Is London expensive also for Londoners?

Question

I've heard comments that London is expensive and else, but if you earn in pounds would it be ok, or still expensive? Are you able to cover all your expenses and save a little bit? (let's say 500 pounds per month or else?)

Answer 1

In comparison to the rest of the UK London is an expensive place. The biggest difference is in house prices. In the north of England you could buy a very nice house for £250,000 ($500,000) but in London you'd get a small flat. If renting then you'd probably pay double in London than in other places.

Wages are higher too but not by that much - perhaps about 10%. This has a knock on effect in that the price of goods and services tends to be that bit higher.

I've lived both in and outside London and apart from property prices you don't really notice that much difference. The main differences are in the people, way of life and living standards.

Because London and some of the immediate surroundings top the property price list the people there have less disposable income and saving is difficult. North Yorkshire has the highest disposable income in the UK so if you want to save money that's the place to be - wages are above the national average but living costs are below.

Throughout the UK, the average weekly wage before tax is just over £500 ($1000) a week. To live in London earning an average wage and saving £500 a month would be quite hard, you'd probably need to share rented accommodation and be quite frugal with your money.

Answer 2

Here some numbers to contemplate...

£500/pcm (per calendar month) gets you a double bedroom in a two bedroom house-share in most decent areas outside of zone 2. Look more at £700 for anywhere inside zone 2.

Bills (gas, elec, council tax) will be about £200pcm for the house. These are often split between occupants.

Travel card for zones 1-3 is £105pcm.

Food and sundries generaly costs about £40pw for a single person if you're living frugally. Add on an additional £50pcm for going out.

Tack on another £200 for clothing and other things that come up.

So, you're looking at about £1100pcm to have a decent time. That's about £20,000 a year before tax. Which is about £14 an hour if you consider not working, 25 days a year due to leave, any public holidays, 15 days due to no work, 10 days due to sickness and a few others for good measure - i.e. 200 days a year.

Rent can come down a LOT (like to around £50pw) if you are willing to share a house with more people or live further out of London or in less upmarket areas.

Anything above that and you're saving. Adding on an additional £250pcm towards holidays and the like, then you're really saving.

Answer 3

Even earning an income in pounds, Londoners still find it an expensive place to live. It’s a tradeoff between the city lifestyle and saving. I’ve lived in London for approx. ₤500 a month but wasn’t able to save. There are definitely ways to be frugal, although admittedly difficult.

Shared accommodation helps to cut costs a bit. Nevertheless, location is key. Steer clear of the price locals such as Kingsington, Nottinghill, and even the increasingly so Camden. The greater the commute likely the less the rent, but note the cost to travel zone to zone. Sometimes the tradeoff isn’t always worth it. I’ve lived in Shepherd’s Bush, Acton, and Bayswater… nothing extraordinary but was able to spend some hard earned money on fun! For travel in the city Oyster cards are the best bet… travelcards may reduce your costs as well.

The museums are free which is a great and cheap way to get cultured. Also, keep an eye open for music gigs, karaoke, and quiz nights in pubs and bars. Eating out is a costly event. But groceries also add up… I always browse the discount bins for a cheap dinner. Wetherspoon’s is a prevalent chain with the best drink prices and food deals. Going to the cinema to see a film is expensive. However, if you aren’t too picky about the showing, the Prince Charles Theater as ₤1 Fridays for entrance, snacks, etc.

www.gumtree.com
www.craigslist.org
www.m25xchange.com

Are good websites if looking for deals.

When in London, just keep in mind what you really need in life. Personally, I’d rather spend it on a night out than on heat. It’s such a fabulous city… spend spend spend!

Answer 4

Houses in London are extremely expensive no matter what area, which is why some people live in poverty. I live in Bow, in a nice house and with 2 nice cars. I have one child, 3 cats and a dog. I don't want to disclose how much I make but I earn a lot through my beauty business, I am self made. So many people from the "ghetto"s of London do expect things to be handed to them. I could spend up to £200 in a normal day, with nothing to show for it, living where I do, and having to travel into north london for my shop

Answer 5

london is even expensive for millionaires

it's getting ridiculous

£500 wouldn't get you any decent accommodation in zones 1 - 4.....that's a low wage, you want to aim for minimum £900/month)

Answer 6

yes london is expensive even for most londoners

Answer 7

Yes. And its getting worse.