Paying for rent, groceries, and utilities in a foreign currency can be a bit disorienting when you first move to a new country. Add in the difference in costs from city to town to village, and it can quickly become difficult to manage your budget.

At Remitly, we understand the challenges that come with moving abroad. So we’ve created this UK cost of living guide to help you make smarter financial decisions right from the get-go.

How we calculate living expenses in the United Kingdom

To give you an accurate picture of living expenses in the United Kingdom, we’ve drawn on data from trusted crowd-sourced platforms like Numbeo and Expatistan. 

Our tables give you regional cost comparisons in the UK, with average cost estimates for items in London—the UK’s most expensive city—Manchester, Birmingham, and other areas. 

For the “other” areas, we chose to aggregate costs from Nottingham and Leicester. These are smaller cities that offer a more affordable lifestyle, as well as adequate job opportunities, markets for small businesses, good schools, and other attractive qualities.

UK housing and utility costs

In the UK, most people in urban areas live in flats (apartments) while freestanding and semi-detached houses are more common in suburban areas and smaller towns.

Rent varies quite drastically from place to place, but you can generally expect properties in the city center to be more expensive than those a little further away from the hustle and bustle.

Comparison of rent and property prices

Location	Monthly rent for a one-bedroom flat in the city center	Monthly rent for a one-bedroom flat outside the city center	Monthly rent for a three-bedroom flat in the city center	Monthly rent for a three-bedroom flat outside the city center	Property purchase price, per square meter, in the city center	Property purchase price, per square meter, outside the city center
Average	£1,041.22	£843.86	£1,723.16	£1,365.60	£4,666.65	£3,736.35
London	£2,218.66	£1,639.66	£4,133.78	£2,721.63	£15,707.25	£8,399.01
Manchester	£1,186.46	£935.00	£1,960.00	£1,521.56	£4,241.98	£2,974.59
Birmingham	£985.29	£793.18	£1,681.25	£1,242.50	£3,900.00	£3,000.00
Other	£895.62	£696.88	£1,325.00	£1,029.17	£8,072.93	£4,461.12

In addition to UK housing prices in 2025, it’s a good idea to have an understanding of the cost of basic utilities, including electricity, heating, water, sewage, and rubbish collection. As with rent, what you pay for these will vary depending on where you live.

You’ll also want to consider the cost of other amenities, like internet and mobile phone plans, although the monthly fees for these generally don’t change by location.

Comparison of utility and internet plans

Location	Basic utilities (85m2 flat)	Internet (60 Mbps+, unlimited data)	Mobile plan (10 GB+ Data)
Average	£237.73	£31.24	£12.89
London	£233.10	£31.46	£15.15
Manchester	£219.49	£31.65	£16.82
Birmingham	£212.10	£29.00	£16.33
Other	£187.31	£29.92	£12.21

Transportation costs

One of the great things about living in the UK is how easy it is to get around—even if you don’t have a car. 

London has the famous Underground and an extensive bus and overground rail network, while other cities and towns rely more heavily on buses and regional trains. 

Public transport is generally the more affordable option when you’re living in the city. Although a monthly pass in London can cost nearly £200, owning a car comes with insurance, taxes, maintenance, and fuel costs. However, if you’re in a rural area, you might need a car because public transport options can be limited.

Whichever mode you choose, keep in mind that fuel costs are steadily rising, which means that you’ll likely be paying more to buy a public transport ticket or fill up your car this time next year than you are now.

Comparison of transport options

Location	Monthly public transport pass	Taxi (per kilometer)	Gasoline (1 liter)	Volkswagen Golf (new)
Average	£88.50	£1.78	£1.43	£27,890.00
London	£183.04	£2.60	£1.44	£27,890.00
Manchester	£90.00	£2.30	£1.42	£27,890.00
Birmingham	£62.00	£1.19	£1.43	£27,890.00
Other	£70.00	£1.24	£1.42	£27,890.00

Grocery and dining expenses

Although they can feel high compared to many countries, grocery costs in the UK are moderate by global standards.

When you’re shopping, you’ll likely find that fresh produce and meat are more expensive than pre-packaged or frozen foods. Prices at large supermarkets are also typically lower than those at smaller local shops. You’ll likely also get a better deal on fruits, vegetables, and specialty items at weekly markets.

Comparison of basic groceries

Location	Loaf of white bread	Eggs (1 dozen)	Milk (1 liter)	Bottle of wine (mid-range)
Average	£1.23	£2.97	£1.24	£8.00
London	£1.61	£3.59	£1.27	£9.00
Manchester	£1.29	£2.94	£1.21	£8.00
Birmingham	£1.21	£2.72	£1.25	£9.00
Other	£1.11	£3.18	£1.31	£10.00

Eating out in the UK is more expensive than in many parts of Europe and Asia, but cheaper than the US.

Casual dining and takeaway restaurants are common. Whether you’re looking to have coffee at a café, order a curry at a local diner, or get a meal at a high-street chain, you’ll be spoiled for choice.

Sit-down restaurants, particularly in city centers and tourist areas, can be quite expensive. If you’re planning on eating out, lunch is the best option as evening meals tend to be pricier.

Comparison of dining out

Location	Basic lunchtime menu in the city center	Combo meal (fast food restaurant)	Three-course meal for two (mid-range)	Cappuccino	Pint of local beer
Average	£15.00	£7.50	£65.00	£3.41	£5.00
London	£20.00	£8.00	£80.00	£3.77	£6.00
Manchester	£15.00	£8.00	£70.00	£3.69	£5.00
Birmingham	£15.00	£7.00	£60.00	£3.36	£5.00
Other	£15.00	£8.00	£50.00	£3.38	£4.50

Healthcare costs

The UK’s healthcare system is a big perk of living in the country. When you’re moving, you’ll pay the Immigration Health Surcharge (IHS) as part of your visa application. This will give you access to the National Health Service (NHS). 

The NHS provides publicly funded healthcare to all UK residents, including most immigrants and international students. Visits to the GP (general practitioner), emergency treatments, and hospital care are generally free, but you’ll have to pay for prescriptions, dental care, and optometry.

If you have a chronic illness, it’s important to check which of your medications and treatments are covered by the NHS, as not everything is fully subsidized.

You can also opt for private healthcare. This will give you access to certain specialists and may reduce the amount of time you need to wait to see a doctor when you’re sick, but it’s much more expensive than using the NHS.

Education and childcare

The UK offers a mix of state-funded and private (a bit confusingly called “public”) schools. State schools are free to UK citizens and residents, while private schools are pay-to-play. 

Childcare costs for children who aren’t yet school-going age (the year after your child turns four) vary quite significantly depending on where you live, but there is some relief for working parents. They can get up to 30 hours of free childcare support per month for children aged nine months to four years old.

Comparison of education options

Location	State school	Private pre-school (full Day, monthly)	Private primary school (yearly)
Average	Free	£1,261.00	£15,202.61
London	Free	£1,804.45	£20,965.22
Manchester	Free	£1,447.67	£15,500.00
Birmingham	Free	£1,187.90	£14,166.67
Other	Free	£1,283.33	£17,250.00

For higher education, fees vary depending on your course, level of study, and where you’re studying in the UK. Home students (UK residents) pay up to £9,535 per year for undergraduate degrees, while tuition fees for international students range from £11,400 to £38,000 per year.

Regional cost comparisons in the UK

The cost of living in the UK varies significantly by region. London is by far the most expensive place to live, with higher rent, transport, and entertainment costs. That said, it also offers the most job opportunities, highest salaries, and best culture.

Other major cities—like Manchester and Birmingham in England, and Edinburgh in Scotland—are generally more affordable while still offering great infrastructure and employment options.

Smaller cities (e.g. Nottingham and Leicester) strike a good balance between urban and rural, with more reasonable housing costs and a slower pace of life without sacrificing access to services, schools, and job prospects.

Rural areas and small towns are also an option for immigrants moving to the UK. They tend to be the most affordable overall, but fewer job opportunities mean that they may not be the best option if you’ve moved to the UK to improve your financial situation.

Affordable living in the UK: practical tips for managing living costs

The majority of your budget will likely go to putting food on the table and keeping the lights on. Groceries and utilities in England and the rest of the UK are pricey, but fortunately, there are some easy ways to keep your budget in check:

• Housing: Consider sharing a flat or living outside of city centers to cut rent costs
• Utilities: Compare rates from different utility providers and switch if you find one that offers better prices
• Groceries: Shop at budget supermarkets (e.g. Aldi or Lidl) and buy in bulk, or visit local markets to buy fresh produce
• Dining out: Save trips to restaurants for special occasions and opt to go for lunch, which is usually cheaper
• Taxes and grants: Apply for council tax reductions or energy-savings grants if you’re eligible

When it comes to entertainment, you can take advantage of free community resources like public libraries, city parks, and cultural events. These are great options for keeping busy without draining your budget.

Future cost of living trends

To understand what it might cost to live in the UK in the future, you need to understand inflation. In the UK, inflation is typically measured by the Consumer Price Index (CPI), which tracks a representative “basket” of items like food, transport, and household utilities.

When inflation rises, your money doesn’t stretch as far as it used to because things like your grocery bill, energy costs, and rent are all more expensive. Although it’s come down a lot since the end of 2022, inflation in the UK is still quite high.

Fortunately, the Office for Budget Responsibility projects that inflation in the UK will peak at 3.8% in July, beginning a gradual return to the 2% target by early 2027.

That said, overall household costs will likely remain high in the near future. For example, while energy prices are set to drop, water bills are expected to go up by 36% in the next five years. Plus, with ever-increasing demand, rent increases don’t look to be slowing any time soon.

Know your numbers

Understanding the cost of living in the UK can feel overwhelming at first. But knowing what to expect when it comes to regular expenses like housing, transport, and groceries can help you to plan more confidently.

Whether you’re relocating or you’ve already settled in, the tips above make budgeting for UK residents easier so that you can make the most of your money every month.

FAQs

What is the average cost of living in the UK?

In 2025, the average UK household spends approximately £567.70 per week on housing, food, transport, and utilities. A single person living in London should expect to spend around £1,045 on expenses per month, excluding rent.

How much money do you need to live comfortably in the UK?

How much money you need to live comfortably in the UK will depend on where you’re living and what you consider to be comfortable. In London, a single person who lives in shared housing would need upwards of £2,750 per month. Families with two children need around £88,000 per year to get by.

Is £2,500 enough to live in London?

You may be able to live in London on £2,500 per month, but you would need to be very wise with your budget. You’d need to live in shared housing and minimize discretionary spending for this to be manageable.