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London has a notorious reputation for its high cost of living, compared to other UK cities and European capitals.
A 2023 study by ECA International has shown that London is the fourth most expensive city in the world due to high housing costs (whether buying or renting) and the cost of everyday expenses.
The ongoing cost-of-living crisis and steep inflation rate have further ‘solidified’ London’s position in this list.
Many Londoners are finding it challenging to make ends meet with their income. Some also have to resort to employed loans or other alternatives simply to make ends meet.
If you’re considering moving to London and are wondering what the average Londoner spends in a day, this article will answer all your questions.
While the exact cost of living in a city like London will depend on individual lifestyles and preferences, you’ll still get an idea of what your life might look like. Let’s get calculating!
Average Cost of Living
In 2024, the average monthly living cost for a single person in London was around £4,722, while a family could expect to spend over £6,700, which is roughly £1,500 more than the UK average.
The biggest contributor to this high cost is rental prices, which have dramatically increased over time and are now nearly double the national average.
Let’s take a more detailed view of the different overhead expenses of living in London and some tips on how to manage your finances.
1. Housing
The high rental cost in London often deters people from living in the capital. The average rent of a one-bedroom apartment in the city is £2,000 a month, which roughly equates to £66 a day. Monthly rent can go as high as over £4000 in a more posh area.
If you plan to own a property in London, you’ll be paying a significantly steeper mortgage than the UK average. This will have a direct impact on the monthly repayment instalments.
With the ongoing cost-of-living crisis, borrowing costs have risen, making it even more difficult and expensive to own a property.
Your mortgage terms will also be influenced by the deposit amount and your personal credit score.
2. Utilities
Utilities further add to your total expenses. Heating, electricity, gas, and water are some of the most basic necessities.
A two-person household may spend upto £165 on utilities, whereas a single person may spend upto £136, which comes to about £4.5 to £5.5 a day.
Considering how much of your daily expenses go towards utilities, you can reduce your monthly average if you can find ways to cut back.
For example, take shorter showers instead of taking baths, switch to LED lamps, insulate your doors and windows to prevent heat loss, bleed and clean radiators and fix any leaking taps or faucets.
This will not only save you money on your bills, but it will also help the environment.
3. Transportation
Most Londoners rely on public transport, and for good reason. With heavy traffic, limited parking, and the high cost of owning a vehicle, having a personal car in the city can be more stressful than you’d expect.
For those who do own a car, fuel prices add up—petrol averages £1.42 per litre, while diesel is around £1.47 per litre.
Add to that the cost of insurance, maintenance, parking, and congestion charges, and it’s estimated that a Londoner pays roughly £1.39 for every minute they spend driving.
In contrast, travelling via public transport will cost you an average of £166 per month, which is about £5.5 a day. Those using taxis or ride-sharing cabs like Uber spend £10-£20 for a single trip.
4. Food and Drinks
If you stick to home-cooked meals, your daily spend on groceries and staples in London typically falls between £7 and £10.
Takeout lunches can bump that cost by an extra £2 to £3 per day. What’s more, even a simple cup of coffee can set you back £4, making small indulgences add up quickly.
If you want to eat nutritious meals within a budget, cook at home rather than ordering takeout.
Buying staples in larger quantities, choosing supermarket brands and reducing the consumption of animal proteins or opting for inferior cuts of meat can help you save on your monthly grocery expenses.
Miscellaneous Expenses
Miscellaneous expenses like entertainment, leisure activities, clothing, gym memberships, and streaming services can quietly add up over the month.
For example, streaming platforms like Netflix can cost between £0.50 and £1.50 per day, while a gym membership might come to around £2 a day.
The good news is that these costs are often the easiest to cut back on, especially if you’re watching your budget or trying to stretch your salary to the end of the month.
Simple steps like cancelling a streaming service you rarely use or sharing subscriptions with a roommate or friend can make a difference.
If you’re not using your gym membership regularly, consider pausing or cancelling it and switching to free home workouts or running in the park—a great way to stay fit without the monthly fee.
To Sum Up
It’s safe to say that a regular person living in London will spend £90 to £100 a month. This can fluctuate depending on your lifestyle choices and the area you live in.
This expenditure has risen significantly in the last decade, putting immense pressure on people’s income and savings.
However, making small adjustments in your daily expenses will help you save money despite the trying times.
Whether you are planning to move to London or simply want to live more modestly, we hope this guide will help.
