New study unveils most affordable places to live in the UK

The UK's most affordable cities have been unveiled, according to new research.

Research published by HomeLet, a landlord insurance company, found that Plymouth, Leeds and Cardiff topped the list for being some of the least expensive places in Britain.

The analysis found that private rented sector tenants (PRS) in Plymouth have to spend barely over a quarter – just 27 per cent – of their income towards their housing costs. This means they can use the majority of their salary on leisure pursuits. 

Cardiff was ranked as the second most affordable place to live, with residents typically spending 29 per cent of their earnings on rent.

In Leeds, people spent 34 per cent of their wages on renting.

Commenting on the findings, Martin Totty, the chief executive of Barbon Insurance Group, part of HomeLet, said: “Our analysis of the affordability of renting in the UK's major cities has produced some surprising results.

“In some parts of the UK, such as Scotland and East Anglia, where rental prices are now falling or stagnant, the data tells us that renting in some cities in these regions is still stretching tenant affordability.”

On the other hand, other areas of the UK, such as London, proved to be a little more expensive, according to the study.

It found that those living in the capital have to spend 49 per cent of their entire incomes on rent. 

However, this does not take the full picture into account. Firstly, due to the higher cost of living in the city, the average wage tends to be higher.

Figures published by the Bank of England show that the typical salary in London is £42,321 per year, compared to £30,242 in Wales and £30,870 in the south-west.

Separate findings by HomeLet also showed that rental prices have recently dropped across London.

In Greater London for example, there was a 3.8 per cent drop in the price of advertised rent between September and October 2014.

Therefore, although London is not necessarily the most affordable place to live in the UK, the rent levels across the capital have remained fairly stable over the last month or so.

Published 26th November, 2014

© 2014 Estates IT Limited