Cost of Living in London

The cost of living in London is notoriously high, consistently ranking among the priciest cities in the world and making it the costliest place to settle in the UK. Despite this, London is a city full of opportunities, but it’s essential to understand the cost of living in relation to your salary to ensure you budget accordingly.

Transport, although efficient, can be rather pricey. Lifestyle, entertainment, and shopping can be tailored to suit different budgets, though, and there are plenty of ways to save money in these areas while still enjoying all that London has to offer.

Cost of accommodation in London

Most expats living in London tend to rent property rather than purchase. The cost of rentals can be eye-watering, especially in the more sought-after neighbourhoods. Space is limited in the areas close to the city centre, but London’s excellent public transport simplifies commuting and widens your accommodation options.

Housing becomes slightly more affordable the further from the city centre you search, but to find something truly budget-friendly, you may need to go beyond London and consider one of the surrounding commuter towns.

When looking for accommodation in London, be sure to budget for utilities, such as electricity, gas, and water, along with council tax, as these tend to be excluded from the quoted rental price. You'll also need to set aside a security deposit equal to five or six weeks' rent as part of your initial expenses.

Expat Accommodation in London
The Best Areas and Suburbs in London

Cost of transport in London

London boasts an extensive transport network, including the Tube, trams, buses, and taxis. Getting around can become expensive, especially if you live in the outlying suburbs. The best option for regular commuting is to buy a monthly or annual travel card.

There’s little need to purchase a car in London, but if you wish to drive, you should factor in the high parking costs and the congestion fee charged for driving in the city centre. Other expenses to consider include your car’s services, insurance, and maintenance costs.

Getting Around in London

Cost of groceries in London

The cost of groceries in London largely depends on your dietary preferences and where you shop. London is home to a fair few discount supermarkets such as Lidl, Aldi, and Asda, where you can get the essentials at cheaper prices than at shops such as Marks & Spencer and Waitrose. Ultimately, you can save money on groceries by planning your meals, buying in bulk, and using coupons to get discounts.

Cost of entertainment and eating out in London

London offers numerous exciting entertainment offerings. From world-class theatres and music venues to museums and art galleries, there is something to suit all tastes. If you want to try out the most exclusive establishments in the city, you can expect to pay a small fortune for the privilege, although plenty of options are available, even if you’re on a tighter budget.

Many places offer special deals and last-minute offers, where you can attend some of the best events at a fraction of the usual prices. When it comes to eating out, London has countless options, from fine dining at Michelin-starred restaurants to hearty street food.

Lifestyle in London
What to See and Do in London

Cost of education in London

In the UK, you can send your children to a state school at no cost. There are exceptional state schools available in London, but standards vary, so thoroughly researching the various options is essential.

London is home to the largest selection of international schools in the UK, if you prefer for your children to continue following the curriculum of your home country. Fees at British independent and international schools can be high, and these institutions tend to be oversubscribed due to the excellent standard of education they offer. Wherever possible, you should attempt to negotiate an allowance for school fees into your employment package.

Education and Schools in London
Best International Schools in London
Independent Schools in London

Cost of healthcare in London

Both private and public healthcare are available to you in London. As a legal resident of the UK, you can make use of the National Health Service (NHS) to access quality healthcare, although staff shortages and long waiting times can have a negative effect on the experience. Depending on the type of visa you hold and the length of your stay in London, you may have to pay a surcharge to access the NHS.

Private healthcare can be pricey. Health insurance is recommended to help keep costs manageable. The price of health insurance will depend on various personal circumstances, such as health status and lifestyle habits, as well as the level of coverage.

Healthcare and Hospitals in London

Cost of living in London chart

These are the average costs for London in June 2025. Prices may vary depending on the product and service provider.