Cost of Living in the United Kingdom


double decker bus and london taxi cabAs with most popular expat destinations, the cost of living in the United Kingdom will vary depending on lifestyle choices and location. Generally, expats will find that major cities like London are more expensive to live in, while the provinces and areas of the countryside are far more reasonable.

Many expats move to the UK in search of new job opportunities and a better quality of life. Although salaries tend to be relatively high, the reason for this is often to offset the higher cost of living in the United Kingdom.

There are plenty of ways to make savings while experiencing expat life in the UK. For example, most expats living in the United Kingdom will have access to at least some level of free healthcare on the UK’s National Health Service. Expats are also eligible to send their children to British state schools, at no cost.

The cost of accommodation, transport and entertainment are fairly high. However, there are often discounts and savings to be made for expats who take the time to investigate the cost of living in the United Kingdom.
 

Cost of accommodation in the United Kingdom

 
As is the case for expats all over the world, the largest part of a person's budget will be spent on accommodation. Most expats will rent rather than buy property in the UK, as the cost of property in the UK is extremely high. Renting doesn’t come cheap either though, especially in London. A furnished two-bedroom apartment in the London will cost on average GBP 1,900 per month, with large price variations between different areas. Rent in other big cities such as Manchester, Birmingham or Leeds will be more reasonable than the prices one would find in the British capital.

Some young students and expats rent a room within a larger house. It is possible to rent a room in London for around GBP 400 per month. House-shares are also a great way to meet other young people.

Utility costs vary depending on the size of the property. The average cost of water and electricity is around GBP 120 per month. Heating costs average around GBP 70 per month, and increase quite a bit during the winter months particularly if someone is renting an old, drafty property with little insulation.

Council tax is not included in the cost of renting a property in the UK. It is loosely based on the value of the property and expats can expect to pay at least GBP 100 per month.
 

Cost of education in the United Kingdom

 
Expats with temporary residency in the UK will be eligible to send their children to a state school at no cost. Standards vary considerably and the better state schools tend to be located in more affluent areas. At more popular schools, admission is restricted to students living in a particular catchment area. Parents will be required to pay for uniforms, stationary and school excursions.

British private schools, or independent schools as they are commonly called, charge high fees. Parents should expect to pay between GBP 4,000 and GBP 7,000 per term. These schools generally offer a higher standard of education and a whole host of extracurricular activities.

Many expats living in the UK send their children to an international school that allows their child to continue studying the same syllabus as they would in their home country and therefore offer the least disruption to the child’s education. International school fees in London are amongst the highest in the world and can reach up to GBP 12,000 per term.
 

Cost of transportation in the United Kingdom

 
The United Kingdom is served by a national network of trains and long distance buses. With the growth of low-cost airlines in Europe it is also possible to fly between cities in the United Kingdom for a very reasonable price.

Train travel in the UK can be expensive. On average, a return train fare between London and Manchester costs around GBP 70. However, travellers can save money by booking the journey well in advance or by investing in a railcard.

Travelling by long-distance bus in the UK is a more economical option. A one-way trip on a National Express bus from Birmingham to Manchester will cost around GBP 15. However, fares can be as low as GBP 5 if booked in advance using a Coach Card.

Within British cities the price of public transportation varies considerably. London has the UK’s most comprehensive public transportation network but fares are relatively expensive. A single bus fare will cost around GBP 2 for a short journey within the city. Commuters save money by investing in weekly or monthly travel cards.

While most expats living in the UK won’t invest in a car, it is fairly cheap to buy and maintain a car in Britain. Petrol prices fluctuate but are reasonable compared to elsewhere.
 

Cost of healthcare in the United Kingdom

 
One of Britain’s greatest assets is its National Health Service (NHS). Public healthcare in the UK is free to all British citizens and expats from countries such as Australia, New Zealand and EU member states that are exempt from healthcare payments  because they have entered into reciprocal healthcare agreements with the British government. Furthermore, emergency healthcare on the NHS is free to all expats living in the United Kingdom. Anyone who has lived in the UK legally for 12 months or more when starting treatment is entitled to free heathcare on the NHS. 

The United Kingdom also has some excellent private healthcare facilities and private healthcare is the best option for those who want to avoid long waiting lists and are happy to pay for a speedier service. The cost of private health insurance varies according to how comprehensive the policy is and the state of an individual’s health. Prominent healthcare providers include Axa PPP, Bupa and Allianz.

Cost of living in the UK 2014 (based on London) 

(Note that prices may vary depending on product and service provider and the list below shows average prices)
Accommodation (monthly rent in a good area)
Furnished 2 bedroom house
GBP 2,800
Unfurnished 2 bedroom house
GBP 2,500
Furnished 2 bedroom apartment
GBP 1,900
Unfurnished 2 bedroom apartment
GBP 1,700
Food and drink
Milk (1 litre)
GBP 0.75
Cheese
GBP 3.50
Dozen Eggs
GBP 1.25
White Bread 
GBP 1
Rice (1kg)
GBP 1
1 packet of cigarettes (Malboro)
GBP 6.50
Transportation
City centre bus/train fare
 GBP 2
Taxi rate per km
 GBP 2.50
Petrol/gasoline per litre
 GBP1.70
Eating out
Big Mac Meal
 GBP 4.79
Coca Cola (500 ml)   
 GBP 1.25
Cappucino
 GBP 2.50
Bottle of beer
GBP 4.50
Three course meal at a mid-range restaurant
GBP 22.00
Utilities
Internet uncapped ADSL per month
GBP 25 
Mobile call rate (mobile to mobile per minute)
GBP 0.29
Electricity (average per month for standard household)
GBP 70 

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