London is one of those royal cities to live with the cost of living as high as New York. The city is a cultural center of the world and the most influential for music, art, literature, fashion, and economics. It is also one of the favorite places for professionals who want a job in London as the average pay is higher compared to other cities. On the other end of the spectrum, it is one of the most expensive cities in the world and living in a budget is going to be challenging.
The cost of living index of London is 81.91 and is ranked 27th for its cost of living. The average monthly salary per month after tax is nearly £2,200 or $2,817. The average monthly cost of living for a single person in London is nearly £810 or $1037. For a four-person family, the average monthly expense in London is nearly £2,850 or $3649, which is higher than the average monthly salary in the city.
Average Cost of Food in Restaurants
- 1 People, Normal Restaurant – £15 or $19
- 2 People, Mid-range Restaurant, Three-course – £50 or $64
- McDonald’s McMeal – £6.00 or $7.50
- Domestic Beer – £5.00 or $6.50
- Imported Beer – £5.00 or $6.50
- Cappuccino – £3.00 or $4.00
- Coke, 0.33 liter bottle – £1.40 or $1.80
- Water, 0.33-liter bottle – £1.00 or $1.28
Average Markets Cost in London
- 1L Milk – £1.00 or $1.28
- 500g of White Bread – £2.00 or $2.50
- 1kg rice – £1.60 or $2.00
- 12 Eggs – £2.10 or $2.70
- Cheese (1kg) – £7.90 or $10.10
- Chicken Breasts (1kg) – £6.60 or $8.50
- Apples (1kg) – £2.30 or $3.00
- Banana (1kg) – £1.20 or $1.50
- Oranges (1kg) – £2.10 or $2.70
- Tomato (1kg) – £2.30 or $3.00
- Potato (1kg) – £1.20 or $1.50
- Onion (1kg) – £1.20 or $1.50
- 1 head Lettuce – £1.00 or $1.28
- Bottle of Wine – £8.00 or $10.26
Average Transportation Cost in London
- One-way Ticket for local transport – £2.50 or $3.20
- Monthly Pass – £142 or $182
- Taxi – £3 or $4 per kilometer
- Taxi 1-hour Waiting – £40 or $51
- 1L Gasoline – £1.30 or $1.67
- Volkswagen Golf – £19,225 or $24,652
- Toyota Corolla – £20,916 or $26,821
Average Utilities Cost in London
- Electricity, Heating, Cooling, Water, etc. for 85m2 Apartment – £158 or $202.5 per month
- 1 min mobile tariff – £0.13 or $0.17 per month
- Internet for Unlimited Data – £32.40 or $41.50 per month
Average Entertainment Cost in London
- Fitness Club for 1 Adult – £45 or $57.70
- Tennis Court Rent – £11 or $14 for one hour
- Movie – £12 or $15.30
Average Childcare Cost in London
- Kindergarten, private – £1,256 or $1,610.60 for 1 month
- International Primary School – £16,772 or $21,507 for 1 year
Average Housing Cost in London
- 1 Bedroom Apartment in City Centre – £1,740 or $2,231 per month
- 1 Bedroom Apartment Outside of Centre – £1,235 or $1,583 per month
- 3 Bedrooms Apartment in City Centre – £3,237 or $4,150 per month
- 3 Bedrooms Apartment Outside of Centre – £2,000 or $2,564 per month
- 85 m2 furnished accommodation in City Centre – £2,475 or $3,173 per month
- 85 m2 furnished accommodation in Outside of Centre – £1,790 or $2,295 per month
- 45 m2 furnished studio in City Centre – £1,761 or $2,258 per month
- 45 m2 furnished studio in Outside of Centre – £1,299 or $1,665 per month
- Price per m2 to Buy Apartment in City Centre – £13,582 or $17,416
- Price per m2 to Buy Apartment Outside of Centre – £7,057 or $9,049
- Cleaning – £12 or $15.30 per hour
Average Personal Care Cost in London
- Medicine such as Tylenol, Frenadol, Coldrex, etc. for a week – £3.5 or $4.5
- 12 doses of antibiotics – £8.00 or $10.25
- Private Doctor for 15 minutes – £85 or $109
- 50ml Deodorant – £1.5 or $2.00
- 400ml Hair shampoo – £3.8 or $4.80
- 4 rolls of toilet paper – £2 or $2.5
- Toothpaste – £2 or $2.5
- Haircut in expat area – £16 or $20.50
Purchasing a House
- Average Monthly Net Salary – £2,200 or $2,817
- Mortgage Interest Rate – 3.25% per year for 20 years
Average Property Cost in London
Property Space is relatively expensive in London with only 6% cheaper than in New York.
01. East London
- The flat cost in East London is £446,400 or $572,428.5
- Terraced property cost is £502,165 or $643,937
- Semi-detached property cost is £561,350 or $719,831
- House cost in Tower Hamlets is £555,340 or $712,124
- House cost in Newham is £432,760 or $554,937
- A House cost in Barking and Dagenham is £310,260 or $397,853
- House cost in Havering is £392,285 or $503,035
02. South London
- The flat cost in South London is £455,815 or $584,501
- Terraced property cost is £583,620 or $748,388
- Semi-detached property cost is £609,280 or $781,293
- House cost in Sutton is £390,400 or $500,618
- A house cost in Croydon is £371,455 or $476,324
- House cost in Lambeth is £587,215 or $752,998
03. South East London
- The flat cost in South East London is £483,445 or $619,932
- Terraced property cost is £593,125 or $760,577
- Semi-detached property cost is £704,070 or $902,844
- House cost in Bromley is £500,335 or $641,590
- A house cost in Southwark is £675,955 or $866,791
- House cost in Lewisham is £469,565 or $602,133
- A house cost in Greenwich is £469,910 or $602,575
- House cost in Bexley is £368,220 or $472,176
04. South West London
- The flat cost in South West London is £558,910 or $716,702
- Terraced property cost is £891,825 or $1,143,606
- Semi-detached property cost is £1,251,650 or $1,605,018
- House cost in Merton is £671,090 or $860,553
- A house cost in Richmond Upon Thames is £806,355 or $1,034,006
- House cost in Kingston Upon Thames is £570,640 or $731,744
- A house cost in Wandsworth is £774,960 or $993,748
05. West London
- Flat cost in West London is £922,040 or $1,182,352
- Terraced property cost is £1,839,225 or $2,358,478
- Semi-detached property cost is £1,458,575 or $1,870,362
- House cost in Hounslow is £511,070 or $655,356
- A house cost in Hillingdon is £449,670 or $576,621
- House cost in Ealing is £565,830 or $725,576
- A house cost in Kensington And Chelsea is £2,254,500 or $2,890,994
- House cost in Hammersmith And Fulham is £967,040 or $1,240,056
06. North London
- The flat cost in North London is £552,600 or $708,611
- Terraced property cost is £861,140 or $1,104,258
- Semi-detached property cost is £983,050 or $1,260,586
- House cost in Barnet is £665,815 or $853,789
- A house cost in Islington is £732,830 or $939,724
- House cost in Haringey is £641,255 or $822,295
- A house cost in Enfield is £466,730 or $598,498
07. North East London
- The flat cost in North East London is £422,220 or $541,421
- Terraced property cost is £579,120 or $742,618
- Semi-detached property cost is £628,745 or $806,253
- House cost in Hackney is £627,830 or $805,080
- A house cost in Waltham Forest is £470,535 or $603,377
- House cost in Redbridge is £423,670 or $543,281
08. North West London
- Flat cost in North West London is £593,935 or $761,615
- Terraced property cost is £861,700 or $1,104,976
- Semi-detached property cost is £919,225 or $1,178,742
- House cost in Harrow is £521,655 or $668,929
- A house cost in Brent is £513,050 or $657,895
- House cost in Camden is £1,119,155 or $1,435,117
09. Central London
- Fat cost in North West London is £1,545,360 or $1,981,649
- Terraced property cost is £3,322,850 or $4,260,963
- Semi-detached property cost is £3,000,000 or $3,846,966
- House cost in Westminster is £1,690,480 or $2,167,739
- A house cost in City of London is £1,210,740 or $1,552,558
Owning or Driving a Car in London
Owning a car in London is common with an average price of owning one is £13,000 or $16670 and each family owns at least one car (1.6 according to the survey). People in London spend avg. £450 or $577 per year on car insurance and nearly £180 or $230 on car hire per year.
Here’s an average lifetime cost of owning a car
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- Petrol – approx. £69,400 or $88,993
- Parking – approx. £9,400 or $12,053
- Insurance – approx. £28,100 or $36,033
- Tax & Tolls – approx. £7,500 or $9,617
- Servicing – approx. £28,445 or $36,475
- Supplies – approx. £1,900 or $2,436
- Rentals – approx. £11,600 or $14,874
- Speeding tickets – approx. £1,600 or $2,051
- Total – approx. £168,900 or $216584
Average Cost of Living in London for Students
Students moving to London will face some challenges in spite of the fact that rent will more likely be cheaper for them. Students may have to deposit at least six weeks of rent, and the housing cost can range between £600 to £700 or $800 to $900 per month. If you can live modestly, you can manage a year of expense within £18,700 or $24,000 and even under £14,000 or $18,000 if you can live frugally. If you want to join American clubs, you should go to Shoreditch, where you can make other American students as a friend.
Average Cost of Living in London for Professionals
Working professionals will have to expend a slew of other costs that students don’t have to such as insurance and education for their kids. Being the most expensive city in the U.K., the cost of education is high. In average, the total cost of bringing up a child to adulthood can be £312,000 or $400,000 with nearly £101,380 or $130,000 on education alone.
The average salary in London is nearly £39,000 or $50,000, and half of the salary goes into housing, groceries, transportation, and others. Tran passes in the peak time will cost nearly £7,000 or $9,000 per year for commuters.
Cost of Taxes in London
Well, when it comes to taxes, it has a moderate rate and other taxes than other cities and counties.
01. Capital Gains Tax Rates
If you made a profit of more than £6,000 or $7,700 on your personal assets such as property, jewelry, painting, sculpture or anything for that matter, you will incur a tax of 28% on profit from residential property and 20% on profit from personal assets.
02. Income Tax Rates
- There is no tax on a personal allowance of £11,850 or $15,195 per year
- The basic tax rate is 20% if income is between £11,851 or $15,200 to £46,350 or $59,435 per year
- The tax rate is 40% if your income is between £46,351 or $59,437 to £150,000 or $192,348 per year
- 45% a tax if your income is more than £150,000 or $192,348 per year
03. Inheritance Tax
If you have inherited a property in London with a value more than £325,000 or $416,754, you will have to pay 40% of the value in tax, unless you give it to a civil partner, spouse, charity or other communities.
04. Stamp Duty
- If the property price is below £125,000 or $160,290, the stamp duty rate is 0%
- For property price between £125,001 or $160,291 to £250,000 or $320,580 the stamp duty rate is 2%
- Property price between £250,001 or $320,581 to £925,000 or $1,186,147 will incur a stamp duty rate of 5%
- For property price between £925,001 or $1,186,148 to £1,500,000 or $1,923,483 the stamp duty rate is 10%
- If property price is above £1,500,001 or $1,923,484 the stamp duty rate is 12%
05. Council Tax
This is a minimal tax that you will have to pay which goes into trash collection, street maintenance, and police forces. The usual average is nearly £25 or $32 per week; however, the price varies depending on where you are living and how many family members live with you.
What You Will Like About London
- Music is a big part of the UK and London is the center of diverse music genres
- You will love its architecture and visiting old castles around the UK if not in London
- Top attraction including the Ferris wheel, cable car across the Thames and a huge dome will be a part of your daily life
- Attend diverse events in the summer in the Southbank
- There’s an annual pillow fight that occurs on the Trafalgar square
- Great availability of public transportation including the tube and taxi
- Santander cycle or Boris bikes will take you anywhere
- Have Bubbledogs, i.e., both hot dogs and champagne
- There is always at least one musical show running all the time
- Join the rooftop cinema club
- Faster transportation will take you anywhere in London within 40 minutes
- You would love the strangely named buildings such as Shard, Gherkin, Toaster and such
- There are many markets to visit such as Columbia road and brick lane
- You have more chance of meeting the Queen in London than anywhere else
- There are many local hangouts; you can join
Love the Locals of London
- Visit the Tate Modern, science museum and national portrait gallery
- Defacing signs in the tube
- Find your gig in a record shop
- Party like a gentleman
- Visit parks such as Hampstead Heath, Regent Park, Victoria Park, London Fields and more
- Find independent record shops such as the Rough Trade and Phonica
- Spend time in pop-up shops and coffee shops
- The Euro-star will take you to Paris, Germany, Belgium, and Switzerland
- Run the London Marathon
- Enjoy the rain
- Get Wifi at underground stations
- Access to over five airports
- Attend one-day music festivals
- Make friends and have frequent BBQs
- Be a part of one of the most successful and powerful countries in the world
What You May Hate about London
- Expensive – Everything in London is expensive; even with the high salary, living in London is going to be a challenge. If you are on the lower side of the annual income bracket, chances are, you will not be able to experience half the London in your lifetime.
- Stand in Queue – For everything, starting from art gallery to ATMs, you will have to stand in line! That’s just the way things go in London.
- Population – The city is highly populated with an average population of nearly 9 million. On the bright side, London’s population is as diverse as that of India.
- Busy tourists – London is one of the business cities not just because of its native population but also its high volumes of tourists.
- Weather – If you are from the USA, you may admire or detest the fact that weather in London change significantly and can get extreme from pouring rain to hot summers.
Pesky Things About London
- CCTV cameras everywhere – There are CCTV cameras everywhere and probably has the highest number of cameras in the world. On the bright side, the surveillance system is topnotch.
- Busy Traffic – Be it taxi, the tube or just about anywhere, you will have to tackle through heavy traffic to get to your home.
- Commuting – For the most part, you will have to commute to get to anywhere; and it’s expensive. Commuting also takes time and is not a desirable experience when you are traveling in a dark tunnel all packed and squeezed in the tube.
- The same breakfast – People of London have a liking for sandwiches which is common everywhere, even where you don’t have any other option be it for breakfast or lunch.
- Language barrier – If you were French or Japanese, British English is just a new language; but for the Americans, it’s a whole different experience when the English language is so different. You will often find yourself mispronouncing something, and there will always be someone to correct you.
- On the other side of the road – Americans will find it tough to walk, ride and drive on the left side of the road, where the whole roadways are designed that way; plus the steering in the cars on the other side.
- City potholes – It is not uncommon to find uneven pavements, potholes, and clumsy streets.
Top Cheapest Places to Live in London
We know living in London is expensive, which we why we have narrowed down top places in London where living cost is a little cheaper.
- Stepney Green – avg. monthly rent is £848 or $1,087
- Acton – avg. monthly rent is £1,120 or $1,436
- Balham – avg. monthly rent is £1,272 or $1,631
- Canada Water – avg. monthly rent is £1,308 or $1,677
- Finsbury Park – avg. monthly rent is £1,324 or $1,697
- Kentish Town – avg. monthly rent is £1,364 or $1,749
- Shepherd’s Bush – avg. monthly rent is £1,408 or $1,805
Top Boroughs in London With Cheaper House Rent
- Bexley – avg. monthly rent is £1,007 or $1,291
- Havering – avg. monthly rent is £1,083 or $1,388
- Sutton – avg. monthly rent is £1,166 or $1,495
- Bromley – avg. monthly rent is £1,271 or $1,629
- Enfield – avg. monthly rent is £1,285 or $1,647
- Redbridge – avg. monthly rent is £1,300 or $1,667
- Croydon – avg. monthly rent is £1,309 or $1,678
Conclusion
London may be one of the most expensive cities to live in, it certainly is more fun than other expensive cities such as Tokyo. London boasts some of the best companies and universities thereby pulling more professionals and students every year. Moreover, London is more diverse than other posh cities with a cultural exposure that is unparalleled than any American cities. If you are planning to move to London, we hope you have some serious skills so that you can make enough money to enjoy the city.
