Low-Code vs Custom Software - UK Business Guide 2026

In 2024, 63% of UK businesses reported using low-code or no-code platforms to build applications, up from 41% in 2022 (Gartner). From London startups to Manchester councils, organisations are embracing these tools to create custom development software without deep coding knowledge.

But what's driving this shift, and when should businesses still opt for traditional custom software development? Let's explore.

What Are Low-Code and No-Code Platforms?

Low-Code Platforms

Low-code platforms such as OutSystems and Mendix require minimal coding for complex workflows. They are primarily used by IT teams to accelerate development whilst maintaining technical flexibility.

No-Code Platforms

No-code platforms such as Bubble and Airtable use fully visual, drag-and-drop interfaces that empower non-technical staff to build their own tools, no developer required.

A Real-World Example

A Birmingham SME automated its entire inventory management system using Airtable in just 3 days, a project that would traditionally have cost £15,000 as a custom software build.

Why UK Businesses Are Adopting Low-Code and No-Code Tools

Speed and Cost Efficiency

• Build apps up to 10x faster than traditional coding
• Reduce development costs by 50–70% (Forrester)

For businesses that need to move quickly and keep budgets lean, this advantage is significant.

Democratisation of Technology

Marketing, HR, and operations teams can now create their own internal tools without waiting for an IT team or an external developer. A London agency's sales team, for example, built a fully functional client portal using Bubble, entirely in-house.

Scalability

Cloud-based low-code and no-code platforms grow with your business. As your user base or data volume increases, most platforms scale without requiring a full rebuild.

The Limitations: When to Choose Custom Software Development

Low-code and no-code are powerful, but they are not the right answer for every situation.

Complex Integrations

If your business relies on legacy systems or niche APIs, low-code platforms often struggle to connect reliably. Custom software development gives you full control over how your systems talk to each other.

Advanced Security Requirements

Industries with strict compliance needs, such as fintech or healthcare, frequently outgrow no-code solutions.

"We switched to custom software development after hitting no-code's limits for GDPR-compliant patient data handling." — Leeds healthcare CEO

Ultra-High Performance at Scale

If your application needs to serve 100,000 or more daily users, no-code platforms typically cannot deliver the performance, reliability, or optimisation that a purpose-built custom solution can.

The UK Market Outlook for Low-Code and No-Code

Government and Public Sector Adoption

45% of UK councils now use low-code platforms to deliver citizen-facing services, a sign that these tools have moved well beyond startup experimentation into mainstream institutional use.

Sector-Specific Trends

• Fintech: Low-code for rapid prototyping; custom software for production-grade applications
• Retail: No-code loyalty apps and Shopify-based store tools are increasingly common

What the Data Predicts

By 2026, IDC predicts that 80% of UK SMEs will use low-code or no-code platforms for at least 50% of their new applications. Understanding where these tools excel, and where they fall short, will be a key competitive advantage.

How to Get Started With the Right Approach

Step 1 — Assess Your Needs

Need a simple workflow tool or internal form? Start with a no-code platform. Building something complex with integrations or compliance requirements? Consider low-code, custom software, or a hybrid approach.

Step 2 — Train Your Teams

Platforms like Microsoft Power Apps offer free UK webinars and training resources to help non-technical staff get up to speed quickly.

Step 3 — Partner Wisely

Some custom software development companies including Merto Solutions now offer low-code integration services alongside traditional builds. This means you do not have to choose one or the other; a hybrid approach is often the most cost-effective path forward.

Ready to Build Your Solution?

Whether you need low-code speed or custom software power, the right approach depends entirely on your business, your users, and your long-term goals.

Our UK team can help you work out exactly which path makes sense with no pushy sales, just honest expert advice tailored to your business.

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👉 Get in touch today — and let's find the right solution for your business.