The Cheapest Place To Live in the UK in 2022

Looking for the cheapest place to live in the UK isn’t easy. Especially with inflation and the cost of living crisis, it seems like anywhere would be expensive. However, with work-from-home becoming standard, being able to move to cheapest areas can be fully taken advantage of. In our guide, we’ll walk you through the cheapest places to live in the UK.

Why Move To a Cheaper Place in the UK?

Moving to a cheaper place to live in the UK can be really beneficial for both your income and your overall cost of living. It can be a really strategic move, whether working in a remote job or just downsizing to take advantage of your house’s value.

What Benefits Are There in Cheaper Areas?

Living in a cheaper area of the country can be really beneficial, especially if you are retiring or are just looking to save a bit more. In the cost of living crisis we’re currently experiencing, there really a lot of pros to moving to a cheaper area:

• Cheaper Houses
  If you’re a first-time buyer, a cheaper area can provide much easier access to getting your foot on the property ladder. With lower house prices, you can put down a much lower mortgage deposit than otherwise which leaves a lot more money left over (especially after moving costs!)


• Cheaper Rents
  As well as cheaper house prices, you can also benefit from cheaper rents. This can make deposits a lot easier to save for and reduce your overall cost of living so you have more disposable income. Jump on a rental website to see and compare the rents in different areas.


• Calmer and Friendlier
  Cheaper places to live tend to be a lot calmer and friendlier than in an industrial city life. Comparing London to somewhere more out of the way can really be eye-opening when it comes to the culture.


• Lower Bills
  Even though bills don’t tend to change across the country, there are areas that do benefit from much lower utility bills than others. This can really free up your income you spend on living costs significantly.

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What Are the Drawbacks?

That being said, there are also some cons to take note of when it comes to moving to a cheaper area. These are things to consider when you’re house viewing and checking out the neighbourhood.

• Lower House Values
  If you’re looking to invest in a property over the long-term, you’re unlikely to have a large return on your investment in a cheaper area. Since the house prices are lower, this typically means they also grow at a slower rate.


• Fewer Visitor Attractions
  If you enjoy the theatre or museums, you might find there aren’t as many in cheaper areas of the UK. This can be a bit of a drawback if you enjoy visiting to have a look at attractions and you might have to drive around to find them.


• Lower Salaries
  If you are working in a job in a cheaper area, you might find that your income is much lower. This can be a drawback since how much you earn will make everything relatively more expensive if it’s less.

• What To Consider To Move Somewhere Cheaper?

  Before making the decision to move to a cheaper place in the UK, you should really consider a number of factors about your living costs. These are really important to plan out since it can really make a difference on whether you think the move to a cheaper place in the UK is worth it.

  Income

  Your income is definitely important when you start looking for properties in cheaper parts of the UK. When looking for cheaper places to live in, you will want to consider the price-to-earnings ratio (P/E) to work out how the area compares in terms of your actual income on average.

  What Is the Price-to-Earnings Ratio (P/E)? The price-to-earnings ratio shows you how the average house prices in an area compare to the average income. For example, if there is a price-to-earning ratio that is 4, that means the house prices are 4 times more expensive than the average salary in the area. When looking at the cheapest places to live in the UK, the price-to-earnings ratio generally shouldn’t come above 6!

  Food Shopping

  Food shopping should also come into your plans before moving. You should check out which supermarkets are nearby so you know what choice you have around you. You should also have a look to see if there are any local markets that might offer even better prices.

  Council Tax

  The council tax band you’ll find yourself in if you move to a cheaper part of the UK might be completely different to the one you’ve been in before. You should look out for which tax bands are the general case over the area and try and aim for a property between bands A-D. You should watch out for falling into a high council tax band and paying the same amount on your property as before!

  Check Out Our Council Tax Guide!

  Utility Bills

  Average energy consumption and prices do tend to change slightly across the country although the biggest difference is in the size of your property. However, you can really see a difference in your water rates since the average water bill does change depending on where you live in the UK.

  Transport

  Transport is another factor that should come into your decision making. You want to make sure that where you’re moving too is well connected and has good bus links across the area. You also need to consider your car as well as the price of petrol where you are planning on moving to.

  Going Out

  Take a look around the neighbourhood and make sure you’re happy with the amount of restaurants, pubs, and other nightlife venues. This really helps to give you an impression of what your everyday life will be like in a new area.

  Safety

  Safety is a vital part of deciding whether to move somewhere or not. Make sure that where you move to is considered safe and has a good reputation for being a secure place to live. Double check the crime rates so you have a good impression of where to move to.

  Where Is the Cheapest Place To Live in the UK?

  Taking a look at the cheapest places to live in the UK, we’ve made a list of 5 areas in the UK that have both the lowest price-to-earnings ratio to give you a good idea of where the cheapest places are.

  1. Londonderry - P/E 4.7
     Also known as Derry, Londonderry is considered one of the major Northern Irish cities. It’s steeped in history and boasts a vibrant modern culture that makes the city a warm and pleasant place to reside.
  2. Carlisle - P/E 4.8
     With average house prices at £167,500, Carlisle isn’t just an affordable place to live in the UK, but also set in a beautiful part of the county in Cumbria.
  3. Bradford - P/E 4.7
     On the Western side of Northern England, Bradford is another popular English city that offers great affordability to its residents. It’s also due to be named the UK City of Culture for 2025.
  4. Doncaster - P/E 5.2
     Another part of Yorkshire that is affordable, Doncaster has a great climate compared with the rest of the North. You also have a wide selection of visitor attractions such as Doncaster Racecourse and the Doncaster Museum and Art Gallery.
  5. Hartlepool - P/E 4.6
     Hartlepool is a great seaside town that has great affordability for its residents. With significant investment made to it in recent years, Hartlepool is really on its way to becoming a great place to live.

  Where Is the Cheapest Place To Rent in the UK?

  Of course, if you don’t have the money for deposit just yet, looking for the cheapest places to rent in the UK is probably your main aim. In the UK, rents have been going up because of the inflation, but here we’ve laid out how the average rents are looking currently in the UK:

  What Is the Average Rent in the UK?

  According to the HomeLet Rental Index, the average UK rent in 2022 is currently £1,103 a month, an almost 11% increase on people’s rent contracts from where it was in April 2021. Here’s a graph showing the average rents across the different regions in the UK:

  Last updated: 01/08/2022.
  Source: HomeLet.

  Where Is the Cheapest Place To Rent in the UK?

  Although the average rent across the entire country is quite high, it’s not the cheapest you can find. According to Rentabout, here are the cheapest cities to rent a place in the UK:

  Top 8 Cheapest Rents in the UK

  City	Average Rent per Month
  Shildon	£376
  Ferryhill	£377
  Bishop Auckland	£377
  Willington	£387
  Lancashire	£394
  Keighley	£395
  Hull	£399
  Bridlington	£404

  Last updated: 01/08/2022.
  Source: Rentround.