These are the best UK cities to live in, based on cost of living

The cost of living is difficult to keep track of - taxes are inflating, everyday food item prices are soaring and house prices are in flux.

While this may be true of all cities across the United Kingdom, some are definitely better to live in on the basis of cost of living than others.

Budget Direct launched an extensive survey in 2022 to identify which cities were best to live in based on the average cost of living across different cities in England, Wales, Scotland and Northern Ireland.

The study looked at basic costs, including transport, utilities and rent, and measured them against the average salaries in the areas to determine an average cost of living.

Oxford was identified as the best major city to live in the United Kingdom, closely followed by Glasgow and Reading. This was reportedly due to a combination of good salary prospects and low living costs.

Also featured in the top 10 were Bristol, Derby, Coventry, Southampton, Birmingham, Edinburgh and Manchester.

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Best UK cities for cost of living

1. Oxford England

Average salary monthly (after tax): 3,566.67 Rent (1 bed inner-city): £1,300.00 Utilities (electric, heat, water for 85m2 apartment): £143.51 Monthly pass transport: £60.00 Cost of living (basic costs added): £1,503.51 Cost of living (-) salary: £2,063.16

2. Glasgow, Scotland

Average salary monthly (after tax): £2,805.67 Rent (1 bed inner-city): £776.92 Utilities (electric, heat, water for 85m2 apartment): £141.90 Monthly pass transport: £65.00 Cost of living (basic costs added): £983.82 Cost of living (-) salary: £1,821.85

3. Reading, England

Average salary monthly (after tax): £3,010.76 Rent (1 bed inner-city): £996.51 Utilities (electric, heat, water for 85m2 apartment): £172.72 Monthly pass transport: £60.00 Cost of living (basic costs added): £1,229.23 Cost of living (-) salary: £1,781.53

4. Bristol, England

Average salary monthly (after tax): £2,874.21 Rent (1 bed inner-city): £998.33 Utilities (electric, heat, water for 85m2 apartment): £174.53 Monthly pass transport: £73.91 Cost of living (basic costs added): £1,246.77 Cost of living (-) salary: £1,627.44

5. Coventry, England

Average salary monthly (after tax): £2,250.00 Rent (1 bed inner-city): £550.00 Utilities (electric, heat, water for 85m2 apartment): £180.04 Monthly pass transport: £50.90 Cost of living (basic costs added): £780.94 Cost of living (-) salary: £1,469.06

6. Derby, England

Average salary monthly (after tax): £2,225.00 Rent (1 bed inner-city): £500.00 Utilities (electric, heat, water for 85m2 apartment): £209.95 Monthly pass transport: £56.00 Cost of living (basic costs added): £765.95 Cost of living (-) salary: £1,459.05

7. Southampton, England

Average salary monthly (after tax): £2,350.00 Rent (1 bed inner-city): £729.00 Utilities (electric, heat, water for 85m2 apartment): £137.16 Monthly pass transport: £55.00 Cost of living (basic costs added): £921.16 Cost of living (-) salary: £1,428.84

8. Birmingham, England

Average salary monthly (after tax): £2,285.83 Rent (1 bed inner-city): £709.46 Utilities (electric, heat, water for 85m2 apartment): £159.41 Monthly pass transport: £65.00 Cost of living (basic costs added): £933.87 Cost of living (-) salary: £1,351.96

9. Edinburgh, Scotland

Average salary monthly (after tax): £2,312.50 Rent (1 bed inner-city): £869.58 Utilities (electric, heat, water for 85m2 apartment): £146.84 Monthly pass transport: £60.00 Cost of living (basic costs added): £1,076.42 Cost of Living (-) salary: £1,236.08

10. Manchester, England

Average salary monthly (after tax): £2,324.11 Rent (1 bed inner-city): £916.36 Utilities (electric, heat, water for 85m2 apartment):£162.30 Monthly pass transport: £71.74 Cost of living (basic costs added): £1,150.40 Cost of Living (-) salary: £1,173.71

Anyone else considering a relocation?

Visit Budget Direct for more information on the cost of living survey. 

Jenny Proudfoot
Contributing Features Editor

Jenny Proudfoot is an award-winning journalist, specialising in lifestyle, culture, entertainment, international development and politics. After working at Marie Claire UK for seven years - rising from intern to Features Editor - she is now a freelance contributor to the News and Features section.

In 2021, Jenny was named as a winner on the PPA's '30 under 30' list, and was also listed as a rising star in journalism.