Your guide to the cost of living in London

Discover the true cost of living in London with insights on groceries, leisure activities, health insurance, accommodation, and public transport expenses.

Ivandzhelin

6 minute read

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Updated on 12 Sep 2023

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Living

For years now, the UK’s capital has been ranked as the best city in the world. However, living in London comes with a steep price tag. The city ranks 15th among the world's most expensive cities to live in.

To live here, it's important to budget according to the living expenses in London. Fortunately, we have done the research for you. Keep reading to discover the rent, food, and leisure expenses in London.

Compared to other European capitals like Amsterdam and Paris, London is more expensive. But with an average monthly salary of £3,233 and a cost of living of £2,169, living in London doesn’t have to break your bank.

If you make a monthly budget and stick to it, you don’t have to deprive yourself of the exciting things London offers, like its vibrant nightlife.

Your average expenses may vary, but there’re certain estimates you can rely on to stay within your budget. We’ve broken down the cost of living in London into 5 categories: accommodation, groceries, leisure, health insurance and public transport.

Unsurprisingly, rent will take up the largest chunk of your monthly budget, followed by groceries and public transport. On average, excluding rent, you’d need £996 per month to live in London. When factoring rent, you’re looking at a monthly cost between £1,552 (renting a room) and £3,453 (renting an apartment) as a single person. A couple living in London can expect monthly expenses ranging from £2,500 to £3,000, while a family of 4 would typically have estimated monthly costs of around £5,400.

To make a better budget for yourself, let’s take a closer look at the different categories.

As you’ve noticed, accommodation is what drives up your monthly cost of living in London. The rent you'll pay varies depending on the type of accommodation and its location. As a rule of thumb, the closer you’re living to Central London, the higher your average rent price will be.

Here’s what you can expect in terms of average rent in London:

Given London's international character, there’re several neighbourhoods that expats can choose from. To narrow down your search, you can check out our guide to the best neighbourhoods in London, which provides information on the average rent prices in each area.

London's rental market is competitive, and finding a place can be difficult. To avoid feeling rushed and becoming a rental scam victim, start exploring rental homes in London months in advance. With HousingAnywhere, you can browse hundreds of properties online, book from abroad, and be assured that your rent will be protected until 48 hours after moving in.

Groceries are one of the most variable expenses, as they depend on your dietary choices and shopping preferences. As a rough estimate, a single person in London can spend between £200 and £300 per month on groceries, while a couple should budget around £430. For a family of 4, the average monthly food bill is around £725.

Here's a breakdown of average grocery prices in London:

You can save money on groceries by planning your meals, cooking at home, and shopping at markets and cheaper supermarkets like Aldi, Asda, and Lidl. Most supermarkets also have coupon systems on their apps where you can collect points and get discounts.

The UK offers 2 types of health insurance: public and private. Residents of the country can receive free public healthcare through the National Health Services (NHS).

Private health insurance is an option for those seeking additional medical services alongside NHS care. The cost of private health insurance varies based on personal circumstances and the coverage chosen, typically ranging between £85 and £125 monthly.

London has one of the world's most extensive public transport networks, covering the entire Greater London area. However, using London’s public transport comes at a steep price.

Buying single tickets is the most expensive way of paying for public transport. A single paper metro ticket costs £6.70.

To save money, you have the option of using an Oyster card or making Contactless payments with your debit/credit card. With these methods, a single metro journey costs only £2.80. When traveling by bus, you can take advantage of the Hopper fare that allows unlimited travel within a one-hour period for just £1.75.

Additionally, there’re alternatives such as Travelcards and Bus & Tram passes, which offer fixed monthly payments and unlimited travel options.

Life cannot be all budgeting and no play. Living in London, you have the chance to indulge yourself in the many exciting opportunities the city offers.

Be it relishing a delicious dinner at a Michelin-starred restaurant, savouring a tasty cocktail at a funky bar, seeing the works of Warhol at Tate Modern or watching Wicked on West End, London has it all. To fully embrace these leisure activities, you should allocate between £86 and £124 per month depending on how often you like to go out.

Here's a breakdown of the prices you can expect when indulging in leisure activities in London:

Dining out:

Leisure time and personal care:

Living in London might be expensive, but it’s worth it. Now that you are aware of the expected monthly costs of living in London, the rest is up to you.

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