How Much Does a Leased Line Cost in the UK in 2025?

If you run a business today, you already know how much a slow or unreliable internet connection can cripple operations. Cloud apps lag, remote calls drop, and productivity grinds to a halt — all because your broadband can’t keep up. The truth is, reliable connectivity is no longer a luxury: it’s what keeps modern businesses, well, in business. That’s why so many UK companies are now looking at leased lines. But the first question I always get is the same: “How much does a leased line actually cost?”

As someone who has spent two decades in the business telecommunications industry, I can tell you that there’s no single answer. Costs vary depending on your business’s location, bandwidth, and contract length. But here’s the good news: once you understand what drives those costs, it’s much easier to find a package that fits your budget and delivers the reliability your business depends on.

In this article, I’ll break down what you can expect to pay for a leased line in 2025, what factors really influence price, and how to decide whether it’s the right move for your business.

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What This Blog Covers:

• Average Leased Line Prices for UK Businesses
• Key Pricing Factors Every Business Should Know
• Why Leased Lines Are Pricier — and What You Get in Return
• The Best Alternatives to Leased Lines (and When to Use Them)
• The Bottom Line on Leased Line Costs

Average Leased Line Prices for UK Businesses

Before we dive in, it’s worth keeping in mind that leased line pricing varies dramatically, and no two businesses will receive the same invoice. So, the prices you’re about to see are basic ballpark figures that you should think about when putting your budget together.

Here’s what the average UK SMB can expect to pay for a leased line this year:

• 100Mbps leased line: starting from around £200 per month.
• 1Gbps leased line: typically from £300 per month.
• 10Gbps leased line: this is much higher enterprise-level pricing, well above £1,000 per month.

Again, these are starting points. Your final monthly bill depends heavily on where your business is located and the length of your contract.

Key Pricing Factors Every Business Should Know

How Location Affects Leased Line Costs

One of the first things I tell customers is that location really has a big impact on the cost of a leased line. If you’re in London or another well-served urban area, prices tend to be lower because the fibre infrastructure is already there. However, if you’re in a more rural area, there’s a good chance the cost is going to be higher.

In some cases, additional works — like digging up roads or running new fibre ducts — can add thousands to installation fees. Most of the time, these are covered under “free installation” on 3- or 5-year contracts. But every now and then, a site survey flags extra work that falls outside that allowance, and you could find yourself way above your budget.

I’ve seen this happen with a customer right next to the M25, where we needed to do additional work. They were fine paying it once they understood why, but it’s something worth being aware of before you sign anything.

The Impact of Contract Term on Your Monthly Price

Another factor that influences cost is how long you’re prepared to commit to the service. Here’s the rule of thumb:

• 3-year contracts: You tend to get free installation under this contract length. That alone can save you £4,000–£6,000.
• 5-year contracts: Sometimes a bit cheaper monthly, but I wouldn’t recommend them. Five years is a long time, infrastructure changes fast, and you don’t want to be locked in if something better becomes available within that period.
• 1-year contracts: These have higher monthly costs plus installation charges on top.

Personally, I always advise customers that three years is the sweet spot. You save on installation without being tied down too long in a market that’s always changing.

Leased Line Installation Times, Equipment, and Extra Costs

There are a few more points people often miss when budgeting for a leased line:

• Installation time: It takes about 90 days to get a leased line installed. If you’re moving offices, plan ahead. Don’t leave it until the last minute.
• Routers: Some providers charge extra. With us at Babble, we include enterprise-grade Cisco routers at no extra cost.
• End-of-life products: Fibre to the Cabinet (FTTC) and Asymmetric digital subscriber line (ADSL) are being phased out as part of the PSTN switch-off. If you’re still on these, it’s time to look at Single Order Generic Ethernet Access (SoGEA) or fibre – which we’ll unpack in a bit.

Why Leased Lines Are Pricier — and What You Get in Return

Look, I’ll be the first person to say that leased lines don’t come cheap. When I tell a customer that a leased line is going to cost them five times more than their current broadband, most of them are ready to run in the opposite direction. And I get it, but here’s the thing: you’re not just paying for “internet.” You’re paying for efficiency, reliability, and peace of mind.

The value goes beyond the monthly bill:

• Productivity gains: If you’re an architect or print business moving big files, a leased line saves hours of staff time and allows you to get things done much quicker. That efficiency pays back the investment.
• Reliability: Normal broadband can slow down every afternoon when the kids come home from school and everyone logs on to Netflix or Xbox. A leased line is dedicated to you, so you don’t get that “shared network” slowdown. Outages are also rare and usually only caused by power cuts or someone accidentally digging through a cable.
• Symmetrical speeds: With broadband, uploads are a fraction of downloads. With leased lines, you get the same speed both ways — whether it’s 100Mbps or 1Gbps. That matters if you’re backing up to the cloud or running video calls all day.
• Security: Because you’re not on the public network, you reduce your exposure. That matters when you’re running cloud apps or VPNs.

So yes, a leased line costs more — but it also gives you a level of control and stability broadband can’t match.

The Best Alternatives to Leased Lines (and When to Use Them)

Now, I’m going to say something you probably wouldn’t expect in the name of transparency: not every SMB needs to invest in a leased line.

Here are your options:

• Fibre-to-the-Premises (FTTP): If you’ve got FTTP available, 99% of SMBs will be absolutely fine with it. You can get gigabit speeds, it’s cheaper, and for most offices with 10–15 users, it’ll handle everything you throw at it. The only catch is that upload speeds are capped (usually around 220Mbps), and because it’s on the public network, you don’t get the same guarantees and peace of mind.
• SoGEA: This is a data-only broadband service that provides high-speed internet access. It’s a common replacement for FTTC as part of the PSTN switch-off because it doesn’t rely on traditional phone lines. While this option is good for smaller sites, it’s not a long-term solution – especially for growing or larger teams.
• 5G and 4G broadband: For businesses that are in rural areas or where fibre isn’t an option, this works just fine. However, the downside is that it’s nowhere near as reliable as fibre. If the mast goes down or coverage is patchy, your business could face some serious downtime.
• Starlink (satellite broadband): Some businesses are starting to use it, especially in very remote locations. We don’t sell it, but it’s out there as an option. Speeds are decent, but again, you don’t get the guarantees of a leased line.

The Bottom Line on Leased Line Costs

So, how much does a leased line cost in 2025? Well, for most UK businesses, prices start from around £200 a month, but the real question isn’t about cost — it’s about value. If your business relies on consistent uptime, fast uploads, or secure access to cloud services, a leased line is essentially a safeguard for your productivity and reputation.

Too many small businesses put up with unreliable broadband and the daily frustrations that come with it: slow speeds, dropped calls, wasted time. If that sounds familiar, it’s time to take a closer look at your connectivity options and invest in something that actually supports how you work today.

As a solution specialist at Babble, I spend my days helping businesses across the UK find the right connectivity for their needs, and it’s not about going for the most expensive option. Whether that’s a leased line, FTTP, or another setup entirely, my goal is to help you make an informed, future-proof choice.

If you’re ready to explore what a leased line (or a suitable alternative) could look like for your business, get in touch with our team. We’ll review your location, requirements, and budget — and give you clear advice on the best way forward (with no strings attached). Because when it comes to connectivity, the cheapest choice isn’t always the smartest — but the right one always pays off.