The town isn't real, but its meant to symbolize the small hometown that everyone wants to escape.
For most of the guys, there was nothing there for them. Andy hated it, likely because he associated it with drunkeness and his accident, Peter was beat up and bullied there for most of his life, Steven and Ollie both had bigger dreams (and Steven likely thought it brought up painful memories about his unrequited love for Ollie's sister). Gary is the only one who has any kind of fond memories for the place, and you realize throughout the course of the movie it is more the nostalgia that he draws his love from, not the actual pubs or the town itself.
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