10 Cheapest Places to Live in the UK

With the average house prices in UK cities growing by 10.3% in recent years while average earnings have grown by just 2.1%, affordability is more important now than ever. Whether you are renting or are a homeowner, where you live can significantly impact on monthly rental costs or house prices. In this article, we reveal the 10 cheapest places to live in the UK.

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Calculating affordability using the Price to Earnings ratio

The consensus is that house prices are cheaper in the north in comparison to the south of the UK and while there is some general truth to this, this can vary and it’s best to take a case-by-case approach when assessing affordability. Contrary to popular belief, a 2021 report by the UK’s largest mortgage lender, Halifax, found that cities, including some in southern regions, were amongst some of the cheapest places to live in the UK. The report measures the average house price in each city against the average salary in order to assess affordability. This is known as the Price to Earnings, or PE, ratio.

The Most Affordable Cities In The UK

Below are top 10 most affordable locations:

Londonderry, Northern Ireland

PE ratio: 4.7

Average house price: £155,917

Taking first place as the cheapest place to live in the UK is the modern city of Londonderry. Located in Northern Ireland, Londonderry is the second-largest city in Northern Ireland and the fifth-largest city on the island of Ireland. Boasting the lowest Price to Earnings ratio, the city has been able to retain its title as the cheapest place to live in the UK for the third time. The city is the home of Ireland’s only completely intact historic Walled City, the Derry Girls, a cutting-edge food scene and more.

Carlisle, Cumbria

PE ratio: 4.8

Average house price: £163,232

Taking second place on the list of the cheapest places to live in the UK with a PE ratio of 4.8, is the Cumbria-based cathedral city of Carlisle. As well as being the third most northerly city in England, Carlisle boasts a wealth of history and culture. Not to mention, it is home to The McVities Carlisle factory, the oldest biscuit factory in the world.

Bradford, Yorkshire and Humberside

PE ratio: 4.8

Average house price: £164,410

Bradford matches Carlisle’s PE ratio of 4.8, making it one of cheapest places to live in the UK. Boasting a rich and varied history, the West Yorkshire city has plenty to offer. Not only is it Britain’s Curry Capital top-rated authentic restaurants that consistently come out on top in the annual competition that judges who makes the best curries across the country, but it also holds the title of being the youngest city in the UK, with almost a quarter of its population under 16.

Stirling, Scotland

PE ratio: 5.4

Average house price: £208,927

Stirling, Scotland claims 4th place on the list of the cheapest place to live in the UK. The historic city lies in the heart of Scotland and is home to two of the country’s best-known landmarks, Stirling Castle and the National Wallace Monument stands. Thanks to its beautiful scenery, it’s a great place to live for nature lovers and bikers alike.

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Aberdeen, Scotland

PE ratio: 5.4

Average house price: £205,199

Located in the Northeast of Scotland, is the historic port city of Aberdeen which claims 5th place on the list of the cheapest places to live in the UK. If you are looking to relocate here, you’ll be glad to know that it has been repeatedly rated as the safest city in the UK. For nature lovers, you’ll be glad to know that it has a national park that is double the size of the Lake District, not to mention it’s a great location for dolphin spotting.

Glasgow, Scotland

PE ratio: 5.4

Average house price: £196,625

Coming in 6th place is the port city of Glasgow. There is a lot to love about living in Glasgow. Not only is it an affordable place to live, it is also a true gem when it comes to art, culture and music. Glasgow’s Gaelic name, Glaschu, means “Green Space” so it’s no wonder it boasts over 90 parks and gardens.

Perth, Scotland

PE ratio: 5.5

Average house price: £203,229

Perth is 7th on our list of cheapest place to live in the UK. The picturesque Scottish city boasts beautiful Georgian and Victorian architecture and a rich history. With a thriving arts and culture scene, some of the best restaurants and easy access to some of Scotland’s most breath-taking scenery, it’s no wonder it is consistently high ranking in quality of life surveys.

Inverness, Scotland

PE ratio: 5.6

Average house price: £191,840

Inverness ranks 8th on the cheapest places to live in the UK list. Known as the ‘Capital of the Highlands’, Inverness is a great base to for anyone wishing to explore the Scottish Highlands. Not to mention, the famous Loch Ness is right on your doorstep – just a mere 20 minutes away. It’s also well connected with great schools plus lots to see and do.

Hull, Yorkshire and Humberside

PE ratio: 5.6

Average house price: £156,424

Hull is the 9th cheapest place to live in the UK and performs well on affordability, especially housing. The port city is named after the River Hull and is home to The Deep, a huge aquarium with over 3000 creatures including sharks and penguins. The city was also announced as The City of Culture back in 2017, facilitating funding to improve its facilities and infrastructure.

Dundee, Scotland

PE ratio: 5.8

Average house price: £181,150

Claiming 10th place is Dundee, Scotland. The a coastal city is located in Eastern Scotland and is the fourth largest city of Scotland by population. It boasts a vibrant and modern city but still remains one of the most affordable places to live in the UK. It has claimed the top spot as the best place in live in Scotland in recent years thanks to its excellent schools, low crime rates and friendly locals.

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Whether you are looking to relocate or are simply curious about the cheapest places to live in the UK, we hope this article has been helpful.

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