Cost of living in London
Europe’s deepest job market and best transit, at rents that consume roughly half a median take-home salary.
Build your own budget
Monthly spending by category: Housing $2,600, Food $617, Transport $282, Utilities $267, Healthcare $8.03, Lifestyle $169, Other $107.
1-bed, city centre Median advertised rent for this unit type Estimated $2,600
Salary and tax in London
| Gross salary (USD/yr) | Income tax | Social contributions | Take-home / month | Effective rate | Left after costs |
|---|---|---|---|---|---|
| $40,000 | $4,638 | $3,200 | $2,680 | 19.6% | -$1,370 |
| $75,000 | $13,191 | $5,379 | $4,703 | 24.8% | $652 |
| $120,000 | $31,191 | $5,379 | $6,953 | 30.5% | $2,902 |
| $200,000 | $64,822 | $5,379 | $10,817 | 35.1% | $6,766 |
- Bands are shown above the personal allowance.
- The allowance tapers away above £100,000 — not modelled.
People who actually live in London
Quality of life
A year of weather in London
Average monthly temperature in London: January 4.7 degrees, February 6.6 degrees, March 8 degrees, April 10.4 degrees, May 13.9 degrees, June 17.7 degrees, July 18.4 degrees, August 18.3 degrees, September 16.1 degrees, October 12.5 degrees, November 8.4 degrees, December 7.7 degrees. The shaded band is the average daily high and low.
Where these numbers come from
Share of this budget, weighted by money rather than by field count, that rests on a published source rather than our model.
- Measured0%
- Taken directly from a published source. No modelling in between.
- Derived26%
- Anchored to a measured source, then adjusted. The adjustment is stated.
- Estimated74%
- Modelled from regional relationships. Nobody measured this one.
Prices in London
| Item | USD | GBP |
|---|---|---|
| Housing (monthly rent) | ||
| One-bedroom, city centre | $2,600 | £1,944 |
| One-bedroom, outside the centre | $1,900 | £1,421 |
| Three-bedroom, city centre | $5,200 | £3,888 |
| Three-bedroom, outside the centre | $3,200 | £2,393 |
| Buy price per m², city centre | $15,000 | £11,215 |
| Bills | ||
| Utilities, 85m² apartment | $320 | £239 |
| Home internet, 60 Mbps+ | $38 | £28 |
| Mobile plan | $21 | £16 |
| Food | ||
| Groceries, one adult per month | $336 | £251 |
| Meal at an inexpensive restaurant | $18 | £13 |
| Three-course dinner for two | $81 | £61 |
| Coffee | $4.07 | £3.04 |
| Beer in a bar | $7.24 | £5.41 |
| Transport | ||
| Monthly transit pass | $170 | £127 |
| Taxi, per km | $3.10 | £2.32 |
| Petrol, per litre | $1.85 | £1.38 |
| Health, family & lifestyle | ||
| Health insurance, per adult | $90 | £67 |
| Full-time childcare, one child | $1,800 | £1,346 |
| International school, per year | $32,000 | £23,926 |
| Gym membership | $60 | £45 |
| Cinema ticket | $16 | £12 |
Prices are held in USD and converted at the August 2026 snapshot rate. Last reviewed 2026-08-01. Every figure carries its own provenance — see where these numbers come from.
Living and working here
Skilled Worker and Global Talent routes. No remote-work visa; visitors may work remotely for a foreign employer for up to 6 months.
1 USD ≈ £0.75
Europe/London
oceanic climate
Compare London with…
Getting set up in London
The things people end up arranging in the first month in London — usually in roughly this order. We have picked services that work before you have local residency, which is the constraint that catches most people out.
- AiraloesimData eSIM for the first weeks before you get a local number.
- SafetyWinginsuranceHealth and travel cover written for people living outside their home country.
- WisetransferMoving money between currencies without the bank spread.
- RevolutbankingA multi-currency account that works before you have local residency.
- Kiwi.comflightsOne-way and multi-city routing for a move rather than a return trip.
- Booking.comstaysSomewhere to land for the first month while you look at flats.
These are affiliate links: if you sign up, we may be paid a commission at no extra cost to you. It does not change what any of them costs, and it has no bearing on the numbers anywhere else on this page — those come from the model, not from anyone paying us.
Know what things really cost here?
No submissions yet. Yours would be the first.
We publish the median, not the mean — one mis-keyed rent should not move the number.
Frequently asked
How much money do you need per month to live in London?
A single adult renting a one-bedroom in the centre and living moderately needs roughly $4,050 a month, of which $2,600 is rent. A couple sharing that flat needs about $5,018, and a family of four in a three-bedroom outside the centre with childcare needs about $10,261.
Is London expensive?
On our index London scores 63 where New York is 100 — about 37% below New York for the same household. The average local net salary of $3,600 a month covers 0.9× that budget.
What salary do you need in London?
To cover the single-adult budget of $4,050 a month after tax, you need roughly $63,000 gross a year — before any saving. Add 30–40% on top if you want to save meaningfully.
How much is rent in London?
A one-bedroom in the centre averages $2,600 a month, $1,900 outside the centre. A three-bedroom runs $5,200 central and $3,200 further out.
Can you work remotely from London?
Skilled Worker and Global Talent routes. No remote-work visa; visitors may work remotely for a foreign employer for up to 6 months.
Sources
- World Bank – ICP price level & PPP indicators— price levels, purchasing power normalisation
- OECD – Prices and purchasing power parities— price levels, household consumption
- Open-Meteo historical climate archive— climate
- exchangerate.host / ECB reference rates— currency conversion
Figures are modelled estimates built for comparison between cities, not a quote for any individual. Read the full methodology.