Cheapest areas to live in the UK including town with £120k homes and £599 rents – does your city make the list?

The Sun

20-07-2025

THE cheapest places to live in the UK have been revealed - with the winner boasting homes for an average of £120k and rents for less than £600.
The cost of buying and renting has risen dramatically across the country in recent years, with wages failing to keep pace.
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A new nationwide study now shows the cheapest areas to live in the UK compared to salaries, so you can find out if where you live is actually affordable - or whether it may be time to move.
Burnley, Lancashire, is Britain's most affordable place to live, according to Investing Insiders' cost of living index.
Its average house price is £120,719, while the average monthly cost of rent is £599.
The median weekly salary of the town's residents is £530, meaning the average house price is just under 4.5 times the amount the average person earns in a year there (£27,565.20).
It also takes locals just over a week to cover the average rent price on the median salary.
Kingston-upon-Hull came in second place, with the East Yorkshire city having higher weekly wages than Burnley at an average of £575.50.
However, house prices are more expensive at an average of £131,374, while average monthly rents are £642.
Nine out of the 10 cheapest places to live are located in Wales or the North of England, while the 10 most expensive places are all found in and around London.
Taking the third spot was Hartlepool, with the cheapest average monthly rent out of the top 10 at £546, while average house prices are £136,148.
But it also has the lowest weekly wage at £523.20.
5 things to check before applying for a mortgage
Cumberland came in fourth place, in part thanks to its weekly wages of £612.30, which were the highest out of the top 10.
Average house prices in the North West town are £165,099, and rent is £618 a month, which are both higher than in the other most affordable places.
Neath Port Talbot in South Wales is in fifth place, with wages averaging £601.90 per week, but house prices are also higher than most in the top 10 at £161,605.
Blaenau Gwent is in sixth place, ahead of Hyndburn and then County Durham.
Stoke-on-Trent came in ninth, and Sunderland rounds off the top 10.
The study also looked at the most expensive places to live in the UK, with the top 10 least affordable all in the capital.
The Royal Borough of Kensington and Chelsea is the most expensive place to live, with average house prices of £1,345,813 and average monthly private rent of £3,663, compared to a median weekly salary of £703.70.
Westminster, Camden, Hammersmith and Fulham, and Richmond upon Thames make up the bottom five, as each has an average house price of at least £750,000.
Investing Insiders founder Antonia Medlicott said: "These figures lay bare the widening gap between the UK's most and least affordable housing markets.
"It's shocking that a young professional in Westminster needs over
twenty years of net income to buy a typical flat, while someone in Sunderland can do the same in under five.
"Whether you're saving for a first home or debating a relocation, these numbers prove there are realistic paths to ownership, if you know where to look and how to play the system."
Lifetime ISA 'still in good working order'
The study also revealed that the Lifetime ISA cap - which means savers can only buy a house up to the value of £450,000 - still covers 85 per cent of areas in the UK.
It found that house prices in 54 out of 350 local authorities exceed the limit, including Westminster, Oxford, and Cambridge.
There have been calls to reform Lifetime ISAs in recent years, with experts and campaigners arguing that the current cap has not kept up with rising house prices and has led to thousands missing out on buying their first home.
The £450,000 limit has not changed since the LISA was first introduced in 2017.
'It's great to see that the Lifetime ISA is still in good working order for 85 per cent of the UK, and first-time buyers should look to maximise their usage of the £4,000 a year allowance," Ms Medlicott adds.
'However, for those who have reached that limit, already own a home, or are in an area where the house will exceed the £450,000 limit, it can be confusing what to do.
"Whilst there are many options available, a Stocks & Shares ISA can be hugely beneficial, as it is most useful when used for the long term, like owning a home.
'The historical performance shows that these investments are great when aiming for larger life goals such as saving for a home, and can allow you to achieve the necessary funds much quicker for a deposit.'
How to save for a home deposit
IT can be overwhelming to know where to even start when it comes to saving for a home deposit
Our Senior Consumer Reporter Blathnaid Corless shares some tips on how you can save to get on the housing ladder.
The first thing you'll need to do is set a savings target. A house deposit is typically 5-10% of the property value, so take a look at the average house prices in the areas you want to live and calculate how much you'll need to save.
From there, you should analyse your monthly or weekly spending to find areas where you could cut costs, such as eating out and takeaways, or any subscriptions you don't use.
You could cut the costs of your household bills by comparing providers for energy, internet and other utilities. Price comparison sites such as USwitch and MoneySuperMarket can compare prices for you to help you find the best deal.
Make sure you have the right savings account to maximise your money. A Lifetime ISA allows you to save up to £4,000 per year and receive a 25% government bonus.
However, you can only use this to buy a house worth up to £450,000, so it may not be the best option if you live in an expensive area or you want to buy a bigger property.
Some banks offer fixed-term or regular savings accounts with competitive rates which could also help you save.
If you're renting, you could also consider moving back in with parents or other family on a temporary basis to help you save.
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