Lancaster named among best UK cities where you’re most likely to own your home outright, according to new study

A new study by Land of Rugs has revealed the UK cities and towns where residents are most likely to have fully paid off their homes. So, if you’re aiming to ditch the debt and go mortgage-free, these are the places to watch.

The study analysed homeownership tenure data from official sources including the Office for National Statistics (ONS), NISRA (Northern Ireland Statistics and Research Agency), and the Scottish Government. These sources provide breakdowns across multiple housing categories, such as outright ownership, ownership with a mortgage, shared ownership, private renting, and social housing.

Looking at 133 towns and cities across the UK, the study compared the proportion of outright homeowners relative to the total number of homeowners in each location. By isolating the percentage of people who own their homes outright, the results paint a fascinating picture of where mortgage-free living is most common and it’s not always where you’d think.

Lancaster takes the 13th spot in the rankings, with 38.60% of its homeowners enjoying full ownership without the burden of a mortgage. This historic city in the North West, known for its castle, university, and proximity to the Lake District, blends cultural charm with affordability — and the data suggests many residents are reaping the rewards of long-term homeownership. Nearly four in ten locals have fully paid off their homes, putting Lancaster firmly on the map for financial stability.

Meanwhile, Maldon in Essex leads the list, with an impressive 43.81% of residents owning their homes outright, the highest proportion in the country. Hot on its heels is Lewes, East Sussex, where 42.40% of locals live mortgage-free, followed closely by Hereford in third with 42.34%. Lichfield takes fourth place at 41.42%, while the seaside town of Scarborough rounds out the top five with 41.40% of homeowners no longer tied to a mortgage.

Harrogate, the elegant spa town in North Yorkshire, comes sixth with 40.66% of outright owners, followed by High Peak in Derbyshire in seventh place at 40.14%. Folkestone, a fast-developing coastal hub, ranks eighth with 39.24%, while Solihull, on the outskirts of Birmingham, lands in ninth at 39.17%. Finally, Torbay on the English Riviera rounds out the top ten with 39.15% of residents owning their homes outright. These figures highlight a cluster of smaller towns and suburban areas where long-term homeownership and financial stability remain strong.

Not every city is faring as well. Unsurprisingly, major urban centres lag far behind when it comes to outright homeownership. London, for example, sees just 20.15% of homeowners owning their property outright. It’s even lower in Manchester (16.50%) and Greenwich (16.20%).

Westminster finishes bottom of the ranking, with just 16.04% of homeowners having fully paid off their homes, a reminder that in some parts of the UK, owning outright is still a long way off.

Other notable cities include Edinburgh in 58th place, Birmingham at 99th, Oxford at 107th, Bristol just behind at 108th, and Liverpool further down in 114th.

Top ten best UK and Lancaster cities where you’re most likely to own a home outright in the study: