15 Cheapest Places to Live in UK

As more people consider relocating, finding an affordable area has become a top priority. With the cost of living in the UK steadily rising, identifying the cheapest place to live in the UK can be challenging. Affordability is often the main concern for those looking to move, and many wonder: “Where is the cheapest place to live in the UK?”

Deciding whether to move homes can be challenging, especially in the current climate influenced by the pandemic. As the UK housing market begins to stabilize, many are considering a change in their living situation. One of the primary barriers to moving is affordability. With house prices in the UK having risen steadily over the years, finding an affordable option within your budget can be difficult.

In this article, we’ll explore some of the most budget-friendly places to live in the UK. By examining average house prices and the cost of living in these areas, we’ll help you identify where you can get the best value for your money.

Let’s dive into the most affordable places to live in the UK.

PE Ratio (Price-to-Earnings Ratio)

Determining the cost of living in a new area involves various factors. While the cost of housing represents the initial expense of moving, ongoing living costs are also crucial. One useful metric for understanding housing affordability is the “Price to Earnings” (PE) ratio, which compares the average cost of property in an area to the average annual income of its residents. Essentially, the PE ratio is calculated by dividing the average property price by the average annual earnings. For example, a PE ratio of 5 indicates that property prices are five times the average annual income.

Rental markets often reflect the overall property prices in an area, making PE ratios a valuable tool for assessing rental affordability as well. So, where is the most affordable place to live in the UK?

Here are 15 of the cheapest places to live in England, along with relevant data

Rank	Place	PE Ratio	Average House Price (£)	Average Monthly Rent (£)	Average Monthly Salary (£)
1	Durham, North East England	4	130,413	650	3,411
2	Belfast, Capital of Northern Ireland	5.1	235,560	495	3,591
3	Newcastle	5.7	210,000	650	4,162
4	Stirling	6.3	220,500	495	3,688
5	Lancaster	5.4	194,853	567	3,727
6	Cardiff	7.5	230,500	663	3,668
7	Dundee	5.6	187,387	794	3,852
8	Hull	3.5	141,437	470	3,995
9	Coventry	6.3	237,130	655	4,221
10	Lincoln	7.3	183,000	616	3,536
11	Liverpool	4.9	163,870	710	4,004
12	Nottingham	6.5	229,000	610	4,327
13	Manchester	7.9	226,155	830	4,215
14	Birmingham	7	267,000	766	4,327
15	Norwich	7.2	273,000	598	4,373

1. Durham, North East England

Average House Price: £130,413

Average Monthly Rent: £650

PE ratio: 4

Introduction: Durham is renowned for being the most affordable place to live in the UK in 2024. Located south of Newcastle upon Tyne in northeastern England, the city derives its name from the River Wear, which meanders around Durham Cathedral and Norman Castle. To the north of the castle, visitors can explore the beautiful gardens and maze at Crook Hall, a 13th-century mansion. Durham University, situated south of the river, boasts an impressive Oriental Museum with a rich collection of Asian, Egyptian, and Middle Eastern artifacts, as well as stunning tropical and woodland views in its Botanic Garden.

Cost of Living: Durham stands out as a popular and budget-friendly location, especially for students. The city offers a range of affordable housing options, with the average monthly rent for a one-bedroom apartment at £650, compared to £360 outside the city. A monthly travel pass costs £55, and basic utilities amount to approximately £235 per month. Overall, the average monthly cost of living in Durham is around £1230.

2. Belfast, Capital of Northern Ireland

Average House Price:  £235,560

Average Monthly Rent: £495

PE ratio: 5.1

Introduction: Belfast, the capital of Northern Ireland, offers an affordable living environment for newcomers. Known for its historic significance as the construction site of the RMS Titanic, the city has revitalized its dockyards and developed the Titanic Quarter. This area includes the Harland & Wolff Drawing Offices, Titanic Slipways, and Titanic Belfast, a museum dedicated to the ship. The Slipways now host open-air concerts, adding to the city’s vibrant cultural scene.

Cost of Living: Belfast is renowned for its low living costs, making it one of the most budget-friendly cities in the UK. The average rent for a one-bedroom flat in the city center is around £495, while outside the city it’s approximately £325. A monthly travel pass costs £50, and basic utilities amount to about £120. On average, monthly expenses in Belfast total around £1,320.

3. Newcastle

Average House Price:  £210,000

Average Monthly Rent: £650

PE ratio: 5.7

Introduction: Newcastle, located next to the River Tyne in North East England, is renowned for its affordable living expenses. Once famous for its shipbuilding and industry during the Industrial Revolution, Newcastle has evolved into a vibrant hub for business, the arts, and sciences. The iconic Gateshead Millennium Bridge, which spans the Tyne River, is celebrated for its innovative tilting design.

Cost of Living: Newcastle stands out as one of the cheapest places to live in the UK in 2024. With excellent healthcare and a range of affordable amenities, it offers significant value. The average rent for a one-bedroom apartment is £474 outside the city and £650 within. Monthly utility bills average around £130. The city also features reasonably priced dining options, entertainment, and fitness centers. Overall, the average cost of living in Newcastle is £1390.

4. Stirling

Average House Price:  £220,500

Average Monthly Rent: £700

PE ratio: 6.3

Introduction: Stirling, centrally located in Scotland, stands out as one of the cheapest places to live in the UK. Positioned 26 miles southeast of Glasgow and 37 miles northeast of Edinburgh, this city combines a hometown atmosphere with the conveniences of a modern metropolis.

Cost of Living: For a single person, the average monthly expenditure in Stirling is around £700, excluding rent and course fees. Renting a one-bedroom flat in Stirling typically costs £495 per month, with utilities adding approximately £105. Overall, the monthly cost of living in Stirling is about £1420, making it a highly affordable option among UK cities.

5. Lancaster

Average House Price:  £194,853

Average Monthly Rent: £567

PE ratio: 5.4

Introduction: Lancaster, known as one of the cheapest places to live in the UK, offers both affordability and historical charm. The city’s Lancaster Castle, with its old furnishings and 19th-century prison cells, beautifully overlooks the River Lune. Additionally, the City Museum, showcasing Georgian architecture, provides fascinating insights into the Lancastrian Legion.

Cost of Living: The average monthly rent in Lancaster is about £567 in the town center and £440 outside the city. Utility bills are approximately £172, making Lancaster an affordable option compared to other locations in the UK. For convenient city travel, a monthly pass costs just £80. Overall, the average monthly cost of living in Lancaster is around £1400, reinforcing its reputation as one of the cheapest places to live in the UK.

6. Cardiff

Average House Price:  £230,500

Average Monthly Rent: £663

PE ratio: 7.5

Introduction

Cardiff, the vibrant capital city of Wales, is located on the southern coast and blends rich history with modern development. It offers a strong cultural identity and numerous attractions, such as Cardiff Castle, the Principality Stadium, and the Wales Millennium Centre, catering to diverse interests. The city’s dining scene, nightlife, and cultural venues provide a range of experiences, while Cardiff University and Cardiff Metropolitan University add to its youthful energy.

Cost of Living

Cardiff stands out as one of the more affordable cities in the UK. The average cost for a one-bedroom apartment within the city is approximately £663, while outside the city center, it drops to about £504. Monthly utility bills typically amount to around £202. To comfortably cover living expenses in Cardiff, a monthly budget of at least £1,460 is recommended.

7. Dundee

Average House Price: £187,387

Average Monthly Rent: £794

PE ratio: 5.6

Introduction

Dundee, often hailed as the “City of Discovery,” boasts a rich history of notable innovations, including the development of postage stamps, wireless telegraphy, aspirin, and X-rays. Renowned for its pleasant climate, Dundee enjoys being one of Scotland’s sunniest cities—a rarity in the typically rainy British Isles. The city is also home to the University of Dundee, founded in 1881, along with several other higher education institutions.

Cost of Living

As one of the cheapest places to live in the UK, Dundee offers an attractive living experience with an average rent of £794. Both transportation and food costs are also budget-friendly, contributing to a monthly average expense of just £1545.

8. Hull

Average House Price: £141,437

Average Monthly Rent: £470

PE ratio: 3.5

Introduction: Hull, officially known as Kingston upon Hull, is a vibrant city in Yorkshire, England, located where the Hull and Humber rivers converge. Hull is undergoing significant transformation, boasting an increasing number of museums, many of which are free to visit. Among them, The Deep stands out as the world’s only submarine museum, showcasing cutting-edge exhibits.

Cost of Living: Hull is known for its affordability, with average monthly rents around £470. The city provides a cost-effective living environment, offering both historical charm and modern amenities. On average, monthly expenses in Hull amount to at least £1550.

9. Coventry

Average House Price: £237,130

Average Monthly Rent: £530

PE ratio: 6.3

Introduction: Coventry, located in the West Midlands of England, is a historic city renowned for its industrial past, medieval heritage, and contemporary revitalization. Although it was heavily bombed during World War II, Coventry has been rebuilt into a vibrant urban center that seamlessly blends historical charm with modern amenities. The city offers a variety of cultural attractions, including its striking cathedral, the medieval guildhall, and the Herbert Art Gallery and Museum.

Cost of Living: Coventry is noted for its affordability compared to other UK cities. Renting a one-bedroom apartment within the city costs approximately £655 per month, while outside the city center, the average rent is around £530 per month. Basic utility bills are estimated at £181 per month. Overall, the average monthly cost of living in Coventry is about £1,680, making it one of the most budget-friendly cities in the UK.

10. Lincoln

Average House Price: £212,000

Average Monthly Rent: £616

PE ratio: 7.3

Introduction: Lincoln, situated in the East Midlands of England, is a city steeped in history, tracing its roots back to Roman times. Renowned for its striking cathedral, which graces the skyline, Lincoln also boasts well-preserved medieval architecture and the ancient Lincoln Castle.

Cost of Living: Lincoln stands out as one of the cheapest places to live in the UK. When compared to other regions across Great Britain, it offers significant savings. The average monthly rent for a one-bedroom apartment in Lincoln is £616, which decreases to £471 if you opt for a residence outside the city. Essential utilities typically amount to around £135 per month. Overall, the cost of living in Lincoln is approximately £1675 per month.

11. Liverpool

Average House Price: £163,870

Average Monthly Rent: £710

PE ratio: 4.9

Introduction: Liverpool, a vibrant port city in northwest England and one of the eight core cities in the country, serves as the capital of Merseyside. Renowned for its rich cultural heritage, Liverpool is home to iconic landmarks like the Albert Dock, The Beatles, the Tate Gallery, and the Maritime Museum. The city also boasts stunning green spaces such as Croxteth Hall and Country Park and the historic Speke Hall.

Cost of Living: Liverpool is considered one of the cheapest places to live in the UK, making it an attractive option for those seeking affordable living. According to Numbeo’s index, the cost of living in Liverpool is about 20% lower than in London. The average monthly rent for a one-bedroom apartment, including utilities, is around £710. To comfortably live in Liverpool, you’ll need a budget of at least £1,750 per month.

12. Nottingham

Average House Price: £229,000

Average Monthly Rent: £610

PE ratio: 6.5

Introduction:
Nottinghamshire, located in the heart of England, is a county known for its mostly flat terrain, with elevations around 60 meters, except for the foothills of the Pennines in the west. It is a notable coal-producing region with numerous mining towns, and the River Trent is the primary waterway. The county also holds significance as an important agricultural area.

Cost of Living:
Nottingham is considered one of the more affordable cities to live in within the UK. The cost of living is relatively low, with a one-bedroom apartment costing approximately £610 per month in the city center and £472 outside the city. Monthly utility bills typically amount to around £156. On average, living expenses in Nottingham total about £1,789 per month.

13. Manchester

Average House Price: £226,155

Average Monthly Rent: £830

PE ratio: 7.9

Introduction: Manchester, known as the world’s first industrialized city, is a key transportation hub and a major commercial, financial, industrial, and cultural center in the United Kingdom. As an international metropolis, Manchester stands as a remarkable example of urban regeneration, where the rich history of the UK’s industrial era is still visible today.

Cost of Living: The cost of living in Manchester is relatively affordable, especially when compared to other major cities. Renting a one-bedroom apartment costs around £830 within the city and £548 in the suburbs. The average monthly utility bill for a family of four is approximately £125. Transportation and food expenses are also budget-friendly, with the total monthly cost of living in Manchester estimated at around £1,980.

14. Birmingham

Average House Price: $267,000

Average Monthly Rent: £766

PE ratio: 7

Introduction: Birmingham, the second-largest cosmopolitan city in the United Kingdom after London, is known for its vibrant and diverse community. With the largest young population in Europe, Birmingham has consistently been ranked as the UK city with the best quality of life by the Mercer Living Index for three consecutive years. The city is a hub for sports, hosting football and cricket matches alongside top international events. It also boasts a rich cultural scene, being home to renowned arts organizations such as the Birmingham Royal Ballet and the City of Birmingham Symphony Orchestra.

Cost of Living: Birmingham is one of the cheapest places to live in the UK, offering an affordable cost of living. A one-bedroom apartment costs around £766 in the city and £580 outside the city center. Monthly utility bills average approximately £142, while a monthly travel pass is available for just £65. Overall, the estimated monthly cost of living in Birmingham is about £2,010.

15. Norwich

Average House Price: £273,000

Average Monthly Rent: £598

PE ratio: 7.2

Introduction: Situated in the far east of England, Norwich is a charming city nestled beside a picturesque seaside and surrounded by The Broads, the largest wetland reserve in the United Kingdom. Renowned as the greenest city in the UK, Norwich is also celebrated for being one of the most attractive and affordable places to live in the country. A highlight of the city is Norwich Castle, a fortress with a distinctive design, built by order of William the Conqueror.

Cost of Living: In Norwich, UK, the cost of living is relatively affordable. A one-bedroom apartment near the city center typically costs around £598 per month, while similar apartments outside the main city average about £500. Monthly utility bills are approximately £140. Transportation and food expenses are also budget-friendly, with the overall average cost of living in Norwich being around £2200 per month.

Approach for Ranking the Most Cheapest Places to Live in the UK:

Ranking the cheapest cities to live in the UK involves evaluating crucial factors such as housing affordability (including rent and property prices), average wages, and the Price to Earnings Ratio. Data is usually sourced from reliable institutions like national statistics offices, cost-of-living indices, and real estate databases. By comparing these metrics across various cities, those with lower average costs in these categories are typically ranked as more affordable, making them appealing choices for individuals or families looking to manage living expenses efficiently.