Edinburgh named among UK’s top cities for disposable income, new study finds
Edinburgh has been ranked as the third-best city in the UK for disposable income among couples who own a home, according to new research by specialist mortgage lender Pepper Money.
The study, which analysed average salaries, essential outgoings, and cost of living across major UK cities, found that homeowning couples in Edinburgh are left with an average of £1,179.25 in disposable income each month—after covering mortgages, bills, and other essentials.
This puts Edinburgh just behind Newcastle (£1,471.27) and Coventry (£1,331.11), and well ahead of major cities such as Glasgow, Manchester, and London.
Top UK Cities for Disposable Income (Couples Who Own a Home):
| City | Average monthly salary | Total bills | The average disposable income available |
| Newcastle | £2,775.69 | £1,304 | £1,471.27 |
| Coventry | £2,671.22 | £1,340 | £1,331.11 |
| Edinburgh | £2,760.42 | £1,581 | £1,179.25 |
| Glasgow | £2,439.84 | £1,300 | £1,140.18 |
| Belfast | £2,120.69 | £1,100 | £1,020.95 |
| Nottingham | £2,257.82 | £1,241 | £1,016.72 |
| Liverpool | £2,226.75 | £1,248 | £978.80 |
| Sheffield | £2,352.12 | £1,381 | £971.33 |
| Leeds | £2,334.59 | £1,400 | £934.48 |
| Manchester | £2,304.13 | £1,418 | £886.51 |
| Birmingham | £2,248.71 | £1,378 | £870.62 |
| Bristol | £2,544.44 | £1,739 | £805.84 |
| Cardiff | £2,176.08 | £1,475 | £700.66 |
| Leicester | £1,913.12 | £1,349 | £563.96 |
| London | £3,026.21 | £2,585 | £441.58 |
Despite the rising cost of living, Edinburgh’s strong income levels and relative affordability for homeowners give it one of the highest levels of financial breathing room in the UK.
Renters and Single Homeowners Face a Tougher Landscape
The report also highlights a growing disparity between homeowners and renters. While couples in Edinburgh enjoy one of the UK’s highest disposable incomes, renters in cities such as Bristol and Leicester face far greater financial pressure.
Meanwhile, single homeowners in high-cost areas like London, Bristol, and Cardiff are now running at a monthly deficit, with essential bills outstripping income.
Credit Card Debt on the Rise—and How Homeowners Can Free Up Cash
The findings come at a time of mounting financial pressure, with average UK credit card debt now at £2,572. For many households, that means relying on credit for everyday costs. At a repayment rate of £100 per month, it would take over two years to clear this balance—assuming no new debt is added.
With disposable income stretched thin, Pepper Money highlights how second charge mortgages (also known as a homeowner loan) can help households consolidating high-interest debt, and reduce monthly repayments, without giving up their existing mortgage deal. This can create extra breathing room to:
- Pay off high-interest debt
- Cover rising childcare or utility costs
- Save for emergencies
However, Pepper Money encourages all homeowners to seek professional financial advice, as secured loans can increase the total amount repaid over time.
Methodology
Pepper Money analysed average salaries, essential monthly outgoings—including mortgage or rent payments, council tax, utility bills, groceries, and car finance—across major UK cities. Disposable income was calculated as the amount left after these expenses, based on publicly available data sources as of July.