The happiest places to live in the UK: Where are we the most content?

When it comes to property investment, there are the obvious elements to consider. Costs, rental yields, demographics and more should all be factored into your planning. But one key consideration can often be overlooked – happiness.

It may seem farfetched, or even silly to base major investment decisions on the happiest places to live in the UK. But there is evidence suggesting that doing so could be beneficial.

In 2019, research from Savills showed regions and towns with particularly happy populations commanded substantial house price premiums. Fylde, in Lancashire, took the top spot for happiness at the time. Correspondingly, the median house price premium for Fylde sat 16.1% higher than that of other houses in the region.

Similar results were found in other places that ranked highly for happiness. Including Lichfield (29.2%), East Devon (12.1%), and Blaby (15.1%).

Renters are also highly motivated by happiness. Many are driven to move in an attempt to find higher quality properties, live in better surroundings, or seek out more outdoor space.

Happier tenants may also be more likely to stick around for longer. Our own independent research from late 2022 showed that 69% of tenants wanted more multi-year/long-term lets in the market.

But how can you realistically incorporate happiness into your property investment strategy? Happiness or indeed, any emotion, is highly subjective and hard to quantify.

While we cannot advise you on where to invest, we can try to help narrow down your options. Many surveys and reports have been produced attempting to get an idea of where we’re happiest. A few key locations have popped up.

Source: Savills, CBRE, MFS

Where is the happiest place to live in UK?

Quarterly, the ONS releases data on how people in the UK are doing as individuals, communities, and a wider nation. The latest release provides an overview of how we’re all coping across 10 domains of well-being. Which includes our relationships, health, and lifestyles.

One of the happiest places to live in UK is the North East of England. It had the highest proportion of contentedness in Q1 2023. Over a third (34.34%) were found to have a very high level of happiness (a score of 9 to 10).

This ties in with the North East’s property market’s recent success stories. The region saw the highest house price appreciation between May 2022 and May 2023, according to Sourced Franchise.

Prices here rose by 4%, outpacing all other Northern regions, the Midlands, and Southern England. North Eastern rentals are also generating healthy yields of around 4.7%.

Aside from the North East being one of the happiest places to live in the UK, there are others. You could also consider the East of England (32.68% of the population have very high levels of happiness), the East Midlands (31.43%), or Yorkshire and the Humber (30.36%).

Of course, other organisations have also done their own research on where we seem to be happiest. Fortunately, much of this work is city-specific.

Source: ONS, Property Notify

What about specific towns?

To find the happiest place to live in UK, Rightmove’s “Happy at Home Index” surveyed over 21,000 people across Britain in 2022. They wanted to know how they felt about various aspects of where they live. This ranged from a sense of belonging, through to access to green spaces.

St Ives, the small town in Cornwall, took the top spot, being crowned the happiest place to live in UK. Unsurprising, given St Ives picturesque beaches, cobbled streets, and award-winning restaurants.

St Ives faces an uncertain outlook, however. Property investors poured money into the town in recent years as it became a popular tourist attraction, and flexible working hotspot. This caught the eye of Michael Gove, who vowed to clamp down on second-home owners.

Nevertheless, average house prices in St Ives reached £523,731 in late 2022, according to Rightmove. This was a 6% rise on the year prior, and 43% higher than the national average.

Source: Financial Times, Which?, Rightmove

Broadening our happiness horizons

Europe’s science capital

Others who have explored the happiest place to live in the UK have also broadened the scope. Glassdoor analysed over 100,000 anonymous employer reviews from 20 UK cities. When combining general happiness with career prospects and/or contentedness, Cambridge took the top spot, with a score of 78.2% for job satisfaction.

Cambridge could achieve even higher scores here over the coming years. The government recently announced plans to “supercharge Europe’s science capital”. This may equate to major new developments, some 250,000 new homes, and efforts to attract talent to the ancient town.

The most relaxing place

Meanwhile, separate research investigated where are the most relaxing places to live. This took into account life satisfaction, along with access to health clubs, distance to parks, and more. If it’s relaxation you, or your tenants, are after, Derby is the place to be.

The East Midlands town offers easy access to green spaces, and leisure facilities. Currently, there are 77 gyms and health clubs per 100,000 people – much higher than the national average of 35 per 100,000.

Derby could also offer a bargain for those looking for cost-effective investments. The average house price in Derby, according to Rightmove, is £238,949. Much lower than the national average of £364,895.

Source: Country Living, BBC, The Express, Mortgage Introducer

An investment into the happiest place in the UK?

Investing in the happiest place to live in the UK may be an option. Ultimately though, any property investment you make should be weighed up against several parameters. You need to consider the financial side of things, sentiment in the market, along with all the other emotions that play a part in decision making. People seek out happiness, but they often also feel stressed, melancholic, worried, or confused.

Any property investment strategy you have, regardless of whether it involves emotions or not, will need to be discussed with a qualified professional.

But, when you do have a clear goal in mind, we’ll be there to help you achieve it. Our specialist funding can help you with a range of investments, from refurbishment all the way through to substantial BTL expansions.

We’ll remain flexible to match the unpredictability of human nature. If you want to target the happiest places to live in the UK, we’re here for you.