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The other English contenders are Chester, East Kent, Hastings and Bexhill-on-Sea, Hull, Leicester, Plymouth, and Southend-on-Sea.
BBC: Portsmouth Harbour
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Roy Bates' funeral service is due to take place at Southend-on-Sea Crematorium next Wednesday.
BBC: 'Prince of Sealand' Roy Bates dies in Essex
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However, Southend-on-Sea Borough Council, which said its Margaret Thatcher House was no longer fit for purpose, will look to keep the name.
BBC: Margaret Thatcher House to be demolished in Southend
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The English contenders for the 2017 title are Chester, East Kent, Hastings and Bexhill-on-Sea, Hull, Leicester, Plymouth, Portsmouth and Southampton, and Southend-on-Sea.
BBC: UK City of Culture 2017 contenders announced
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Jack Fitzsimmons, 27, got up at 05:30 GMT to leave his home in Southend-on-Sea, Essex, in order to see Met Locomotive No 1.
BBC: Steam train returns to London Underground - 150 years on
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Protester Dominic Burrows, 45, from Southend-on-Sea, who wore a V for Vendetta mask, said he was happy to demonstrate peacefully and silently over what he saw as the grand way in which her death was being marked.
BBC: Margaret Thatcher: London halts for ceremonial funeral
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Another woman says she had her eyes set on a little cottage in Leigh-on-Sea near Southend.
BBC: Why have the white British left London?
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Other places bidding for the 2017 title are East Kent - covering Ashford, Canterbury, Dover, Folkestone and Thanet - Hastings and Bexhill on Sea, Portsmouth and Southampton and Southend on Sea.
BBC: The Dylan Thomas Centre in Swansea