The year 2024 is a tricky time in the United Kingdom in terms of the economy. So, it is not easy to decide where and when to move. As things stand, it is best to move to a place where you can comfortably afford the costs of products and services.
But finding a place you can afford based on your budget can be tough. Also, some factors determine how cheap or expensive an area is. One of them is the ‘Price to Earnings’ ratio, or PE, which refers to how much properties cost on average, compared to the average amount people living there earn each year.
While PE does not usually give you an accurate representation of an area’s affordability, it does give useful insight. For instance, if the PE ratio of an area is three (3) on average, it means housing costs are three times higher than what the residents earn yearly.
Therefore, below is a list of the top 7 cheapest areas to live in the UK.
1. Durham, North-East England
Average house price: £130,413
PE ratio: 4
Durham is unarguably one of the cheapest places to live. The city got its name from the River Wear that loops around Durham Cathedral and Norman Castle. It is especially a popular place for students due to its many good law schools and universities, particularly Durham University.
Living costs are affordable. For instance, the average rent of a 1BHK apartment in County Durham is £650 per month, while outside the city it is £360 per month. Also, basic utility costs around £235 per month, while the monthly travel pass costs £55.
2. Belfast
Average house price: £235,560
PE ratio: 5.1
Belfast is the capital of Northern Ireland. The city has a rich history as it was the melting pot of Roman, Viking and English influences over many centuries.
Belfast is also famous for its art galleries, international luxury shopping centres, prominent universities, educational centres, and various retail and service centres. When it comes to ease of travelling, the city is well connected to England and Scotland by ferry or air.
The average rent for a 1BHK apartment is £495, and outside the city, it is £325. Basic utilities cost about £120 per month, while the monthly travel pass is available for £50. Therefore, Belfast is a favourite city for families that want a place to settle.
3. Leicester
Average house price: £216,946
PE ratio: 8
If you are looking for a place to enjoy a blend of history, culture and great football, consider settling in Leicestershire. This city is also known for its coal mines and historic hosiery and knitwear industries. The streets are always bubbling with independent shops, cafes, and restaurants, offering a range of leisure activities.
The average rent for a one-bedroom flat in Leicester is £475, while the cost of utilities is approximately £100. In addition, a monthly travel pass costs £50.
4. Stirling
Average house price: £208,810
PE ratio: 2.73
Stirling is an upbeat city located in central Scotland. The city is 26 miles North-East of Glasgow and 37 miles North-West of Edinburgh. With the amenities of a modern metropolis, combined with a hometown feel, Stirling is one of the most affordable UK cities and has even been voted the happiest in Scotland.
The average rent for a one-bedroom flat is £495, and the cost of utilities is approximately £105. Also, the monthly travel pass costs £50.
5. Newcastle
Average house price: £202,247
PE ratio: 5.7
Newcastle upon Tyne is a university city located in North-East England, near the River Tyne. It was famous for its shipbuilding and manufacturing during the Industrial Revolution. But now, the city has shifted focus to business, arts and sciences. The Gateshead Millennium Bridge is an attraction, known for not only connecting two cities but also for its tilting aperture spanning across River Tyne.
The average rent for a one-bedroom apartment in the city costs £650 and £474 outside it. Also, the average primary utility bill costs £130 per month.
6. Lancaster
Average house price: £194,853
PE ratio: 5.8
This historic city is known for the 19th-century prison cells located in Lancaster Castle which offer a great view of the River Lune. Also, the city is famous for its furniture industries and synthetic fibres. There are also Roman and medieval attractions, with transportation links connecting various regions via railway and motorway.
The average monthly rent is only around £567 within the city and £440 outside of the city. Utility bills cost approximately £172, while a travel pass is an average £80 monthly. In other words, Lancaster offers affordable living for students and you can shop for groceries without breaking your bank account.
7. Cardiff
Average house price: £241,000
PE ratio: 7.8
Cardiff is the capital of Wales and is located near the Bristol Channel and the river Taff. It is also the largest city in Wales. This city is a hub of lawyers, media studies, and film direction. It also serves as an important commercial, cultural and administrative centre.
Famous for its coal mines and iron industries, you can get better job opportunities if you move to Cardiff. The average price for renting a one-bedroom apartment is about £663 inside the city and only £504 outside. Utility bills cost around £202 per month, while a travel pass throughout the city costs an average of £53.
