Cost of Living in London

Is London expensive?

London is the 8th most expensive city in the world, and the costs show it. A family of four in London can expect to spend around £8,217 per month, including £3,782 for living expenses and a hefty £4,435 for rent. For a single person, the total monthly cost comes to about £3,224, with £1,074 going towards living expenses and £2,150 for rent.

When you compare this to other major cities like Berlin, where a family of four would spend around £4,801 monthly and a single person about £1,871, London is significantly more expensive. The Amsterdam cost of living is somewhere in the middle, with a family of four spending about £6,066 per month and a single person around £2,627. Overall, the high rent makes the cost of living in London one of the highest in Europe (Source: Numbeo).

Rent per month

Here’s an overview of the average monthly rent in London, depending on the apartment's size and location (Source: Numbeo):

• Apartment (1 bedroom) in the city center: £2,150
• Apartment (1 bedroom) outside of center: £1,595
• Apartment (3 bedrooms) in the city center: £4,435
• Apartment (3 bedrooms) outside of center: £2,801

London's rental market in 2024 is finally cooling down after a few hot years. High interest rates and inflation have pushed rents up, especially in central London, making it tough for renters. The Renters Reform Bill is in the works to give tenants more rights, which could lead to longer leases and fewer rent hikes. But with London's population growing and housing still in short supply, rents are likely to stay high. Expats moving to London should be ready for steep prices and competition but can expect more tenant protections. Planning your budget and searching thoroughly will be key to finding a good place and expect rent to be a big chunk of your London cost of living (Source: Cozee Properties).

Best areas to live in London:

• Richmond — Scenic, family-friendly, low crime, lots of parks, riverside views.
• Putney — Riverside living, market town vibe, green spaces, great for families.
• Marylebone — Central yet tranquil, upscale shops, grand terraced streets, lively atmosphere.
• Dulwich — Leafy, peaceful, family-oriented, Victorian homes, excellent local schools.
• Bexley — Village atmosphere, strong community spirit, green areas, top-rated schools.
• Kingston-upon-Thames — Riverside shopping, low crime, great schools, family-friendly amenities.
• Harrow — Excellent schools, cultural diversity, safe neighborhoods, convenient transport links.

Up-and-coming neighborhoods:

• Hayes — Major regeneration, Crossrail access, Heathrow nearby, new housing developments.
• Colindale — Redevelopment hub, young buyers attracted, schools, expanding shopping centers.
• Poplar — Affordable near Canary Wharf, new developments, excellent transport connections.
• White City — Massive regeneration, upscale apartments, Westfield shopping, trendy cafes.
• North Greenwich — Rapid development, modern apartments, proximity to Canary Wharf, and cultural venues.
• Queen's Park — Victorian charm, community initiatives, close to central hotspots, green spaces.
• Bermondsey — Riverside lofts, vibrant cafes, antique markets, ideal for city professionals.
• Havering — Rural feel, green spaces, growing developments, affordable family homes.

Worst areas to live in London:

• Camden — Cultural hub but crime issues, pricey housing in some parts.
• Brixton — Energetic, multicultural, improving safety but still has crime concerns.
• Tottenham — Affordable housing, high crime rates, unemployment challenges persist.
• Southwark — Trendy areas, high crime in parts, gang-related incidents reported.
• Newham — High violent crime rates, and gang activity.
• Croydon — Youth gang issues, rising knife crime, and safety remain a concern.
• Hackney — Trendy but high crime hotspots, mixed safety across districts.

How to find an apartment in London

Finding a rental in London can be tricky due to high competition, limited availability, and high prices. Start by setting a realistic budget — ideally, your rent should be no more than 30-35% of your monthly income. Use property websites like Zoopla and Rightmove to explore current listings. If you're looking for a room in a shared flat, SpareRoom is a great resource. Consider the pros and cons of different neighborhoods. Central areas are convenient but expensive, while outer zones are more affordable and still well-connected by the Tube (aka the London Underground). Also, be aware that bills like utilities, council tax, and transport add to your cost of living in London, so factor those in when choosing a location.

Act quickly once you find a place you like, as London's rental market moves fast. Ensure you have all the necessary documents ready, including proof of income, a copy of your passport or ID, and a Right to Rent Share Code if you're an expat — you can read more about it here. Some landlords may require a UK-based guarantor, which can be a challenge if you're new to the country. In this case, you might need to use a guarantor service or pay a larger upfront deposit. Always view the property either in person or through a virtual tour before making any payments, and be cautious of rental scams. Use reputable agents and websites, and never transfer money without verifying the property's legitimacy. If possible, get a short-term rental or stay in a hotel while you search, so you have time to make a decision without rushing into a long-term lease.

Property prices

The average price per square meter to buy an apartment in London is around (Source: Numbeo):

• City center: £13,351/sqm
• Outside of the city center: £8,112/sqm

If you are planning to buy a property in London, you must consider several things. If you plan to live in the property, you’ll need a valid UK visa, as owning property in the UK doesn't automatically grant you permanent residency or UK citizenship. Once you know that you qualify and you can buy property, start browsing property websites like Rightmove or Zoopla to get a sense of the market and prices. Decide if you want a leasehold or freehold property, as this affects your ownership rights. It’s helpful to work with a local estate agent to navigate the market. Once you find a property you like, make an offer and hire a solicitor for conveyancing to handle the legal details, like property searches and contracts.

Make sure to keep an eye on the costs involved, especially taxes. You'll need to pay Stamp Duty Land Tax (SDLT), which ranges from 2% to 12% of the property's price, plus a 2% surcharge for non-UK residents. You can use the Stamp Duty Calculator to estimate what you'll owe. If you’re buying the property as an investment, be aware that rental income is subject to UK income tax. And, if you sell the property later, you might have to pay Capital Gains Tax on any profit. Getting a mortgage as a foreigner is possible but often requires a larger deposit and may come with higher interest rates, so it’s worth talking to a mortgage broker early on. Just remember, buying property in London doesn’t automatically grant permanent residency or UK citizenship, so make sure you have a clear visa or residency plan in place.

Utilities

Here’s what you can expect to pay on monthly utilities in London (Source: Numbeo):

• Basic utilities (electricity, heating, cooling, water, garbage) for 85m² apartment: £252
• Mobile phone monthly plan with calls and 10GB+ Data: £15
• Internet (60 Mbps or more, unlimited data, cable/ADSL): £31

These costs can really add up over the year. However, you can cut them down by following these tips:

• Track and manage energy use: Use apps like Meter Readings to track electricity and gas consumption. For budgeting and managing costs, Money Dashboard helps you track your spending on utilities.
• Switch energy providers: Use comparison sites like uSwitch to find cheaper energy tariffs. Services like Switchcraft and WeFlip automatically switch you to better deals to help you save.
• Earn rewards for reducing energy use: If you have an electric vehicle, Ohme offers rewards for charging during off-peak hours.
• Save on mobile and internet: Use BillMonitor to find the best mobile tariffs, and Broadband Genie to compare broadband deals and save on internet costs.
• Cashback and voucher offers: Get cashback on utilities through TopCashback and find vouchers on MoneySavingExpert.
• Optimize energy efficiency: Wiser Energy provides smart devices to monitor and manage your energy use and EnerGuide offers evaluations to help you reduce long-term costs.

Public transport

London's public transport system is extensive and easy to navigate with an Oyster card or contactless payment, usable on the Tube, buses, Overground, and DLR (Docklands Light Railway). The Tube (the London Underground) is often the quickest way to get around (although it can get very crowded at rush hour), while buses are a great alternative to get through the city. Use the TfL journey planner and the TfL Go app for live updates. If you prefer cycling, the Santander Cycles scheme offers convenient bike rentals across London. For river travel, check out Thames Clippers, and for journeys beyond central London, explore the National Rail services.

London travel ticket (Source: TfL):

• Oyster card: £7 — discounted fares and a daily cap of £8.50 in zones 1-2
• Single journey: £2.80 (Oyster or contactless) or £6.70 (cash)
• Contactless card: No extra card needed. Offers the same fares and daily cap as the Oyster card.
• One day travelcard: £15.90 — for zones 1-4.
• 7-day travelcard: £42.70 — for zones 1-2

• Bus passes:

  ◦ Daily cap: £5.25 for unlimited bus travel with Oyster/contactless.

  ◦ Weekly pass: £24.70

Taxi (Source: Numbeo):

• Taxi start (Normal tariff): £4.75
• Taxi 1 km: £1.95
• Taxi 1 hour waiting: £30
• From the airport to the city center: £40 (from London City Airport)

Food

London offers a variety of supermarkets for all budgets. For affordable options, try Aldi or Lidl, though they have limited locations in central London. Tesco and Sainsbury's have more stores, including express locations for quick shopping, though they can be pricier. Higher-end stores like Waitrose and Marks & Spencer are best for those on a bigger budget. For convenience, Ocado and other supermarkets offer online delivery. For fresh, affordable produce, check out local farmers' markets. Most supermarkets have loyalty cards like Tesco Clubcard and Sainsbury's Nectar Card to help you save. Look out for these, as in the long run small amounts can add up and help you with the cost of living in London.

Depending on shopping and dietary habits, groceries in London tend to cost around (Source: Reddit):

• For a single person: £200-£400
• For a couple: £400-£800
• For a family of four: £600-£1,000

Here are some typical grocery items to give you a rough idea of prices (Source: Numbeo):

• Milk (1 liter): £1.30
• Loaf of fresh white bread (500g): £1.50
• Rice (1kg): £2.20
• Eggs (12): £3.20
• Chicken fillets (1kg): £7.40
• Domestic beer (0.5 liter draught): £6.50

Childcare

If you're looking for childcare in London, there are plenty of options, but it can get pricey. Depending on what you choose — like nurseries, childminders, nannies, or au pairs — costs can vary quite a bit. The good news is that there are government programs to help out, like free childcare hours for kids aged 2-4 and Tax-Free Childcare, which can cover up to 20% of costs. This is quite generous and can really help with the high London cost of living if you have a family. To find local childcare options, check out the UK government website and Childcare.co.uk.

Types of childcare and prices (Source: Money Helper):

• Day nurseries: For ages 0-5, open Monday-Friday. Costs: £137.69/week (part-time), £263.81/week (full-time).
• Preschools/Nursery schools: For ages 2-5, linked to primary schools.
• Childminders: Care in their own homes. Costs: £118/week (part-time), £229/week (full-time).
• Nannies: Care in your home. Costs: £400-£650/week (full-time), £10-£16/hour (part-time).
• Au pairs: Up to 30 hours/week for accommodation and at least £90/week.
• Before and after-school clubs: Average cost: £62.13/week.
• Playgroups: Informal care for ages 2-5. Costs: £5-£15 per 3-hour session.
• Preschool (or Kindergarten), full day, private, monthly for 1 child: £1,810 (around €2,150).

International yearly school fees (Source: International Schools Database):

• Southbank International School: £19,230-£39,195
• The American School in London: £35,400-£40,900
• The Roche School: £15,606-£20,280
• International School of London: £23,250-£32,450
• EIFA International School London: £21,321-£25,851
• International primary school, yearly for 1 child: £19,756 (roughly €23,400)