The difference between villein and freeman lessened but landlords usually still had profits of villein bondage, such as heriot, merchet, and chevage.

A class of laborers was arising who depended entirely on the wages of industry for their subsistence. The cloth workers in rural areas were isolated and weak and often at the mercy of middlemen for employment and the amount of their wages. When rural laborers went to towns to seek employment in the new industries, they would work at first for any rate. This deepened the cleavage of the classes in the towns. The artificers in the town and the cottagers and laborers in the country lived from hand to mouth, on the edge of survival, but better off than the old, the diseased, the widows, and the orphans. However, the 1400s were the most prosperous time for laborers considering their wages and the prices of food. Meat and poultry were plentiful and grain prices low.

Social mobility was most possible in the towns, where distinctions were usually only of wealth. So a poor apprentice could aspire to become a master, a member of the livery of his company, a member of the council, an alderman, a mayor, and then an esquire for life. The distance between baron and a country knight and between a yeoman and knight was wider. Manor custom was strong. But a yeoman could give his sons a chance to become gentlemen by entering them in a trade in a town, sending them to university, or to war. Every freeman was to some extent a soldier, and to some extent a lawyer, serving in the county or borough courts. A burgess, with his workshop or warehouse, was trained in warlike exercises, and he could keep his own accounts, and make his own will and other legal documents, with the aid of a scrivener or a chaplain, who could supply an outline of form. But law was growing as a profession. Old-established London families began to choose the law as a profession for their sons, in preference to an apprenticeship in trade. Many borough burgesses in Parliament were attorneys.

In London, shopkeepers appealed to passersby to buy their goods, sometimes even seizing people by the sleeve. The drapers had several roomy shops containing shelves piled with cloths of all colors and grades, tapestries, pillows, blankets, bed draperies, and 'bankers and dorsers' to soften hard wooden benches. A rear storeroom held more cloth for import or export. Many shops of skinners were on Fur Row. There were shops of leather sellers, hosiers, gold and silver cups, and silks. At the Stocks Market were fishmongers, butchers, and poulterers. London grocers imported spices, canvas, ropery, potions, unguents, soap, confections, garlic, cabbages, onions, apples, oranges, almonds, figs, dates, raisins, dyestuffs, woad, madder (plant for medicine and dye), scarlet grains, saffron, iron, and steel. They were retailers as well as wholesalers and had shops selling honey, licorice, salt, vinegar, rice, sugar loaves, syrups, spices, garden seeds, dyes, alum, soap, brimstone, paper, varnish, canvas, rope, musk, incense, treacle of Genoa, and mercury. The Grocers did some money lending, usually at 12% interest. The guilds did not restrict themselves to dealing in the goods for which they had a right of inspection, and so many dealt in wine that it was a medium of exchange. There was no sharp distinction between retail and wholesale trading.

In London, grocers sold herbs for medicinal as well as eating purposes. Breadcarts sold penny wheat loaves. Foreigners set up stalls on certain days of the week to sell meat, canvas, linen, cloth, ironmongery, and lead. There were great houses, churches, monasteries, inns, guildhalls, warehouses, and the King's Beam for weighing wool to be exported. In 1410, the Guildhall of London was built through contributions, proceeds of fines, and lastly, to finish it, special fees imposed on apprenticeships, deeds, wills, and letters-patent. The Mercers and Goldsmiths were in the prosperous part of town. The Goldsmiths' shops sold gold and silver plate, jewels, rings, water pitchers, drinking goblets, basins to hold water for the hands, and covered saltcellars. The grain market was on Cornhill. Halfway up the street, there was a supply of water which had been brought up in pipes. On the top of the hill was a cage where riotous folk had been incarcerated by the night watch and the stocks and pillory, where fraudulent schemers were exposed to ridicule. No work was to be done on Sundays, but some did work surreptitiously. The barbers kept their shops open in defiance of the church. Outside the London city walls were tenements, the Smithfield cattle market, Westminster Hall, green fields of crops, and some marsh land.

On the Thames River to London were large ships with cargoes; small boats rowed by tough boatmen offering passage for a penny; small private barges of great men with carved wood, gay banners, and oarsmen with velvet gowns; the banks covered with masts and tackle; the nineteen arch London Bridge supporting a street of shops and houses and a drawbridge in the middle; quays; warehouses, and great cranes lifting bales from ship to wharf. Merchant guilds which imported or exported each had their own wharves and warehouses. Downstream, pirates hung on gallows at the low-water mark to remain until three tides had overflowed their bodies. A climate change of about 1 1/2 degree Celcius lower caused the Thames to regularly freeze over in winter.

The large scale of London trade promoted the specialization of the manufacturer versus the merchant versus the shipper. Merchants had enough wealth to make loans to the government or for new commercial enterprises. Local reputation on general, depended upon a combination of wealth, trustworthiness of character, and public spirit; it rose and fell with business success. Some London merchants were knighted by the King. Many bought country estates and turned themselves into gentry.

The king granted London all common soils, improvements, wastes, streets, and ways in London and in the adjacent waters of the Thames River and all the profits and rents to be derived therefrom. Later the king granted London the liberty to purchase lands and tenements worth up to 2,667s. yearly. With this power, London had obtained all the essential features of a corporation: a seal, the right to make by-laws, the power to purchase lands and hold them "to them and their successors" (not simply their heirs, which is an individual and hereditary succession only), the power to sue and be sued in its own name, and the perpetual succession implied in the power of filling up vacancies by election. Since these powers were not granted by charters, London is a corporation by prescription. In 1446, the liverymen obtained the right with the council to elect the mayor, the sheriff, and certain other corporate officers.

Many boroughs sought and obtained formal incorporation with the same essential features as London. This tied up the loose language of their early charters of liberties. Often, a borough would have its own resident Justice of the Peace. Each incorporation involved a review by a Justice of the Peace to make sure the charter of incorporation rule didn't conflict with the law of the nation. A borough typically had a mayor accompanied by his personal sword- bearer and serjeants-at-mace bearing the borough regalia, bailiffs, a sheriff, and chamberlains or a steward for financial assistance. At many boroughs, aldermen, assisted by their constables, kept the peace in their separate wards. There might be coroners, a recorder, and a town clerk, with a host of lesser officials including beadles, aletasters, sealers, searchers [inspectors], weighers and keepers of the market, ferrymen and porters, clock-keepers and criers, paviors [maintained the roads], scavengers and other street cleaners, gatekeepers and watchmen of several ranks and kinds. A wealthy borough would have a chaplain and two or three minstrels. The mayor replaced the bailiffs as the chief magistracy.

In all towns, the wealthiest and most influential guilds were the merchant traders of mercers, drapers, grocers, and goldsmiths. From their ranks came most of the mayors, and many began to intermarry with the country knights and gentry. Next came the shopholders of skinners, tailors, ironmongers, and corvisors [shoemakers]. Thirdly came the humbler artisans, the sellers of victuals, small shopkeepers, apprentices, and journeymen on the rise. Lastly came unskilled laborers, who lived in crowded tenements and hired themselves out. The first three groups were the free men who voted, paid scot and bore lot, and belonged to guilds. Scot was a ratable proportion in the payments levied from the town for local or national purposes. Merchant guilds in some towns merged their existence into the town corporation, and their guild halls became the common halls of the town, and their property became town property.