is already happening, and the challenge is understanding what “it” actually is.

And perhaps part of the answer begins with something surprisingly simple: letting people live above the shop again.