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What is the Cost of Living in London in 2025?

What is the Average Cost of Living in London?

The cost of living in London will tend to differ based on factors like the area, type of accommodation, number of family members, lifestyle, personal expenses, and more. 

Check out the average cost of living in London in the table below: 

Area of Expense Cost
Rent £1,087 - £2,805
Entertainment Starts from £60
Groceries Starts from £200
Transportation Starts from £177
Utilities Starts from £160
Schooling of children Starts from £950

Cost of Living in London for Bachelors

The cost of living in London for bachelors ranges from £1,552 to £3,453. However, it will tend to differ across individuals based on factors like the area, personal spending habits, and lifestyle choices.  

Find the details of the key expenses listed below:

Area of Expense Price Range
Accommodation £952 - £2,457
Groceries Starts from £235
Transportation Around £156
Utilities £285 - £314
Entertainment and Shopping Around £124
Housemaid Starting £14 per hour
Wi-Fi Starting £24.99
Bus Pass/Metro Pass Starting £164
Miscellaneous £200 -£300

Cost of Living in London for Students

The cost of living in London for students usually ranges from £1000 to £1600 per month. This includes rent, groceries, transportation, utilities, and other miscellaneous expenses. 

Following are the key expenses of students living in London: 

Area of Expense Price Range
Rent (shared apartment) Starting £235
Rent (single room PG) Starting £750
Food (monthly) £100 - £200
Transportation (monthly) £30 - £40
Utilities (monthly) £40 - £50
Wi-Fi Starting £24.99
Miscellaneous £200 -£300
Bus Pass/Metro Pass Starting £164

Cost of Living in London for a Family

The average cost of living in London for a family of four members ranges between £4,000 and £4,500. This usually depends upon location, accommodation type, number of family members, lifestyle costs, personal expenses, taxes, and more. 

Here are the key expenses for families living in London: 

Area of Expense Price Range
Accommodation £1,800 - £6,000
Groceries & Food £470 - £940
Transportation Starting £160
Utilities Starting £314
Entertainment & Shopping Around £500
Education & Daycare £1,815 - £18,892
Housemaid Starting £14 per hour
Wi-Fi Starting £24.99
Miscellaneous £800 - £1,200

Cost of Living in London for Couples

The average cost of living in London for couples ranges from £2,500 to £3,000 per month. This includes groceries, rent, utilities, dining out, etc. 

Listed below are the key expenses for couples living in London:

Area of Expense Price Range
1 BHK apartment for rent Starting £1,100
2 BHK apartments for rent Starting £2,150
Electricity bill Starting £285
Bus pass Starting £164
Wi-Fi Starting £24.99
Groceries Starting £470
Meal for two Starting £38
Housemaid Starting £14 per hour
Miscellaneous £400 -£600

Factors That Determine the Cost of Living in London

Find the factors that help determine the cost of living in London listed below:

 

1. Accommodation

A significant part of your monthly salary will go into paying the rent for a living space in London. The cost of accommodation in the capital of the UK is much higher than that in the other cities in the country.

Classification of Accommodation Approximate Cost
House/apartment £1,450 - £5,500
Airbnb (1 day) £28.58 - £98.38
Studio apartment £1,300 - £3,900
Co-working space £139 - £609
Paying guest £250 - £1,400

2.  Groceries

One of the most significant monthly expenses in London is the money spent on groceries. The table below shows the approximate price for a basic grocery list

Grocery Items Approximate Cost
Milk (1 litre) £1.30
White bread (1 loaf) £1.52
White rice (1 kilogram) £2.07
Eggs (1 dozen) £3.23
Cheese (1 kilogram) £8.06
Chicken fillets (1 kilogram) £7.52
Apples (1 kilogram) £2.67
Bananas (1 kilogram) £1.37
Oranges (1 kilogram) £2.52
Tomatoes (1 kilogram) £3.27
Potatoes (1 kilogram) £1.26
Onions (1 kilogram) £1.21
Lettuce (1 kilogram) £0.97

3.  Transportation

Individuals who plan to commute using public transport can opt for a monthly pass to reduce the cost of transportation. The monthly passes allow individuals to continue travelling in tubes and buses without paying anything extra.

Fuel Cost/Transportation Service Approximate Cost
One-way ticket (public transport) £2.80
Monthly pass (public transport) £200
Taxi 1 km normal tariff £1.90
Price of diesel (as of 1st July) 144.28 pence per litre
Price of petrol (as of 1st July) 150.06 pence per litre
Cabs (minimum cost) £3.20

4.  Utilities

The monthly cost of living in London also includes the household and common utility bill. These utilities include electricity, council tax, gas, water, TV licence and internet. The table below illustrates the approximate money spent on utilities

Utilities Approximate Cost
Electricity, cooling, heating, water, garbage £284.61
Local prepaid mobile tariff (1 min) Starting £0.37
Unlimited internet package £30.38

5.  Entertainment and Leisure

A monthly membership in a gym will cost around £ 43 in London. The entrance to galleries, museums and parks is generally free. Furthermore, London allows student reductions on showing the student identity card.

Area of Expense Approximate Cost
1 month gym membership £45.57
1 hour rent for a tennis court £14.25
1 seat at a cinema hall £15
Meal in an affordable restaurant (1 person) £20
Three-course meal in a mid-range restaurant £80
McMeal at McDonald's £8

6.  Childcare and Schooling

London has various top-ranking schools. However, getting admission to a local state school is sometimes tricky. In such cases, the parents opt for private education for their kids.

Schools and Childcare Approximate Cost
Preschool, private, full-day for 1 child £1,816
International primary school for 1 child £18,892

Tips on Reducing the Cost of Living in London

Important Things to Know Before Moving to London

FAQs about the Cost of Living in London