This might be because I'm a postgraduate, but I'm from Yorkshire and I feel like I've hardly met anyone from the south... I have at least felt that there are considerably more northerners than when I did undergraduate (in Oxford to be fair). I guess people don't necessarily travel as far for postgraduate but I'm sure you'll find your people.
The accommodation isn't cheap but in terms of self catered I'm not sure I've seen much cheaper. The benefit will be that if you have to, or choose to, live out at any point, house prices in the north east are about as cheap as they get