Aberdeen has the lowest property prices in the UK, whilst Middlesborough has the lowest rental prices, research from takepayments reveals.
Brighton (main picture) and Bristol were found to be the most expensive cities, outside of London, and ranked amongst the costliest locations for factors including rent prices and house prices – as well as average yearly electricity bill and the cost of a monthly bus pass.
All three of the most affordable cities in the study are in the North East (Middlesbrough, Sunderland and Newcastle) and the research only reaffirms the clear North South divide in the UK when it comes to wealth distribution.
The research highlights that property and rent prices, in particular, are currently driving unaffordability in our cities.
HIGHEST PROPERTY PRICES
London (£51,6710), Brighton (£420,181) and Bristol (£347,689) rank 1st, 2nd, and 3rd for the highest property prices, mirroring their rankings as the most expensive cities in the study.
The cheapest property prices were found in Aberdeen (£134,368) – with the Scottish city ranking 5th for affordability overall.
Manchester and Leeds were the only northern cities to appear in the top ten most unaffordable cities in the study. Manchester ranked 7th out of 34 for rent prices (£1231.8 pcm on average) whilst Leeds came in at 12th (£1093.2 pcm).
Leeds ranked 7th for property prices (£283,822) – with only South Eastern cities and Edinburgh boasting higher prices. Manchester ranked 12th for property prices (£245,015).
On the other end of the scale, Northern Irish cities ranked high for affordability – especially for rent and buying costs. Belfast had the 5th cheapest property prices (£171,276) and Derry the 4th cheapest (£164,483). Derry also had the 4th cheapest rental prices (£704 pcm).
SHIFTING AFFORDABILITY
Jodie Wilkinson, Head of Strategic Partnerships at takepayments, says: “The UK’s affordability landscape is shifting, and our study highlights some key trends that could have long-term implications for both businesses and consumers.
“While London remains the least affordable city, what’s striking is how other cities – particularly in the North – are catching up when it comes to high living costs.
“The idea that northern cities are universally ‘cheap’ is being challenged and as industries move away from London, cities like Manchester and Leeds have seen rapid development, pushing up property and rental prices.”
BUSINESS HUBS
And she adds: “With continued investment in business hubs outside of London, we may see even more locations become less affordable over time.
“While affordability is high in Middlesbrough, Sunderland, and Newcastle, these cities also rank among the lowest for disposable income and wages.
“According to ONS’ regional labour market data from the last quarter of 2024, the North East has an employment rate of 70.3%, which is below the national average of 75.0% and looking ahead, job creation is expected to favour London and Southern England.
“Between now and 2027, employment in the UK is set to grow by 1.1% annually, but London (1.5%), the South East (1.3%), the South West (1.2%), and the East of England (1.2%) are the only regions expected to exceed this. All other areas are estimated to increase slower than the UK’s average, including the North East which has a predicted employment growth rate of 0.9%. For jobseekers and businesses alike, this highlights the trade-off between cost of living and access to employment.”
Check where your area ranks for overall affordability HERE.
