Three of the cheapest places to live in the UK

Ever wondered where the cheapest places to live in the UK are? With the nation currently facing an all-time high for cost of living, major cities like London are unaffordable for many – especially the younger Gen Z and Millennial generations.

In his blog we’ll take a look at average house prices and the cost of living in certain areas to see how Gen-Z can save the most money.

We will cover locations and costs suitable to a range of people, whether that’s Gen Zs looking for a location with cheap one-bedroom apartments or older generations looking for cheap places with larger, desirable  houses. Here are three of the cheapest places you can live in the UK:


Durham is a city in the Northeast of England, known for its university, Anglican Cathedral and 11th century castle. Durham is a vibrant city that has a solid connection to the past. Great for Gen-Zs who love historical sites, being part of a buzzing community, or wanting plenty of places to eat and drink all at affordable prices..

Cost of living in Durham

Durham is one of the cheapest places to live in the UK. Durham is perfect for Millennials  maybe planning for their long-term future, as it has many good schools with a reasonable cost of living.

A 1 Bedroom, Hall and Kitchen apartment in in County Durham is £650 per month, while outside the city it is £360 per month. Basic utility costs around £235 per month, and the monthly travel pass is available for just £55.

Average house price in Durham

The latest data from the government department revealed that in August 2022 the average property price in County Durham reached £130,413, which isn’t a bad price compared to some other places in the UK.

cheapest places to live in the UK


Lancaster is a city in the Northwest of England and the county town of Lancashire, standing on the river Lune. Lancaster Castle is widely regarded as one of the most fascinating historic buildings in the country, Lancaster Castle is nationally known for its arts scene. There are 600 business and organisations in the region involved directly or indirectly in arts and culture. This makes Lancaster a great option for cultured Gen Z workers looking for an affordable place to live.

Cost of living in Lancaster

With average monthly rent being around £570 in the town and £440 outside of the city, Lancaster is a great place to live for Gen-Z workers focused on keeping their costs down. Local transport inside of Lancaster is also cheap -£80 buys a monthly pass to travel throughout the entire city. Lancaster also offers affordable student housing, as well as local restaurants and markets that are reasonably priced.

Average house price in Lancaster

The average price of properties in Lancaster during 2022 was £194,853 with most sales transactions being for terraced houses. Again, this pricing is reasonable compared to other parts of the UK.

Lancaster - cheapest places to live in the UK


Newcastle upon Tyne is a university city on the River Tyne in northeast England. Newcastle is one of the most iconic cities in Britain. Famous for its industrial heritage, eponymous Newcastle Brown Ale, popular nightlife, and distinct regional ‘Geordie’ dialect. Perfect for Gen-Zs looking for a buzzing but affordable place to live.

Cost of living

In Newcastle a one-bedroom apartment costs an average of £650 in the city and £474 outside it. Primary utility bills will run about £130 per month on average. There are also restaurants, entertainment, and gyms at reasonable prices too.

Average house prices

Last year, the average price of a property in Newcastle Upon Tyne was £202,247. Terraced houses, sold for an average price of £176,840, Semi-detached homes sold for an overall average price of £197,176 and flats went for £122,983 on average.  It’s important to note that while these cities and towns may have a lower cost of living, they may also have less job opportunities or a lower standard of living than other places in the UK. However, for Gen-Zs who may work remotely and are looking for an affordable place to live, these places are worth considering.

Newcastle - cheapest places to live in the UK

Real time pay for Gen Z workers

One reason for relocating is for a more affordable cost of living. Making ends meet on a monthly cycle can be difficult for many workers. They may become reliant on high-interest credit cards or loans. Income Group provides an instant payroll solution, offering on demand pay to employees. This means that employees can get paid sooner and avoid high interest debts or payday loans.

Real time pay can improve the financial wellbeing and security of Gen Z workers throughout the UK.

Learn more about on demand pay here.

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