The Cost of Living in London: how much does it cost per month?
Your finances are one of the first thing you should consider when moving to London. From initial set up costs to salary, there are many elements to consider:
Savings
Salary
Accommodation
Transport
Entertainment and activities
Savings:
You’ll need to come to London with some savings. This will be to cover the first month or so while you are looking for a job, rent for your first month and deposit for your rent as well as any transport and entertainment costs when you first arrive.
I moved to London with about £5000 in savings. You can use this calculator to convert to your local currency. If you are moving to London without a job your savings need to cover you for one to two months before you start earning income. Also keep in mind, most jobs in the UK will pay your salary monthly at the end of the month. So if you start at the start of a new month, you’ll be waiting another month to receive you first pay check.
You should have enough savings to cover:
One month’s rent
A deposit for your rental or a month in advance
Transport costs
Food cost
General entertainment and activities
I'd recommend coming with a minimum of £5,000 like I did, and if you want to be extra cautious, £10,000 will be more than enough to cover you for a couple of months before you start earning a salary
Accommodation:
If you do not have a flat share or apartment secured before you move to London, you will need to have enough money for temporary accommodation in a hostel, Airbnb or hotel.
Cost of a hostel in London per night: between £24-£45
Cost of an Airbnb in London per night: between £50-£150
Cost of an average hotel in London per night: £150-£180
It will generally take between 1-3 weeks to find permanent accommodation in London. The average cost of temporary accommodation will be approximately £1700 (assuming it takes you 3 weeks to find somewhere). So I'd recommend having at least £1,700 of your savings allocated to initial accommodation costs when you come to London
When you are looking for permanent accommodation your options are a room in a share flat or an apartment. Generally rent will be about £800-£1400 for a room in a shared house and anywhere from £1500 upwards for a small one bedroom apartment. You’ll also have to pay a deposit or for a months rent in advance so your looking at between £1600-£3000 (or more).
Salary:
London salaries wildly vary depending on the industry position and the level that you are. According to the UK Office for National Statistics (ONS) the average London salary is £44,375. After tax you will be left with £2,956 per month (assuming you do not enrol in a pension plan).
From my experience, this would be a comfortable salary to live in in London if you live in a flat share or are sharing an apartment with a partner or friend, go on 2-3 short Euro holidays a year and do one or two social activities a week. It won’t leave you with much left to save but you will have enough to live and enjoy your life in London.
To have enough to enjoy your life in London and have money left for savings, a wage of £60,000 or more would be ideal. A £60,000 salary will leave you with £3,780 left a month after tax and national insurance. If your moving to London from the US the wages may be lower than what you are used to. But remember, its all relative. Generally the cost of living is lower than a city like New York and the wages are reflection of this
Transport:
The great thing about TFL is that you can pay by tapping your bank card so you don’t even need to buy a travel card.
So how much is transport in London per month?
There is a daily cap on the amount you are charged for traveling around London. The amount you are charged is dependent on what zone you travel to and from. You can travel as many times as you like in one day.
The Daily Cap rates are:
Between Zone 1 and Zone 2: £8.50
Between Zone 1 and Zone 3: £10.00
Between Zone 1 and Zone 4: £12.30
Between Zone 1 and Zone 5: £14.30
Between Zone 1 and Zone 6: £15.60
Between Zone 1 and Zone 7: £17.00
Between Zone 1 and Zone 8: £20.10
Between Zone 1 and Zone 9: £22.30
Most people will live in zone 2 when they first move to London, so you’ll roughly be paying between £200-£250 per month on travel if you are travelling on TFL 5-7 days a week.
TFL provides a spread sheet that outlines every fee for every zone, which is very detailed, but can be over whelming to interpret.
Entertainment and social activities:
This is where cost will vary depending on your situation and budget. I’d recommend allowing about £100 a week to spend on socials and activities if you really want to enjoy your time in London, however you can definitely get by on less if your creative about how you spend your time. Below are some free activities and the rough cost things in london that you will be sure to spend your money on!
A pint: £6.75
Glass of wine: £6.50
Evening meal out (not including drinks) : £40.00 per person
Brunch meal out: £25.00
Festival tickets: £50.00
Museum exhibition free or approx is paid £20.00
Uber: £25.00 from zone 1 to zone 2, £35.00 or more in from zone 1 to zone 3
So as you can see, depending on your social life the cost of entertainment and social activities can add up
In summary, yes London is expensive. However the cost of living is comparable to salary an you also have potential to earn more than most cities in the world. If you’ve just arrived in London, make sure you have some savings to float you until you find employment and you’ll have a smoother journey to your new life in London.