Ultimate Guide: Average Cost Of Living In London & How To Survive

We all know the lore about the average cost of living in London: step out your door in and you’ll automatically spend £20. It’s sadly true.

But what do those crazy high numbers actually look like? How much does it cost to live in London, and can you really afford it?

If you’re thinking of moving to London, you need to prepare yourself for the sticker shock. Let’s look at a detailed breakdown of the average cost of living in London, from someone who actually lives here.

Cover image for London in Real Life's post on the average cost of living in London. A cartoon piggy bank with pound coins stacked beside it looks toward an illustration of groceries, housing, and a pint with title text: "Average Cost of Living in London: What's the real price?"

How Much Does it Cost to Live in London?

The real cost of living in London per month depends on who you are and what your life is like. The current average for a family of 4 without rent is £3,772. Yes, it’s that expensive.

If you’re moving here for a job, what will your new salary be vs your current salary? How will your housing costs differ? What about transportation, healthcare, food?

Your daily life might change dramatically, so your cost of living will, too. The average cost of living in London is very different to where you live now: I guarantee it.

Before you make the decision to move to London, it’s important to understand the average cost of living in London per month.

Let’s look at four simple charts that outline all of the monthly costs for different types of households.

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1. Rent

The single biggest factor in the cost of living in London per month is what your rent price is.

So how much is rent in London? It’s not cheap.

informational chart: cost of living in london per month. average rent prices in each London transport zone 1-6 for: a single room, studio, 2 bed, 2 bed and 3 bed with prices for each.

The easiest way to look at average rent is by zone.

London is divided into transport zones. Zone 1 is closest to the city centre and most expensive, and Zone 6 is farthest out (there are more than 6 zones but I’m keeping it concise). Zones 1 and 2 are the most expensive.

Transport costs will vary by zone. For example, taking the tube from Zone 5 to Zone 1 will cost you £5.60 at peak times. But taking the tube from zone 2 to zone 1 will only cost £3.40 at peak times.

Your cost of living in London per month will largely be determined by how far from the city centre you are, both for rent and for transport.

Rent Variables

Colorful Graphic image illustrating additional rental costs in London, including Council Tax, transportation and utilities.

The cost of living in London per month for rent is hugely variable: prices can vary greatly depending on the neighbourhood and proximity to public transportation.

It’s also worth considering alternative options such as flat-sharing, which can help reduce costs.

But before you fall in love with a flat, you need to consider the additional costs of living there.

The most important factors to consider for where to rent are:

Location and associated transport costs.
Utilities: are they included? (Usually not)
Council Taxes: these are based on the assessed value of the home. Some boroughs are more expensive than others.
Energy Efficiency: Most old London homes are terribly inefficient. You may pay much more for heating in the winter than you’d expect, and you may need to invest in an air conditioning unit for summer.

✅ Tips for Finding the Cheapest Rent

Go further out from the city centre
Flat share or look at co-living
Can you work from home, even a few days per week? If so, you can live farther away from Central London without too much trouble.

2. London Monthly Expenses

Now that you’ve considered the cost of rent, it’s time to consider everything else in your budget.

In this chart below, I’ve gathered averages for monthly expenses for different types of renters and families.

chart: average monthly expenses in london for rent, food, transport, utilities, phone, and council tax for single, couples, family of 3 and family of 4. average prices per month for each category

Here are the major monthly expenses to consider for the average cost of living in London. Keep in mind that this chart is just averages: some people will pay more or pay less.

The average cost of living in London per month will also vary by season. In the winter, for example, your utility bill might double for heating. London doesn’t have much air conditioning, and your flat will heat up in the summer.

If you live in Zone 1, your transport costs will be smaller than if you live in Zone 6. You may need to budget more for winter and less for summer.

There are also plenty of ways to save on these monthly expenses, so they’re not set in stone. You can get a phone plan with less data that’s cheaper. You can cook at home more and eat out less. It’s all about your lifestyle and what you can put up with on a daily basis.

If you cannot afford the total at the bottom for your category, it’s worth reconsidering your move to London. Look at your finances and future finances with a realistic lens.

The sticker shock of London will shock you, and it’s best to be prepared for any unforeseen circumstances.

✅ Tips for Managing London Expenses

Can you afford the life you already have? If not, don’t move to London. Other important tips:

What kind of life do you want in London? If you want to travel all the time, can you afford to do that now?
Depend on your salary being lower in London if you’re moving from another big country. London pays more than other UK cities, but the UK pays less than most other places like Canada, the US, and Australia.
Depend on your expenses being higher in London. It’s one of the most expensive cities in the word – there’s no way around that.

3. Groceries & Food

Behind rent and monthly bills, food is another essential expense and can make up a large portion of your budget.

According to data from Numbeo, the average monthly cost of food for a single person in London is approximately £350 ($454 USD) per month. That includes groceries, restaurants, and takeaways.

It’s a lot, for sure, and the numbers only go up as you feed more people in your family.

But there’s one piece of good news about the cost of living in London per month: groceries. Groceries, I’ve found, are generally cheaper in the UK vs America and the rest of the world (of course it depends on where you’re coming from).

Here’s an example from part of my weekly shop on Ocado (a grocery delivery service) to give you an idea of what things cost.

Infographic: grocery prices in London with illustrative graphics and prices: prices of apples, lettuce, milk, cheese, butter, eggs, yogurt, juice, soup, pasta, rice and bread. prices for each converted into USD along with the price in pounds.

In America, I’d spend at least $5 on apples, double on milk, and at least triple for bread. But I came from an already expensive city.

Your cost of living in London per month for groceries will be determined by how much you cook, how many people you’re feeding, and where you shop. There are everything from super budget-friendly markets (like Aldi) to high end grocers (like Waitrose & M&S) in London and the UK.

✅ Tips for Keeping Food Costs Low

Consider what markets are nearby when flat hunting. If you only have posh grocery stores nearby, you’ll spend more.
Remember that food in the UK and Europe expires more quickly than in America and other parts of the world. Shop for less, but shop more often.
Remember that portion sizes and container sizes are smaller in the UK when calculating comparable costs (i.e. 4L milk is a US half gallon).
Forget buying in bulk, because you usually will not have the space to store extra food, cupboard items and household supplies.

4. Daily Expenses

Now that we’ve looked at rent, monthly expenses, and food, it’s time to talk about everything else.

Here are examples of what regular daily purchases might look like.

infographic chart: the average daily living expenses in london for food, entertainment and other (like clothing and travel). Prices listed in GBP.

You’ll notice some of these prices are exorbitant. A pair of Levi’s for $100? It’s crazy. But some are not so bad and pretty comparable to what you’d pay in your home country.

A film ticket in the US is pretty much the same price as in London (£9 = 11.50 USD). A latte for £3.48 is pretty much the same as your daily $5 Starbucks.

✅ Tips for Calculating Expenses

Figure out what you want your London life to look like. Are you moving to London to experience all the best restaurants, clubs, activities, and culture? Factor that into your budget. Are you moving here for easy access to travel the rest of Europe? Factor it into your budget.
Be realistic. Are you moving from a small town where there’s not much to do, and therefore you stayed home a lot? Coming to London will be an even greater sticker shock, because you’ll want to do and see much more.

The Average Cost of Living in London: Final Thoughts

How much does it cost to live in London? It all depends on you: your lifestyle, your family, and your expectations.

The last thing I want is for you to move here and find out that it’s just too expensive; I don’t want you to be miserable and always be hustling for rent.

London is such an enjoyable city, if you can afford it. Take a realistic look at your finances, study the average cost of living in London thoroughly, and plan your budget carefully.

You can do this, if you plan carefully and realistically.