Well I lived in London. Went to live in Tokyo with my GF and then came back to UK. I nearly wet myself when I saw the price of housing and ended up living in my storage unit for a month. I decided "no more London" and went to find a cheap city to live in. I decided on Liverpool (even though I had no previous history there) for several reasons.

1. It's international
2. It's really really cheap - I live in the very center of the city. The town hall is two minutes walk away, as is the river. The subway is 30 seconds walk and yet I pay 1/4 of what I'd pay in London for something that is 10x better. Also you can get a pint of beer for £1.80 in a bar (yes really).
3. The weather has to be the best in the UK (You are surrounded by water)
4. The beach is 4 stops on the subway
5. There is one center and you can walk across it in 30 mins
6. London is 2 hrs by train. That is the same as doing a commute from outer London.
7. If you go out on the town you can walk home
8. Strangers talk to you (and they usually aren't bananas)
9. Other cities, like Manchester are 30 mins away ie you can go party there on a Friday night and get home ok if you wanted.

Frugal means escaping London for sure.