Okay, we all know that New York is expensive. People flock there every year to go see Times Square, spending $10 for a coffee at the local Starbucks. But – what about when you go overseas? Are there any European cities that can somewhat rival the exorbitant New York pricing structure?

Turns out, there is. London is a thriving metropolis, complete with fancy restaurants, buzzing pubs, exciting tourist attractions, beautiful parks, and – you guessed it – high prices. After living in London for a few years, we can tell you that this is no place for the budget traveler.

Sure, you can make it work – you can avoid eating out in restaurants, you can get the discounted bread at your local Sainsbury’s, and you can get a 6-pack at the corner shop instead of going to the pub every weekend.

However, we can all agree – London is expensive. The cost of living is very high here. But if you enjoy an incredible nightlife, those charming English accents, endless activities, streets and streets of shopping, and outdoor markets for every occasion, then this is the place for you.

Let’s find out just how expensive the cost of living in London actually is – here we give you everything you need to know.

Comparison of Rent

Apartment balconies Lordship Lane tottenham London England – By Acabashi / CC BY-SA (https://creativecommons.org/licenses/by-sa/4.0)

Let’s do a quick comparison to give you an idea of the scale of pricing in England’s capital compared to a well-known US city – Philadelphia. Not New York City by any means, Philly is an up-and-coming city that has grown in recent years, in terms of things to do, apartment buildings, an influx of residents into the area, and the prices.

Comparing these two big cities in the US and the UK, you will see that the rent in London is 33.76% higher than that in Philadelphia – that is a huge variability that can’t be ignored. A single person monthly costs in London, excluding rent, costs around $1,000 – coming in at £825. We don’t really know that many people who can afford that expenditure, excluding rent, and somehow still maintain a somewhat normal and social life outside of work.

Compared to New York City, the rent in London is actually lower than the Big Apple. The average monthly cost for a one-bedroom apartment, or flat as the Brits call it, is around $700 more expensive in NYC. Even so, a one-bedroom flat in the heart of London will cost you at least $2,000 – we recommend finding some roomies to share your living quarters with. 

However, you are more likely to get an outdoor space in your apartment complex or house share in London than you would in New York City. Almost 70% of Londoners have some sort of outdoor space to spend the rare sunny day in. 

Total Cost of Living Compared to the World

https://commons.wikimedia.org/wiki/File:City_of_London_skyline_from_London_City_Hall_-_Oct_2008_-_Aligned.jpg

Looking to move to London from Edinburgh? You might want to think twice about that if you are concerned about your spending budget. London is the most expensive city in the UK, ranking 1st out of 7. 

Not only is London the most expensive on the island of the United Kingdom, but it is more expensive than 93% of cities in Western Europe – ranking 5th out of 59. Pretty crazy, right? Try not to think about this when you go to your local pub and order a pint for almost $8.

Maybe you should travel the world a bit before settling down and trying to make a living in London. After all, you should maybe spend your money first right, before getting a real-person office job in London. You will find that in your travels, the cost of living in London is more expensive than 95% of cities in the entire world. 

Going to the Market

Entrance to Camden Market – by Clem Onojeghuo – Unsplash

Despite the high prices for nearly everything you want, including basic items like chicken or milk, professionals oftentimes find London a great place to live due to the high salaries offered. I guess you can justify spending $5 for a loaf of bread if you make more than $5 per minute. 

Heading to the shop? Good luck spending less than 10 quid on a lunch. Due to England being geographically separate from the rest of Europe, many goods are imported onto the tiny island, making the increase in price applicable to nearly every item.

Food markets and restaurants get even pricier the closer to central London you get, with milk prices as high as $6 a gallon and cheeses costing $7 per pound. Cigarettes cost around $14 per pack on average, with some brands going up to $20. 

If you want to splurge on going out to a restaurant, a nice three-course meal will cost the upper range of around $100 without alcohol. You can try and grab a cheap cheeseburger combo at McDonald’s for $7, a popular lunch-time treat for most office workers. Unfortunately, for the midday pick-me-up, the average price of a cappuccino is between $4.50-$6.00. 

Transportation

Hainault tube station – By Rob_Newby / CC BY (https://creativecommons.org/licenses/by/2.0)

For Londoners, rent and travel expenses are some of the largest bills. Taking the tube every day to work can rack up those bills, costing you sometimes $20 or more a day to get to and from your office. If you can, try and avoid traveling during peak tube hours – this doubles or triples your Oyster card fare. 

A monthly pass for public transportation, a must-have when traveling due to the congested London traffic, is about $190 – just for zones 1 and 2. This is a super tiny area that only encompasses central London, with most people living out in zones 3-8. Taxis cost a whopping $6 per mile with normal rates. This means you can spend around $100 on an Uber to get from one side of London to the other. 

Professional Life

National Audit Office Headquarters London – By David Pearson / CC BY-SA (https://creativecommons.org/licenses/by-sa/2.0)

If you are thinking of moving to London as a professional, you will have to worry about a lot of costs that those here studying do not. You might need to pay for insurance, kids, and other extraneous costs. London is the most expensive city in the world to raise a child, costing the parent almost $350,000 – with a third of this going towards education. 

According to Guardian Jobs, the average salary is around $52,000 – ⅓ of this salary goes to housing costs, and more than half is needed for the addition of groceries and transportation. 

Conclusion

This makes it kind of tough and a bitter pill to swallow to justify living here – however, we love this city, regardless of the crazy-expensive prices. Sure, you can get eight beers in Prague for the price of just one in London, but where else can you go to the Camden Market, go to a 24-hour pub, and cruise down the Thames?

Planning a trip to Paris ? Get ready !


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