What is the annual average cost of living in London?

When estimating the annual average living cost in London, we have covered almost all the cost centers that would incur to a person. They are the Cost of groceries, Cost of Monthly Utilities and the Cost of Transport which is a mandatory need rather than a want, thus unavoidable.

Then comes the Cost of Entertainment, on which a majority of the money is spent by everyone in Europe, especially when in the colorful, premium, and lively capital- London. Although adapting to the typical lifestyle at the Pubs, Bar, and outdoor activities might be something different from those in the developing countries, once we go with the flow, it would all be worth it.

There is another set of costs which forms part of the expenditure, when moving to London as a family, with kids and others.

Cost of childcare will need to be considered, as they regard and consider the best safety of children, right from when they are toddlers, thus there are high-quality facilities and infrastructure, which when used will incur a cost.

Also, if one is a fitness freak and a lot aware of maintaining health and goodness, or in love with sports, there are highly advanced centers, which can be easily accessible on obtaining memberships, which thus would add to the cost.

Also, if you have to ship items to your home country or even to neighboring countries, the costs are reasonable, but also dependent on the duty charges which often vary from time to time.

Thus inclusive of all the major costs mentioned above, one single person living in London spends almost 800 pounds more than the UK average per month, which results in a higher annual cost of £33,480.

A family with four members will have monthly expenses of around £56,940 per annum making it one-of-a kind and one of the most expensive cities in the World.

Things to Consider Before You Move to London

London, being one of the lively cities in Europe has been a major attraction for tourists as well as students. For years, London has never failed to welcome and impress the guests with the unique vibe that the city offers, with the love of art and the rich European culture.

Thus, one must do detailed research of the culture, food, cost of living and also on how to make the best out there, because we live only once!

One best part of the city remains to be the language, English is accepted and well known to the citizens, which indeed makes it easier for the ex-pats from across the globe. Thus a good and reasonable command of English can even change your life once you move to London- the dream city.

So, if you are moving to the UK’s capital to achieve your dreams, communication is the key to that one step. Every other stage would be indeed an adventure that is quite natural among ex-pats.

How Much Does Rent Cost in London?

This is one of the primary factors to be considered while moving to any country abroad, especially London, which is as huge and premium as it is. Finding a place to live in London, for whatever purpose, would not be a hard task, but the one that fits into your budget would decide.

The decision on whether to buy a convenient space or to rent one also has to be made, based on the budget in hand. Based on the most recent estimates, 967,989 GBP turns out to be an average cost to purchase a 3 bedroom house or apartment.

Renting a two-bedroom space would cost around 2400 GBP. Thus rent costs would indeed consume a lot of your income or cash, until and unless you have a stable income.

Which Zone Can I afford to live in London?

So, one can save money on conducting proper research based on the locality to be selected. As in every other city, it is the best and most busy location which are expensive to stay in, while there are reasonable options as well, but finding such a one is what matters.

Here comes to help the most popular sites like Spareroom, Ideal Flat & Spotahome. These would turn out to be the best and cost-saving technique if you are moving to London alone, as as a single person, as a student or for a job, and not moving in together as a family.

To be more specific, areas such as South London have reasonable and lower rental costs when compared to the rest of London, which costs only 1,456 GBP per month. While there are opposite extremes in the Chelsea region, which has the starting costs from 2,244 GBP per month.

Another major unavoidable cost, which almost remains the same, but is also mandatory is the Renter’s Insurance fee, every month, whose costs range between 6 GBP and 15GBP.

Cost of living in London for students

London has become an educational and career hub among students from across the globe. The existence of best and high standard universities, along with the increased scope for student jobs and career opportunities, London and the UK still remains to be a dream work-study destination.

Thus while considering the cost of living of students the below are to be considered:

– Monthly rent costs

– Fee and Scholarship

Students get to choose and stay with their own independence, even rent a whole room or apartment based on one’s own convenience and budget.

Student scholarship is the one which comes to help, when considering the huge fee, which would have otherwise have to be paid, thus leading to only financial burden.

Based on the recent estimates, students at London, will have to set aside at least £1,250 on a monthly basis exclusively for living expenses alone, London being the center of attraction for entertainment, fun and party, which occupy a reasonable amount in the life of a student abroad.

Cost of Living in London in 2022

The cost of living in different parts of London is detailed below, which would thus act as a brief that could help you figure out a perfect stay!

Cost of living in West London

The average cost of rent for living in the West London region would be ****£280 – £430 (single), £459 – £690 (double), in case of flat sharing.

Cost of living North West London

Being in the list of most active centers in the entire city, the Cost of Living in North West London is expensive when compared to the rest, also highly variable, thus putting forward a good estimate does not deem fit.

Cost of living in North London

The cost of living in North London, would lie anywhere in between £300 -£400 in case of a single bedroom requirement and would cost around £430 – £550 if it’s a double bedroom requirement.

Cost of living in North East London

The range of cost, while living at this location would be reasonable and not so expensive, when compared to the rest, and is thus recommended if one can find a good spot.

Cost of living in East London

While living in the East London region, £290 – £390 (single), £430 – £600 (double) in case of sharing a flat. While a single bedroom flat per month rental would cost between £650 – £750.

Cost of living in South East London

The cost of living in this South East London region would be almost average and lie between the costs incurred the East and South London, as it comprises the regions from both ends. Better research and network connections can help you find the perfect space at a perfect price.

Cost of living in South London

When including the cost of rent, as a major expense when considering the Cost of Living in South London, it would amount from £450 – £600 for a single bedroom and £450 – £800 in case of a double bedroom requirement. The other costs would be more or less similar when compared to the whole of London.

• Cost of living South West London

The average cost of rent for living in the North West London region would be

£280 – £500 when looking out for a single bedroom flat. In the case of a double bedroom, the cost of rent which would indeed add to the cost of living would be somewhere between £350 – £650, although the estimates are subject to changes in the due course of time and demand, based on arising trends.

Cost of Groceries in London

As previously mentioned, the cost of Groceries is a mandatory expense when it comes to estimating the cost of living. These are indeed the major indicators of the high cost of living in London in general. Also, these cannot be estimated accurately, as an individual’s cost on groceries would be dependent upon the consumption habit and lifestyle.

Dining out at London city, although might seem like a wonderful experience, would on the other hand end up adding to the costs, like in any other major city. The cost of basic necessities which form a part of daily food are:

Milk – £0.96 (per litre)

Eggs – £2.06 (per dozen)

Rice – £1.28 (per kg)

Banana – £1.14 (per kg)

Apples – £1.88 (per kg)

Cost of Transport in London

Transportation charges too, as previously mentioned, would be dependent upon the mode an individual uses. There are high-end and premium modes, while there are cheaper and eco-friendly modes as well, thus it is highly subjective.

The most popular way to get around London is using public transport, which can be paid for using an Oyster Card or contactless payment. Having a travel card allows you to use multiple modes of public transport, including bus, tube and national rail.

You can either pay for each journey separately with contactless payment, or get a weekly or monthly travel card. This can help with budgeting, as you can top up your oyster card on payday and not have to worry about travel until your next pay period.

Monthly Travelcards 2022

Zones 1–2 : £147.50

Zones 1–3: £173.60

Zones 1–4: £212.00

Zones 1–5: £252.30

Zones 1–6: £270.00

Zones 1–7: £293.80

Zones 1–8: £346.80

Zones 1–9: £384.80

Owning a Vehicle

Owning a car in London can be expensive when you factor in road tax, congestion charges, car insurance, parking permits, and MOTs (Ministry of Transport).

Road tax for a small two-door hatchback can cost around £150 per year, while insurance and an MOT can add an additional £410 to your annual expenses. If you’re looking to save money, public transport may be a better option for getting around London.

If you only need a vehicle every so often, there are numerous car rental firms in London. You might consider hiring Zipcar or another similar service that offers hourly or daily rates. This may be a cheaper option depending on your usage.

Talking about using one’s car, Congestion Charge comes into play, which is thus an addition to the cost.

Black cabs

Being one among the most popular service in London, would cost around £10-35, which would also vary based on busy hours and availability.

Cycling in London

Yes, these are also an excellent option, especially if you are a person who cares about eco-friendliness and health. There are facilitators like the Santander Cycles, who offer the service to the public in London, these are thus a cost-effective option too, which can indeed reduce the cost of living at Central London. Because they also have yearly membership which would cost only £90, and free access for the whole year.

The Total Cost of Living in London per Month

Monthly Rent

Talking about the rent in detail, it would be better when comparing the costs of rent for a single room for an individual living in London, also for a home with two to three bedrooms, which would be more than enough for a family living in London.

An approximate rounded sum for rent, which forms as a part of the cost of living in London are:

Individual ( 1 bedroom ) – £2760

Family ( 3 bedrooms) – £5500

Utilities

The category of bills would include the major utilities which would form part of a household, living in London, such as Gas, Electricity, Water, Internet, TV license and Council Tax.

Council Tax

The first expense to consider is council tax. This is a tax that is levied by the local government on residents of London. The amount you will pay will depend on the value of your home and where it is located within London.

For example, homes in Zone A (which covers Central London) will pay more than homes in Zone G (which covers the outer boroughs).

The average monthly council tax bill in London for 2021 is £107.50.

Electricity and Gas

Next, let’s look at the cost of electricity and gas. These costs will vary depending on how much energy you use and the type of supplier you have.

For example, if you switch to a green energy supplier, you can expect to pay a bit more for your electricity.

The average monthly cost of electricity and gas in London is £70.

Water

Water is supplied by Thames Water in London. You cannot shop around for a different supplier, so the price you pay will be the same no matter where you live.

The cost of water in London is based on a fixed rate, plus a charge for the amount of water you use. The average monthly cost of water in London is £33.46.

Internet

Broadband is a fixed price in the monthly bills so it’s easy to budget for. Simply choose the speed that you need for your household and a provider that is offered in your area. As there is competition in this space you will be able to bargain for the best price.

You can also get combination packages like tv and broadband, mobile and broadband or all three combined.

The average monthly cost of broadband in London is £49.

TV License (optional)

TV license is required if you plan on watching free view TV or apps like the BBC iplayer. You can check if you need one on their website.

The cost of a TV license in London is £157.50 per year.

Total Monthly Cost of Utilities in London

The total monthly cost of utilities in London is £327. This includes council tax, electricity, gas, water, broadband and TV license.

As you can see, the cost of living in London is relatively high when compared to other major cities around the world. However, there are ways to save money on your monthly expenses, such as by switching to a green energy supplier or bundling your internet and TV service.

Do you have any tips for saving money on living expenses in London? Share them in the comments below!

Individual Monthly Costs

Groceries

Groceries, as mentioned previously, the costs per kg and in liters are provided in detail. The rate itself signifies how the cost of groceries is an indicator of how expensive grocery shopping would be, in the huge Capital City- London, which adds to the living costs.

Mobile phone

The cost of a mobile phone in London will vary depending on the type of contract you have. If you purchase your phone outright, you can get a sim only contract which is more data-driven. For £10 per month, you can get 5,000 minutes and 10GB of data.

The most popular smartphones in 2018 cost an average of £39.60 per month, but this grew to £47.20 on average per month in 2021. The Apple iPhone 12 Pro Max (100GB data) is the most popular contract for 2021, costing customers £55 per month with a £49 initial payment.

Entertainment

Entertainment costs too would vary from person to person. But for a person who loves the fun life in London, the Cafes, the Pubs, and Bars will have to keep aside a good amount. But on the other hand, if one would love to spend evenings and weekends at a beautiful park or by the river, it can be done budget-friendly.

What is the average salary required to live comfortably in London?

This is a question that many people ask, as the cost of living in London is known to be high. A recent survey by TimeOut found that Londoners themselves believe you need to earn around £53,000 to live comfortably in the capital.

However, it is important to note that this figure will vary depending on individual circumstances. Your lifestyle choices, such as your spending habits and whether you have any dependents, will all affect how much you need to earn to live comfortably in London.

Official statistics from early 2022 show that the median annual salary for full-time workers in the UK was £31,285. This means that, although the cost of living in London is higher than in other cities, it is still possible to live comfortably on a lower salary.

The same report found that the median annual salary for workers in London was £39,716. Therefore, it is possible to live on a salary of less than £40,000 per year and still have a comfortable lifestyle in London.

What is the average price of a house in London?

If you’re looking to buy a house in London, you’ll need to have a pretty hefty budget. According to Zoopla, the average price for a property in London is just over £700,000. Even though prices did drop during the early stages of the pandemic, they have since begun to rise again.

So, if you’re not already a homeowner in London, it may be tough to get your foot on the property ladder. House prices have been steadily increasing for decades, making much of the city unaffordable for first-time buyers.