An overview of the cost of living in London
London is a multicultural masterpiece of a city. It has everything you could possibly want and more in one exciting place. Many people will move to London each year for the economic opportunities it provides, particularly for those in the financial services industry, which makes up its most popular work sector by far.
The average salary in the UK, partly because of London median salaries, was £38,600 in 2020. But how far will that salary go in London? In this blog, we’re comparing the cost of living in London to other UK cities to see how you might fare as a Londoner.
Whatever you have left over can be sent as a money transfer to family and friends abroad to help them out. We know how important it is to take care of your own – so, at WorldRemit, we make it easy to send money from the UK with fast, secure transfers every time.
WorldRemit Content Team
• 5 mins read • Updated
What’s the average living cost in London?
A single person living in London will need to spend about £910.21 per month, excluding rent costs. For a family of four, those costs are more significant at £3,150.19 per month, also excluding rent.
Here’s how some of those costs break down, according to Numbeo.
| Amount (GBP) |
|---|---|
Meal, inexpensive restaurant | £20.00 |
Loaf of bread | £1.21 |
Monthly travel pass | £159.50 |
Basic utilities | £247.67 |
Full day childcare, one child for a month | £1,589.56 |
1-bedroom apartment (city centre) | £1,753.98 |
1-bedroom apartment (outside city centre) | £1,282.17 |
3-bedroom apartment (city centre) | £3,381.67 |
3-bedroom apartment (outside city centre) | £2,127.91 |
Of course, the costs listed above are rough estimates and your rent will largely be determined by what area of London you live in. We’ll explore that next.
How do different areas of London compare in terms of rent?
London is divided into nine different zones and 32 boroughs. Below, we’ll itemise the top five most expensive places to live and compare with the top five least expensive boroughs to live in.
Top five most expensive boroughs in London
Kensington and Chelsea - £2,535 per month
Westminster - £2,492 per month
City of London - £2,230 per month
Camden - £2,000 per month
Islington - £1,860 per month
Top five least expensive boroughs in London
Sutton - £1,175 per month
Barking and Dagenham - £1,200 per month
Bexley - £1,200 per month
Croydon - £1,250 per month
Hillingdon - £1,250 per month
How does London compare to other UK cities?
But what if London life doesn’t do it for you? You still have a few other big cities to choose from dotted around the UK.
Cost of living in Cardiff compared to London
Cardiff is the capital of Wales where consumer prices are 28.69% less expensive than in London. Rent prices are 137.27% higher in London than in Cardiff. Here’s what that looks like itemised.
| Amount (GBP) in Cardiff | Amount (GBP) in London |
|---|---|---|
Meal, inexpensive restaurant | £14.00 | £20.00 |
Loaf of bread | £0.95 | £1.21 |
Monthly travel pass | £53.00 | £159.50 |
Basic utilities | £219.97 | £247.67 |
Full day childcare, one child for a month | £937.50 | £1,589.56 |
1-bedroom apartment (city centre) | £750.00 | £1,753.98 |
1-bedroom apartment (outside city centre) | £591.25 | £1,282.17 |
3-bedroom apartment (city centre) | £1,208.33 | £3,381.67 |
3-bedroom apartment (outside city centre) | £976.33 | £2,127.91 |
Cost of living in Dublin compared to London
Dublin is the capital of Ireland and its largest city. Consumer prices are 8.26% higher in London than in Dublin. Rent prices are an average of 15.57% higher, too.
| Amount (GBP) in Dublin | Amount (GBP) in London |
|---|---|---|
Meal, inexpensive restaurant | £15.00 | £20.00 |
Loaf of bread | £1.40 | £1.21 |
Monthly travel pass | £104.19 | £159.50 |
Basic utilities | £151.02 | £247.67 |
Full day childcare, one child for a month | £1,035.98 | £1,589.56 |
1-bedroom apartment (city centre) | £1,558.50 | £1,753.98 |
1-bedroom apartment (outside city centre) | £1,266.22 | £1,282.17 |
3-bedroom apartment (city centre) | £2,556.93 | £3,381.67 |
3-bedroom apartment (outside city centre) | £2,012,87 | £2,127.91 |
Cost of living in Liverpool compared to London
Liverpool is a coastal city that’s been popularised by its famous musical acts like The Beatles. You may find that consumer prices are more expensive in London than in Liverpool by about 19.99%. Plus, rent prices in London are a full 184.05% higher in London than Liverpool.
| Amount (GBP) in Liverpool | Amount (GBP) in London |
|---|---|---|
Meal, inexpensive restaurant | £13.50 | £20.00 |
Loaf of bread | £0.95 | £1.21 |
Monthly travel pass | £69.78 | £159.50 |
Basic utilities | £151.42 | £247.67 |
Full day childcare, one child for a month | £955.71 | £1,589.56 |
1-bedroom apartment (city centre) | £667.48 | £1,753.98 |
1-bedroom apartment (outside city centre) | £494.44 | £1,282.17 |
3-bedroom apartment (city centre) | £1,000.00 | £3,381.67 |
3-bedroom apartment (outside city centre) | £783.33 | £2,127.91 |
Cost of living in Manchester compared to London
Manchester has a rich, industrial heritage and plenty of quays to explore. You may also find that the nightlife is lively as it has such a musical past, too. Consumer prices are £20.42% higher in London than in Manchester. Rent prices are £92.96% higher, too.
| Amount (GBP) in Manchester | Amount (GBP) in London |
|---|---|---|
Meal, inexpensive restaurant | £15.00 | £20.00 |
Loaf of bread | £1.15 | £1.21 |
Monthly travel pass | £75.00 | £159.50 |
Basic utilities | £176.28 | £247.67 |
Full day childcare, one child for a month | £1,018.62 | £1,589.56 |
1-bedroom apartment (city centre) | £909.29 | £1,753.98 |
1-bedroom apartment (outside city centre) | £640.88 | £1,282.17 |
3-bedroom apartment (city centre) | £1,725.00 | £3,381.67 |
3-bedroom apartment (outside city centre) | £1,133.33 | £2,127.91 |
Cost of living in Birmingham compared to London
Birmingham was once a manufacturing powerhouse, and now you may find that a few financial services companies are moving their offices here. The city is full of canals that are lined with cafés and bars to enjoy. Consumer prices in London are 27.80% higher than in Birmingham. Rent is 92.67% higher, too.
| Amount (GBP) in Birmingham | Amount (GBP) in London |
|---|---|---|
Meal, inexpensive restaurant | £12.00 | £20.00 |
Loaf of bread | £0.93 | £1.21 |
Monthly travel pass | £57.50 | £159.50 |
Basic utilities | £194.40 | £247.67 |
Full day childcare, one child for a month | £975.00 | £1,589.56 |
1-bedroom apartment (city centre) | £751.87 | £1,753.98 |
1-bedroom apartment (outside city centre) | £582.50 | £1,282.17 |
3-bedroom apartment (city centre) | £1,991.04 | £3,381.67 |
3-bedroom apartment (outside city centre) | £1,110.00 | £2,127.91 |
Cost of living in Glasgow compared to London
Glasgow is a port city with rich cultural ties, home to the Scottish Opera, Scottish Ballet and more. You may also be drawn to it for the educational opportunities that the city provides. Consumer prices are 27.96% higher in London than in Glasgow. Rent prices are also higher in London - at 131.68%.
| Amount (GBP) in Glasgow | Amount (GBP) in London |
|---|---|---|
Meal, inexpensive restaurant | £12.00 | £20.00 |
Loaf of bread | £1.03 | £1.21 |
Monthly travel pass | £77.60 | £159.50 |
Basic utilities | £157.80 | £247.67 |
Full day childcare, one child for a month | £712.54 | £1,589.56 |
1-bedroom apartment (city centre) | £784.38 | £1,753.98 |
1-bedroom apartment (outside city centre) | £565.38 | £1,282.17 |
3-bedroom apartment (city centre) | £1,372.22 | £3,381.67 |
3-bedroom apartment (outside city centre) | £966.67 | £2,127.91 |
Even if your heart is set on London, it’s always helpful to see how far your money might be able to stretch in other cities, before you make your mind up. As you can see, there’s a lot more savings to be made from some of the UK’s other major cities.
But, of course, you have to weigh up these economic factors with other considerations like whether the career you hope to pursue is available in those other cities. Or, if you’re still a student, you have to consider whether those local universities have your preferred course.
Still thinking London is where you want to be? Then the city, and all it has to offer, is waiting with open arms. If you choose the right borough for your budget, you may even have plenty left over each month to send money back home to your friends and family. We’re here to help with that part – offering speedy, international money transfers abroad, wherever your money needs to go!
To find out more about living abroad, please see some of our other recent blogs on the topic. Happy transfers!
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