Millions of people around the world feel a connection to the United Kingdom — through their ancestry or inspired by history. And the U.K. has great things for expats at every stage of life. But many images of life in the U.K. focus on luxurious country homes, glamorous London, and the British aristocracy. This can leave ordinary expats asking: what is the true cost of living in the U.K.?
Can you afford an everyday life in Britain? In the past decade, living costs have changed, especially due to the U.K. leaving the European Union. The country is still adjusting to this and tackling increases to the costs of food and utilities. As the government attempts to balance its budget, some of its famous services, such as health care and public transportation, are being cut back.
To enjoy life in Britain, it’s best to be prepared for its medium to high cost of living. This guide will tell you what you need to know to budget and choose a place to live in the U.K. All prices in British pounds have been converted to U.S. dollars. The data for the cost of living in London comes from Numbeo and U.K.- specific sources. These prices were up to date as of January 2024.
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Is the United Kingdom Expensive?
For decades, the U.K. was considered expensive because its currency, the British pound, was very strong. In the 2020s, the pound weakened, and other currencies strengthened their international exchange rates. This, and the potential for reasonable healthcare costs, has made the country a more affordable option for expats and travelers.
The U.K.’s cost of living varies based on where you are. Are you open-minded and willing to live in a cooler climate? If the answer is yes, you can find affordable places to live in the British Isles.
The Cost of Living in the UK vs. the US
As of 2024, the cost of living in the U.K. and in the U.S. is comparable in many ways. Right now, the U.K. is 28th on the Numbeo cost of living index, while the U.S. is 27th. Students from the U.S. are applying to U.K. schools for lower tuition and living costs. Working professionals in some fields say they get paid less in the U.K. – while others say they get paid much more. U.S. expats also comment that they find some consumer goods, like clothing and cosmetics, to be more expensive in the U.K.
What Are the Most Expensive and Cheapest Places to Live in the UK?
As with the U.S., the U.K. has a wide range of cost of living based on location. For every expensive place to live, there is an affordable alternative, even for big city life.
Most Expensive Cities in the U.K.
“Oh, to be in England, now that April’s there,” wrote the poet Robert Browning in 1845. A hundred and fifty years of this longing for warmth in England has made the southern part of the U.K. its most expensive place to live, starting with the city of London.
London Is the Most Expensive City in Britain
London is so expensive that it regularly features in the top 5 and 10 lists of the most expensive cities in the world. Despite this, after experiencing London, many people fall in love and consider London their home.
The city is made expensive by high rents, high real estate values, and high costs for utilities and travel. That said, it is far more expensive to rent an apartment near Buckingham Palace than to live in a London commuter suburb.
In London, students can rent or even share a room. Professionals usually find a London salary offsets the cost of living. Retirees, to make the most of their funds, may want to explore other areas of the U.K.
See Also: The Cost of Living in London, UK
Ancient, Learned, and Costly: University and Seaside Towns
Some British cities are iconic, and known around the world for their heritage and architecture. These, too, are expensive places to live in the UK.
Oxford. It’s easy to fall in love with Oxford, exploring its cobblestone streets, peeking into its antique campuses and row homes. Oxford is the U.K.’s second most costly place to live. Rents here are still 35% lower than in London. And Oxford’s overall cost of living is about 20% lower than in Boston in the U.S.
Edinburgh. Scotland’s largest city is its capital, Edinburgh. Its universities, historic neighborhoods, and famous festivals make it lively year-round. They also keep its cost of living high, as there is never a slow season in Edinburgh. Compared to another cool and cultured city, Seattle, Edinburgh is 35% less expensive.
Cambridge. Cambridge is another academic center full of intellectual charm. Its flat streets are easy to walk and cycle. Museums, bookstores, and events can fill your days. They may also empty your wallet, along with Cambridge’s high rents.
Brighton. Brighton is the U.K.’s most famous seaside resort, and its rainbow culture capital, too. Summer is especially lively, packed with vacationers and queer festivals. But its resort status and large student population make it expensive to rent or buy here. Brighton is still a bargain compared to San Francisco in the U.S.; Brighton’s cost of living is 45% lower.
Cornwall. The British county of Cornwall, a southwestern peninsula, is famous for its coastal beauty, charming villages, and expensive housing. Long-time British locals are being priced out of Cornwall as cottages are taken over as second homes or vacation rentals.
Most Affordable Cities in the U.K.
These affordable places in the U.K. all share two qualities. They are out of commuting distance from London. And they have cooler weather, with rain all year around and chilly winters. They still feature the history and charm expats often seek from U.K. life.
- Cardiff. Cardiff is the capital of Wales. Both urban and green, Cardiff overflows with history and Welsh culture. At three hours away from London, it’s too far for a daily commute, but close enough to visit regularly. Yet its cost of living is 35% less than London’s.
- Birmingham. For urban U.K. life on a budget, Birmingham is the place. Its Bull Ring shopping area, the Jewellery Quarter, and the dining “Balti Triangle” evoke London. And Birmingham’s rents are 56% lower than comparable rents in London. When you’re tired of downtown bustle, seek out the green spaces that once inspired J.R.R. Tolkien.
- Leeds. Students and mature expats alike enjoy northern Leeds. This small city strikes new residents as cozy and friendly. It has a vibrant city center and a classic U.K. football scene around its team, Leeds United.
- Sheffield. Sheffield is an affordable small city in Yorkshire County. Prosperous and polished, Sheffield has all the amenities you could want, at an excellent price. Yorkshire’s famous moors and villages are nearby for excursions.
Northern Ireland: Affordable Rent, More Costly Services
If you’re established in your career, or planning to retire abroad in the United Kingdom, consider Northern Ireland. More migrants are moving to Northern Ireland because it’s the most affordable entry point to the U.K. Compared to other parts of the U.K., Northern Ireland’s residents pay fewer local taxes like council tax and water bills. Property is less expensive to rent and to buy. Some services, like vehicle insurance and shipping, do cost more than in the U.K. mainland.
- Derry. After the show Derry Girls became a worldwide hit, Derry’s rough-edged charm has gone global. Make your own connections here in one of the U.K.’s top affordable places to live.
- Belfast. The capital of Northern Ireland is affordable, if you move there now: it is getting popular, and its rents are rising. People from Ireland are moving there too, seeking opportunities and lower rents. New residents say they’re pleasantly surprised by Belfast’s architecture, food, and after-work scene.
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The Average Cost of Living in the U.K.
Housing Costs in the UK
For U.K. renters in 2023, the average monthly cost for a rental was $1,650 outside London and $3,350 within London. London rents are impacted by location: a one-bedroom outside the city center averages $2,000, while the same one-bedroom in a central location averages $2,850. As an example of rents outside London, in Cardiff, you can rent a one-bedroom apartment for $1000 a month, or a central three-bedroom place for $2,000.
Throughout the UK, you can expect to pay about $375 monthly for utilities and $33 for internet access. In London, add $20 to $50 to your utility bill, and $10 more to pay for internet.
If you are renting, expect your rent to get higher. For the past decade, rents in the U.K. have been increasing dramatically. From 2022 to 2023, over one year, London rents increased 12%. Other cities showed rent increases from 10% to 20%.
Food and Entertainment Costs in the UK
Food costs have also risen over the past few years. However, because grocery prices are set nationally for U.K. supermarkets, basic food costs are the same whether you’re in London or elsewhere.
Entertainment outside of London is, again, comparable to costs in the U.S. or Europe. A pub lunch in Cardiff of soup, a hot sandwich, and a pint of cider will cost you $17. Afternoon tea, with a cup of Earl Grey and a scone with cream and jam, will cost you $9. A three-course dinner for two will be about $65. Going to the Cardiff cinema later will be $12. If you want to work out at a private health club, it will cost you between $13 and $35 per week.
Shopping at weekly outdoor markets in the U.K. is both an affordable way to get delicious local food and a thousand-year tradition. You’ll find baked goods, café coffees, seasonal treats, and light meals for between $1.50 and $20.
Here are what common household foods may cost you at a U.K. grocery store.
- Chicken (2 lbs): $8.30
- Eggs (12): $3.79
- Rice (2 lbs): $2.00
- Potatoes (2 lbs): $1.40
- Milk (1 quart): $1.57
- Fresh Tomatoes (2 lbs): $3.44 (seasonal)
- Bottle of wine: $10
- Bottle of British beer: $2.50
Transportation Costs in the UK
Outside of London, UK transportation costs can be reasonable. For example, in Cardiff, a normal commuter pass for public transport is $70 a month. Buying a modest new car costs between $25,000 and $35,000. Nationally, the costs to keep a car on the road range from $380 to $500 a month.
London transportation is especially expensive. A monthly transport pass can be $250 or more, based on how many zones you travel through. Taxis and app rides cost 25% to 50% more than in other areas, partly to pay for London’s congestion charges of $25 to $30 per day. Parking your car in London can cost $15 per hour. And keeping your car on the road in London averages $635 monthly. Many Londoners choose to not have a car, renting one if they need one.
The Costs of Education in the UK
Education for children and young people in the U.K. can range from free to tens of thousands of dollars per year. Yet by global standards, those fees can provide excellent value.
Primary and Secondary Schools in the UK
If you have migrated to the U.K., or you are there for work, your children are probably eligible to attend a state-funded U.K. school for free. Many parents will seek to live in good school districts so that their children can have a quality education at a free state school.
Many expats move their families, or send their children, to the U.K. for its educational opportunities. They often seek to send their children to the country’s famous private schools.
Private day schools can range from $3,000 to $45,000 annually, with additional fees and contributions. These include international schools, which are mostly based in London. A prestigious boarding school, where students live in dormitories, can cost up to $60,000 annually. Religious day and boarding schools are more affordable, with tuition from $3,000 to $15,000 a year.
University Costs in the U.K.
A U.K. university education appeals to students from around the globe. Its combination of prestige and reasonable fees makes time at a U.K. university a great investment. Both undergraduate degrees, which may take three years instead of four, and graduate degrees can be an excellent value.
Affordable locations like Leeds and Cardiff also have affordable universities, with tuition from $13,000 to $17,000 annually even for international students. Expensive cities, in turn, also have costly universities by UK standards. Foreign student tuition at the University of St. Andrews, which Prince William attended, is $27,000 annually. This may seem reasonable to many U.S. parents, compared to U.S. tuition.
Living in the U.K. as a student is the most affordable way to spend a few years there, thanks to university housing and student discounts for transportation, entertainment, and more.
Healthcare Costs in the UK
The U.K. is well known for its national healthcare system, the National Health Service (NHS). In the past, this has provided excellent health care for U.K. residents. Due to budget cuts and the COVID-19 crisis, public health in the U.K. is under stress, especially in rural areas. Often, British people are getting private health insurance and services from private health providers. Private health fees can be expensive, similar to costs in the United States.
Be aware that having a U.K. visa or passport does not guarantee that you are covered by the U.K.’s public health system. You need to be a permanent resident of the U.K. to get full coverage. Usually, to qualify for this, you need to have lived in the U.K. for five years, either working or on a U.K. Ancestry visa. Some foreigners living in the U.K., including long-term students, may need to pay an immigration health surcharge.
Most foreigners living in the U.K. have private health insurance. This can support them when they travel to other countries and if they need medical repatriation and more advanced care. It can also provide more coverage than basic NHS, including vision and dental support. U.S. expats usually choose an international medical insurance plan with comprehensive coverage.
Amidst Changing Times and Higher Costs, Expats Still Flock to the UK
Today, the U.K. is a changing place, more diverse and, thanks to shifting exchange rates, more affordable for international residents. Globally, it is still a medium to high-cost place to live. Yet for many expats, U.K. life provides excellent value, with its culture, opportunities, and universal healthcare. For a gentler way of life, you can be confident investing in life in the U.K.
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