It is a known fact that cost of living is very expensive in the UK and particularly in London. This is not only due to the high cost of housing but in recent years the prices of petrol, food, utilities, and other basic necessities have also increased rapidly. London is a city full of life and things to do and many consider it worth the rent prices.
This article will help you budget and manage your expenses if you plan on making a move to London.
When living in London, chances are that a huge part of your salary will go towards paying for apartment or house. Owing to high population density in London, land is a premium property and rental cost in the city is increasing every year. If you opt for a one-bedroom apartment on rent in a central location, you can expect the prices to start at GBP 1,500 per month and a three-bedroom apartment will cost you an average of GBP 2,800. If you want to rent a one-bedroom apartment outside the city centre, it will cost you an average of GBP 920 per month and GBP 1,700 per month for a three bedroom.
Buying a new home or accommodation apartment in London can be very expensive more than you expect and there are many hidden costs that can add more than 10% to the total bill. You also need to budget for stamp duty, conveyance, mortgage arrangement fees and estate agent fees etc. The average cost of buying a two-bedroom property in Marsh Wall, South Quay is around £ 75,0000.
If you are planning for flat share accommodation room, rooms in Paddington, Zone 1, can cost £1100 per month, whereas a room in Ealing, Zone 4, can be almost half of that. While location like Richmond and Kingston are far more expensive with averaging £1929 a year. So it completely depends on the location.
You can get a fair idea about the average property prices of different areas in London, have a look on websites such as Property Watch, Zoopla and Rightmove. Before finalising the place you want to live, it is significant to look for the location that suits your budget and lifestyle. The good aspect about renting in London is that most of the apartments come fully furnished.
Looking at utility bills, you will find the cost of utilities can also make huge toll on your budget. In London, the utilities include electricity, gas, telephone, internet, TV and council tax. It is difficult to say what the average cost of electricity and heating might be as this is dependent on the size of your apartment, how many occupants there are and how economical you are with its usage. As far as electricity and gas facilities are concerned, there are many service providers like Npower, E.ON, British Gas and EDF. Price hike in gas and electricity are an ongoing matter in UK. You can switch to any particular supplier in case you get good deal. Some price comparing websites are available are Which, USwitch, GoCompare and Money Supermarket.
Your cost of transportation will vary, depending upon the location where you live. If you choose to reside in central London, as you can reach nearby locations by walking or cycling. Get an Oyster Travelcard for travelling on the tube, in trains, buses, and trams. If you live and travel between Zones 1 and 2, the expenses will be around GBP 124.50 per month and GBP 1,296 annually. If you are travelling in zones 1-3, an annual Travelcard costs GBP 1,520. Further, the figure will increase to GBP 2,364 annually for Zones 1-6.
Owing a car in London is an expensive affair especially if you are driving into the city centre. Additionally there is a congestion charge of GBP 10 per day that can make the cost even high. The price of petrol is currently at GBP 1.40 per litre for unleaded and GBP 1.45 per litre for diesel. If you are travelling in to central London, it can be very challenging to find parking spots whereas most people choose public transport.
There are so many things that go on in London and the expenses here are quite high but never miss a chance to experience the best that London has to offer whatever is your budget.