Cost of Living in the United Kingdom

As with any country, the cost of living in the United Kingdom varies based on your lifestyle choices and location. Major cities such as London have a well-earned reputation for being expensive, and while life in the rest of the UK is by no means cheap, the cost of living is substantially lower outside of large metropolitan areas.

London is among the priciest cities in the world, with high accommodation and transport costs driving up overall expenses. Other major UK cities, like Edinburgh and Birmingham, also have high costs of living but are nevertheless cheaper than London.

Many expats move to the UK in search of new job opportunities and a better quality of life. While salaries are often higher to offset living expenses, careful budgeting is still essential. Fortunately, there are plenty of ways to save while making the most of expat life in the UK. Residents typically have access to free healthcare through the National Health Service (NHS), and families with children can take advantage of state-funded schooling at no cost.

Cost of accommodation in the United Kingdom

Expect to dedicate a significant portion of your income to accommodation in the UK. Renting doesn’t come cheap, especially in major cities, but you'll likely choose this over buying property, which can be prohibitively expensive in metropolitan areas.

London has the country’s most expensive rent, although there are still significant price variations between different areas in the city. Rent in other big cities, such as Manchester and Edinburgh, is a little more reasonable but still pricey, while rental costs in smaller towns will generally be on the lower end of the scale.

If you're a student or young professional, you may decide to rent a room within a larger house or apartment, which can save a substantial amount of money. Houseshares are also an excellent opportunity to make some friends.

Utility costs vary depending on the size of the property. It’s worth noting that heating costs tend to increase considerably during winter, particularly in an airy, older property without proper insulation. Council tax is usually not included in the price of renting a property in the UK, and is loosely based on the property’s value. Additionally, you should budget for the cost of a security deposit, which is usually equivalent to five weeks’ rent.

Expat Accommodation in the United Kingdom
Setting up Utilities in the UK

Cost of transport in the United Kingdom

The United Kingdom is served by a national network of trains and long-distance buses, but with the growth of low-cost airlines, it is also possible to fly between cities at reasonable prices. Travelling in the UK can be expensive, although you can save money by booking journeys well in advance, investing in a railcard, or taking the bus where possible.

Within British cities, the price of public transport varies considerably. London has the UK’s most comprehensive public transport network, but fares are quite steep. You can save money by purchasing either weekly or monthly travel cards.

While most expats living in the UK won’t invest in a car, it is relatively cheap to buy and maintain one, though insurance can be pricey. Petrol prices fluctuate, but are generally in line with other developed countries.

Getting Around in the UK

Cost of groceries in the United Kingdom

While not necessarily cheap, the cost of groceries in the UK can be brought down based on what you buy and where you buy it. With rising inflation, the cost of essential grocery staples such as toilet paper and cooking oil is high in the UK compared to European countries like Italy and Germany. You can minimise your expenses by buying non-perishables in bulk and shopping at discount supermarkets such as Aldi, Asda, and Tesco.

If you enjoy the finer things in life and want to purchase imported cheeses and wines, you'll have to spend significantly more on these luxuries. Premium supermarkets such as Waitrose and Marks & Spencer carry organic and gourmet products at high prices.

Cost of entertainment and eating out in the United Kingdom

The cost of eating out in the UK’s major cities will carry a heavy price tag, so it’s best to cook at home and only occasionally enjoy a meal out if you're on a budget. Similarly, going out for drinks at one of the country’s many pubs and bars will set you back significantly.

If you're a culture buff, you won't be spared either, as tickets for theatres, movies, and concerts can also be pricey. Thrifty expats should look out for specials to enjoy these activities at discounted prices. It’s also worthwhile to check museum entry fees before setting out – these can sometimes be pricey, but other times, entry is at the cost of an optional donation. Green spaces and natural landscapes are plentiful and can be explored at little to no cost, assuming the weather plays along.

Cost of education in the United Kingdom

If you have residency in the UK, you can send your children to a state school at no cost. Standards vary considerably, and the better state schools tend to be located in more affluent areas. You will be required to pay for uniforms, stationery, and school excursions.

British independent schools charge hefty fees. These schools usually offer a high standard of education and a host of extracurricular activities.

If you send your children to an international school, they can continue studying the same syllabus as they would in their home country. This tends to cause the least disruption to the child’s education. Fees at these schools are high, but the standard of education, facilities, and extracurricular activities tends to justify the cost.

Education and Schools in the United Kingdom
Best International Schools in London

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 permanent residents. Non-EEA expats who are ‘ordinarily resident’ (i.e. in the country for longer than six months but not yet a permanent resident) must pay a yearly surcharge to access the NHS.

The United Kingdom has some excellent private healthcare facilities, and private healthcare is the best option if you want to avoid long waiting lists and are happy to pay for speedier service. The cost of private health insurance varies based on the state of your health, and how comprehensive the policy is.

Healthcare in the United Kingdom

Cost of living in the United Kingdom chart