With almost all households feeling the pinch this year, we reveal the most wallet-friendly regions for Brits – and break down essential spending in different areas.
Middlesbrough is the best-value place to live in the UK, according to new research.
Known for its strong industrial heritage and being the birthplace of Captain James Cook, this large town in North Yorkshire is apparently the number one choice for those looking to keep living costs down.
Next up, Sunderland and Newcastle come second and third in terms of affordability.
In contrast, London is unsurprisingly the most expensive place to live in the UK, with Brighton and Bristol being the next most painful spots for residents’ finances.
What determines affordability?
These results are based on a report from card solutions company takepayments, which analysed data from 34 major cities.
The experts examined factors such as house prices, average salaries, transport costs and typical living expenses.
Based on these findings, the researchers awarded each city an affordability score out of 10.
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So, where are the best places to live if you’re on a tight budget?
|
Rank |
Area |
Affordability score |
|
1 |
Middlesbrough |
6.51 |
|
2 |
Sunderland |
6.3 |
|
3 |
Newcastle |
6.11 |
|
4 |
Lisburn |
6.07 |
|
5 |
Aberdeen |
5.93 |
|
6 |
Warrington |
5.93 |
|
7 |
Norwich |
5.71 |
|
8 |
Glasgow |
5.68 |
|
9 |
Wolverhampton |
5.53 |
|
10 |
Leicester |
5.5 |
Source: takepayments
Perhaps unsurprisingly, the UK’s three most affordable regions are in the North East of England – a part of the world famed for its low cost of living and reasonable property prices.
According to the findings, Middlesbrough’s residents pay an average of £139,855 in property prices and £1,357 per year in Council Tax.
Meanwhile, those in Sunderland pay out £141,716 for property and £1,149 in Council Tax.
Interestingly, however, Middlesbrough and Sunderland also have some of the lowest salaries in the UK: £36,649 and £36,404 respectively.
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The UK’s 10 least affordable cities
But, where are the costliest places to set up home?
|
Rank |
City |
Affordability score |
|
1 |
London |
3.12 |
|
2 |
Brighton |
3.5 |
|
3 |
Bristol |
4.15 |
|
4 |
Manchester |
4.56 |
|
5 |
Portsmouth |
4.62 |
|
6 |
Plymouth |
4.81 |
|
7 |
Leeds |
4.85 |
|
8 |
Edinburgh |
4.88 |
|
9 |
Birmingham |
5 |
|
10 |
Luton |
5.06 |
Source: takepayments
As you might expect, London tops the property price charts, with an average house price of £516,710.
Likewise, London, Brighton and Bristol have rents triple those of the UK’s cheapest cities.
High salaries not everything
It’s easy to assume that high salaries are the Holy Grail when it comes to affordability and disposable income.
However, this is clearly not the case.
London, Brighton and Bristol have some of the highest average salaries in the study at £58,163, £46,059 and £43,164 respectively.
The least affordable Northern cities
Although most Brits regard the North as a cheaper alternative to other parts of the UK, Manchester and Leeds are clearly exceptions to this rule.
According to the research, Leeds has the UK’s seventh highest average property prices at £283,822.
Meanwhile, Manchester takes seventh place for private rents, with residents handing over £1,191 per month to their landlords.
What about energy bills?
With the Energy Price Cap increasing by 6.4% in April, it’s interesting to see how various regions stood out in this area.
The researchers found that Yorkshire has the most affordable energy bills.
Meanwhile, the East of England has the dubious honour of being the most expensive region.
How does Council Tax compare?
With the average annual bill for a Band D property standing at £2,281 for the 2025/26 tax year, Council Tax is another source of misery for most households.
Luckily for the residents of Sunderland, they have the cheapest annual bills, according to the data.
In contrast, the researchers found those living in Swansea face the highest bills.
Petrol costs
Based on the average price for a tank of unleaded petrol, Southampton is the costliest city for fuel at 141.3p per litre, closely followed by Bournemouth (140.8p) and Bristol (140.6p).
Scotland and Northern Ireland have the lowest prices, with Belfast (132p) being the cheapest, followed by Lisburn (132.1p) and Aberdeen (137.1p).
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Car insurance
Londoners pay the highest premiums in the UK, with the West Midlands ranking as the second most expensive.
In contrast, the South West is the cheapest region for car insurance.
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The cost of a pint
While Council Tax, rent and travel costs are a necessary evil for most of us, there is certainly more to life.
The researchers also looked into so-called ‘non-essential’ spending, such as the cost of buying a pint and going out for dinner.
Here is what they found...
|
|
The cost of a pint |
The price of a meal-out for two people |
The cost of a coffee |
The price of a gym subscription |
|
Cheapest |
Derby |
Luton |
Leicester |
Warrington |
|
Most expensive |
London |
London |
London |
London |
Source: takepayments
As you can see from the table above, London came in as the most expensive in each of these key categories.
Have your say
Do you live in any of these regions? We’d love to hear your experiences of key costs and household bills.
If you’d like more information on costs in your area, you can visit takepayments’ interactive map.