Cost of Living London: Average Cost and Living Expenses

If you reside in a big city, many of your typical monthly expenses (rent, food, and entertainment) would likely increase. The cost of living in the UK can be high when compared to much of the rest of the world, making the biggest price tag of all the cost of living London.

Average cost of living in London per month

In the UK, the average monthly cost of living for a single person is estimated at about £2,200, including rent.These figures don’t account for discretionary costs like the cost of a private dermatologist or the cost of regularly seeing a therapist. A family of four would pay even more, around £3,874 when taking into consideration how much it costs to get married or the cost of raising a child in the UK. Of course, each person’s cost of living is unique depending on their preferences, lifestyle choices, and personal circumstances, but this is still a useful benchmark.

Living expenses in London

London is an expensive city to live in when compared to average cost of living in the rest of the country, even more so following the cost of living crisis. Some of the major monthly expenses in London that make it significantly more expensive than other cities are:

• Rent: £2,193 per month (this is the citywide average for London in 2022)
• Public transportation: a Monthly pass for public transportation is £146
• Taxi: On a work day, a 5-mile taxi ride costs £26.
• Dining out: A London pub dinner for two costs £37.
• Entertainment: £171 for 2 theater tickets
• Nightlife: 1 cocktail costs £13 in a bar.
• Pubs: 500ml or 1 pint of beer costs £5.50.

Although London’s citywide rental average is over twice as high as the national average, this number may be slightly biased. Some neighborhoods boast luxury rental properties in central London, which drives up the city’s average rental prices.

Average bills per month London

In addition to the costs of a night out, when it comes to average bills in London there are also monthly bills that you need to factor into your budget. Between energy to groceries, cable and internet, bills in London per month can really add up.

Energy: After rent, gas and electricity are probably your greatest monthly expenses. Make sure that gas and electricity have not been bundled on a dual tariff if your home uses both. In other words, you get all of your gas and electricity from the same supplier, and you only have to pay one simple bill. It may be worthwhile to switch to a dual fuel tariff if your energy is currently in two different tariffs because it is frequently more affordable and practical (this isn’t as scary as it sounds; there are plenty of guides online to help you!). You can expect to pay around £240 each month on gas and electricity.

TV and internet: Another necessary utility cost associated with housing for students is broadband. And, let’s face it, that one is the one you’ll want to resolve as soon as possible! In the absence of all-inclusive housing, you will be in charge of overseeing and paying your monthly broadband payment. Even if a broadband provider is already set up when you move in, it is possible. Check the monthly internet charges and find out which provider is being used. By switching to a less expensive provider or taking advantage of new sign-up offers, you might be able to save money. Make sure the package you select meets your needs and provides the level of speed you’ll need to meet your university deadlines. Even if you only use your home to watch television on your phone or laptop, all properties in the UK need to have a TV license. The only exception is when watching a show on ITV or Channel 4 after it has aired, which excludes services like ITV Player and All 4. You should budget around £30 a month for these expenses.

Groceries and food: London’s high expense of living extends to food and groceries as well. Depending on your eating habits, the cost of groceries and food will vary. You can save money each week by purchasing your groceries at Sainsbury’s, Lidl, or Tesco instead of more expensive grocery stores. There is more room for variation when it comes to your monthly budget for groceries, though the average amount spent per person on groceries in London is around £200.

Average cost of living renting an apartment in London

The cost of renting an apartment in London will depend on the size of the flat and its location in the city. Young professionals moving to the capital or choosing to go it alone frequently prefer single rooms, one-bedroom apartments, and studio homes.

Low rental rates are frequently advantageous for these kinds of properties because they are likely to appeal to single renters – subject to location, of course. For apartments with one or more bedrooms, Hillingdon, Havering, and Sutton feature some of the lowest average rents in the city. Properties in those areas with adequate transportation links may be a wise investment if you want to attract young professionals.

The highest average rents in London for studio, one-bedroom, and other properties can be found much closer to the city’s center, as one might anticipate. For these properties, Kensington and Chelsea, City of London, and City of Westminster all score highly.

Student accommodation prices in London

The amount of rent you pay as a student in London varies depending on a number of variables, including whether you live on or off campus, whether it’s a private rental or a PBSA (Purpose-Built Student Accommodation), and what utilities and amenities are provided at the property or are included in your bills. Your rent would typically range from £210 to £240 per week if you chose to live in university housing or a residence hall, with some universities charging slightly more than that. The average apartment rent in London for student housing can range from £300 to £500, depending on where you choose to live.

What salary do I need to survive in London?

What constitutes a good salary in London for a single person household? In London, according to Statista, the average annual wage for full-time employees in 2022 was £41,866, but in general, to live comfortably in London, without living paycheck to paycheck, you would need a yearly salary of at least £45,000 to pay living expenses and discretionary costs. Of course, for a family of two renting a flat, it becomes easier to manage the costs of living in the city.

If you’re able to cover all your expenses with income to spare, you can use what’s left over to earn more income. Open a general investment account and build an investment portfolio, with a good investment strategy, you can use your unallocated income to increase your wealth. Learn how to invest effectively with a financial advisor.

Can you live in London on 20k?

It would be very difficult to live alone in London off of 20k net a year, requiring some serious financial planning. A budget of 20k a year translates to around £1,666 per month, of which nearly £1,000 will likely need to be paid in rent. That would only leave around 600 to cover utility bills, transportation costs and groceries. At the end of each month you will likely have very little money left over to save or use to cover unexpected expenses.

FAQs

Is London cheaper than New York?
In general, the cost of living in proportion to the average salary is only marginally lower (1.31% according to Numbeo.com) in London than New York.

What is middle class salary UK?
In London, the average wage for women is £38.3k. In 2022, the median wage for women in the UK was £29.7k. In London, the median income for men is £45.1k. In 2022, the male median pay in the UK was £35.3k.

What is a good salary for a single person in London?
In London, a net monthly wage of between £2,800 and £3,000 is regarded as a respectable wage. This is equivalent to a gross annual salary of more than £45,000. Everyone who makes between £3,300 and £4,000 gross each month is considered to be well-off.