Depending on where you settle, the cost of living in the UK can be higher than in most other countries. To make your move easier, we have compiled a list of what a healthy monthly budget might look like in the city of London and the UK as a whole.
* This article has been updated to reflect prices in 2022
The average cost of rent in London and the UK
London rent can be quite expensive, especially as you move towards the heart of the city. However, there are plenty of affordable places outside the city centre where people love to settle.
Many people in London choose to split rent with flatmates. If you choose to rent an apartment, the following table will give you a good idea of the average monthly costs.
| Property type | Average price range per month* (GBP) |
One-bedroom apartment, city centre | 1,400 – 2,500 |
One-bedroom apartment, outside city | 1,400 – 1,700 |
Three-bedrooms, city centre | 2,500 – 6,000 |
Three-bedrooms, outside city | 1,700 – 3,000 |
*Source: Numbeo
See also: How much a UK visa will cost in 2022
Average food cost per month in London
London has a fantastic range of supermarkets, restaurants and eateries to explore. The cuisine options are endless. These are some of the prices you can expect when shopping or dining out in London:
Restaurant type or item | Average price range (GBP) |
Average restaurant meal | 10 - 30 |
Average meal for two in mid-priced restaurant | 45 - 100 |
Pint of beer | 8 |
Average bottle of wine in supermarket | 6 |
Grocery Prices
Dining out can be expensive, so we've calculated the average cost of your staple 2022 grocery shop below.
Grocery item | Average price (GBP) | Average price range (GBP) |
| Average weekly grocery bill | 65 | 55 - 75 |
Loaf of white bread | 1.21 | 0.69 - 3 |
Milk (1L) | 1.06 | 0.70 - 1.60 |
Eggs (12) | 2.34 | 1.20 - 3.60 |
White rice (1kg) | 1.81 | 1 - 3.90 |
Cheese (1kg) | 6.45 | 2.50 - 15 |
Chicken fillets (1kg) | 6.03 | 3 - 11 |
Beef (1kg) | 10.42 | 5 - 20 |
Potatoes (1kg) | 1.25 | 0.50 - 2.20 |
Onions (1kg) | 1.16 | 0.65 - 2 |
Apples (1kg) | 2.05 | 1 - 3 |
Bananas (1kg) | 1.33 | 0.78 - 3 |
Oranges (1kg) | 1.80 | 1 - 4 |
Tomatoes (1kg) | 2.47 | 1 - 5 |
Lettuce (head) | 0.87 | 0.43 - 1.50 |
Water (1.5L bottle) | 1.21 | 0.50 - 2 |
Wine (mid-range bottle) | 8 | 5.95 - 15 |
Local beer (500ml bottle) | 2.23 | 1.25 - 4 |
Box of 20 cigarettes (Marlboro) | 3 | 11.50 - 15 |
See also: Which public funds are available to immigrants in the UK?
Public transport costs in the UK
Public transport is a popular and efficient way to get around the UK. You’ll have to use it when exploring, house-hunting, job-searching or travelling to and from work. These are the costs you can expect to pay for public transport:
Transportation type/item | Average price (GBP) |
One-way ticket (Underground) | 2.60 |
Monthly pass | 160 (standard single, off-peak) |
Train trip to Cambridge / Brighton | 22(standard single, off-peak) |
Average mid-sized car rental for a weekend | 150 |
Return budget flight to Spain | 80 (economy) |
Eurostar return ticket to Paris | 120 (standard class) |
Return flight to Ireland | 125 (economy) |
Cost of London entertainmentand fitness
As a cultural and business centre, London has an incredible range of choices for entertainment. Keeping fit and healthy will also help alleviate the stress of moving to a new country:
Entertainment type | Average price (GBP) |
Movie | 13 |
Monthly gym membership | 45.65 |
Show on the West End | 140 |
Club/pub entry | 0 - 20 |
International live music concerts | 50+ |
Tipping in London and the UK
Waitrons are generally paid minimum wage, with much of their income coming from tips. If you eat in a British restaurant, a tip of at least 10% is seen as standard, unless the service was unsatisfactory. Some restaurants include a service charge on the bill, especially with larger dining groups, in which case leaving a tip is unnecessary.
There is no need to leave a tip if you’ve simply had a pint poured at a pub, but the 10% recommendation stands at more upmarket co*cktail bars.
It is standard to tip hairdressers’ assistants if you are especially pleased with their service.
Bank account fees
Bank account fees vary by account type. You should be able to open a basic current account with no monthly fees. Premium accounts, however, offer additional services for a monthly fee. If you have recently migrated to the UK, you may not qualify for premium accounts due to eligibility requirements. With our 1st Contact service, you can easily open an account that suits your needs.
Another cost factor is ATM fees. You can usually withdraw money free of charge from your bank's ATMs. However, there are also ATMs that do not offer free withdrawals and charge you outrageous fees per transaction. Avoid unpleasant surprises by using your own bank's ATMs whenever possible.
See also: How to open a bank account in the UK
Money and budgeting tips for London
London is known as one of the most expensive cities in the world. For an average day, we recommend you budget at least £55. A bit of sightseeing or a night out could easily add £35 to this. Outside of London, costs do drop quite quickly, especially if you have a transport pass and are able to cook your own meals.
For transport, get an Oyster card and use buses where you can as they are usually less expensive. You can also cut grocery costs by going to discounted supermarkets like Lidl and Aldi rather than the more expensive Waitrose and Marks and Spencer.
