If you’re gearing up for a move to London, it’s wise to consider what your bank balance might look like once you’re settled. Now, I won’t sugarcoat it – London’s not the cheapest city you could choose for your family. Things can add up quickly here, from the rent or mortgage on your new home to the price of hopping on a bus.
However, that’s before we even consider the weekly food shop, childcare fees if you’ve got a toddler, or school costs as they grow. Oh, and don’t forget to set aside a little extra for those precious family days out!
In this post, I will lay out the nitty-gritty of what you need to budget for housing, transportation, groceries, healthcare, and even those all-important leisure activities that make the grind worthwhile. So, pull up a chair, and let’s get down to brass tacks about what it costs for you and your family to live it up (or at least get by) in good old London town.
Housing Costs in London
Recently, London was dubbed the “capital of capitals“, ranking as the best city in the world for nine consecutive years. Interest in London has always been high, with many young people worldwide wanting to move here and establish a life. But London is well aware of its appeal, and the cost of living there reflects that.
Renting in London can be quite an eye-opener if you’re new to the city’s housing market. You’ll quickly find that your money doesn’t stretch as far as you might be used to, especially when looking for a place with enough room for a growing family. Rent prices can vary wildly depending on the borough, and here are the average monthly rent prices you can expect:
| Borough | Average Monthly Rent (Studio) | Average Monthly Rent(1 Bedroom) | Average Monthly Rent(2 Bedrooms) |
| Barking & Dagenham | £1,150 | £1,500 | £1,850 |
| Barnet | £1,300 | £1,750 | £2,200 |
| Bexley | £1,250 | £1,650 | £2,000 |
| Brent | £1,350 | £1,800 | £2,300 |
| Bromley | £1,280 | £1,700 | £2,100 |
| Camden | £1,450 | £2,050 | £2,900 |
| City of London | £1,800 | £2,600 | £4,000 |
| Croydon | £1,200 | £1,600 | £1,900 |
| Ealing | £1,380 | £1,850 | £2,350 |
| Enfield | £1,200 | £1,600 | £1,900 |
| Greenwich | £1,350 | £1,800 | £2,250 |
| Hackney | £1,300 | £1,750 | £2,150 |
| Hammersmith & Fulham | £1,400 | £1,900 | £2,700 |
| Haringey | £1,320 | £1,770 | £2,200 |
| Harrow | £1,250 | £1,650 | £2,000 |
| Havering | £1,200 | £1,550 | £1,900 |
| Hillingdon | £1,220 | £1,620 | £1,950 |
| Hounslow | £1,270 | £1,700 | £2,050 |
| Islington | £1,420 | £2,000 | £2,850 |
| Kensington & Chelsea | £1,550 | £2,250 | £3,300 |
| Kingston upon Thames | £1,400 | £1,900 | £2,400 |
| Lambeth | £1,300 | £1,750 | £2,150 |
| Lewisham | £1,250 | £1,650 | £2,000 |
| Merton | £1,230 | £1,630 | £1,980 |
| Newham | £1,220 | £1,600 | £1,900 |
| Redbridge | £1,270 | £1,700 | £2,050 |
| Richmond upon Thames | £1,450 | £2,000 | £2,500 |
| Southwark | £1,280 | £1,750 | £2,100 |
| Sutton | £1,230 | £1,650 | £1,950 |
| Tower Hamlets | £1,300 | £1,700 | £2,100 |
| Waltham Forest | £1,250 | £1,650 | £2,000 |
| Wandsworth | £1,350 | £1,850 | £2,300 |
| Westminster | £1,650 | £2,300 | £3,400 |
To find a family-friendly neighbourhood, consider areas like Greenwich, with its ample parks and good schools, or perhaps Wimbledon, with its community feel and quick train links to central London. Remember, checking out the online rent maps can give you a head start before you even set foot in a potential new neighbourhood.
Utilities
While sorting out your housing, don’t forget all your other household expenses that come knocking. Your monthly costs for electricity, water, and internet can vary, but on average, you’re looking at around £70 for electricity and gas, about £30 for water, and internet packages start from £30 and go up depending on your speed requirements. Here’s a glance at what a family of four might expect to pay each month:
| Utility | Average Cost Per Month |
| Electricity | £64.39 |
| Gas | £88.46 |
| Water | £35 |
| Internet | £30 |
| Average Monthly Total | £217.85 |
Public Transport
Once you’ve settled in London, you’ll also have to figure out how to get around. Londoners are known for their love of the Tube, yet the most used public transport in the city is the famous red double-deckers. The prices here also vary, depending on which zone you’re travelling to and how you plan on getting there. You’ll be looking at a fare of about £1.55 for a single bus ride and anywhere from £2.40 to £5.50 for the Tube. If you want a more detailed breakdown, we have you covered:
| Travel Type | Average Cost per Ride | Average Daily/Weekly/Monthly Travelcard Cost |
| Bus | £1.55 (single fare) | £6.00 (Day Pass) |
| Tube | £2.50 (short journey)£3.00 (medium journey)£5.50 (long journey) | £7.70 (Day Travelcard, Zones 1-2)£14.50 (Weekly Travelcard, Zones 1-2)£103.70 (Monthly Travelcard, Zones 1-2) |
| DLR (Docklands Light Railway) | £2.40 (single fare) | £7.70 (Day Travelcard, Zones 1-3)£14.50 (Weekly Travelcard, Zones 1-3)£103.70 (Monthly Travelcard, Zones 1-3) |
| Tramlink | £2.80 (single fare) | £7.70 (Day Travelcard, Zones 3-4)£14.50 (Weekly Travelcard, Zones 3-4)£103.70 (Monthly Travelcard, Zones 3-4) |
If you plan to use these options regularly, you’ll want to get your hands on an Oyster card or a contactless payment card because they can make things cheaper and easier. With an Oyster card, you can load it up with credit and pay as you go, capping your daily travel costs so you won’t spend more than necessary.
For families, there are perks to watch out for, like travel cards that can save you money if you’re all travelling together. Don’t forget that children under 11 ride free on buses and trams. Teens aged 11 to 15 can get an Oyster photocard for free travel on buses and trams and half-price on the Tube. So, don’t miss out on those savings because every penny counts.
Owning a Car
If you want to buy and own a car in London, you must brace yourself for significant costs. It’s not just the price of the car itself – it’s the whole package. You’re looking at insurance, which can be steep and varies widely, but expect to pay around £500-£1,000 per year, depending on your car and driving history.
Then there’s the vehicle tax, ranging from £0 for some eco-friendly models to over £500 for larger, less efficient ones. Add to that the cost of fuel, which is hovering around £1.30 per litre at the moment, and it adds up quickly, especially if you’re driving every day. And don’t get me started on parking – in some parts of the city, you could be shelling out £4.90 per hour if you can even find a spot.
On average, owning a car in London will cost you:
| Expense | Average Annual Cost |
| Fuel | £1,000 – £2,000 |
| Insurance | £500 – £2000 |
| Road tax | £150 – £500 |
| Regular maintenance and repairs | £500 – £1,000 |
| Parking | £500 – £2,000 |
| Optional charges | |
| Congestion charge | Up to £1,500 |
| ULEZ charge | Up to £8,000 |
| Total per year (excluding optional charges) | £2650 – £7000 |
Average Cost of Groceries
Another critical cost you can’t forget is the weekly food bill. We have to eat, so we must spend money on groceries every week. Luckily, London has many shops, from upscale supermarkets to bargain grocers, so you can compare prices. Still, the average market prices for the most essential produce look like this:
| Item | Average Price | Unit Size |
| Bread (white sliced) | £1.21 | 800g loaf |
| Milk (semi-skimmed, 1L) | £1.06 | 1L carton |
| Eggs | £2.34 | 12 pack |
| White rice (basmati) | £1.81 | 1kg bag |
| Pasta (penne) | £1.20 | 500g pack |
| Potatoes (baking) | £1.60 | 5kg bag |
| Tomatoes (on the vine) | £1.50 | 500g punnet |
| Apples (Golden Delicious) | £1.80 | 1kg bag |
| Bananas | £1.10 | 1kg bunch |
| Chicken breast (skinless, boneless) | £6.00 | 1kg pack |
| Minced beef (lean) | £5.50 | 500g pack |
| Cheese (cheddar) | £4.00 | 400g block |
| Cucumbers (English) | £1.00 | Each |
| Cabbage (green) | £0.75 | Medium head |
| Flour (plain white) | £1.00 | 1kg bag |
| Carrots (bunch) | £0.75 | Bunch |
| Broccoli (head) | £1.50 | Medium head |
For example, if you’re a family of four, your grocery bill can vary greatly depending on where you shop and what you buy, but on average, you’re looking at around £129 for the weekly grocery shop.
This can be quite a shock if you’re not used to city prices, but don’t worry – there are ways to keep costs down. First, consider the supermarkets you choose. Budget-friendly options like Aldi and Lidl offer great value for money without compromising quality. If you’re partial to specific brands, larger chains such as Tesco or Sainsbury’s often have competitive deals.
Smart shopping can make all the difference to your wallet. Keep an eye out for the yellow stickers on products nearing their sell-by date – these discounts can be substantial. Also, embrace the loyalty schemes on offer. Signing up for a Tesco Clubcard or a Sainsbury’s Nectar card can lead to substantial savings over time, with points accumulating every time you shop that can be redeemed against future purchases.
And remember, open markets can be your friend. Places like Brixton Market or Borough Market offer fresh produce at lower prices than you might find in big-name stores, especially if you swing by just before closing time when many sellers reduce their prices.
Dining Out
Now, when it comes to treating the family to a meal out, with almost 15,000 restaurants, London’s dining scene can be daunting, especially when you look at the price tags attached to some of the menus. However, it is possible to enjoy a meal without breaking the bank.
On average, for a family of four, you might spend anywhere from £40 to £70 for a decent meal, excluding drinks and tips. Now, tips are not mandatory, but leaving a 10%-15% tip is customary if you’re satisfied with the service.
To keep costs reasonable while dining out, it’s worth looking out for family-friendly restaurants that offer ‘kids eat free’ deals or set menus that provide a more affordable dining experience. Chain restaurants like Pizza Express or Nando’s can be reliable choices, offering consistent quality at a fair price, and they often have dedicated kids’ menus that won’t leave you feeling out of pocket.
Don’t overlook local family-run eateries, as they frequently offer a warm atmosphere, hearty portions, and gentle prices, giving you a real taste of London’s diverse food scene.
Health Insurance
Nothing is more important than the health of your loved ones, so getting medical coverage should be at the top of your priority list. In London, private health insurance prices vary widely, but on average, you might be looking at around £1,200 to £2,000 per year for an individual policy.
If you’re after a family plan to cover you, your partner, and the little ones, it could set you back anywhere from £3,000 to £4,500 annually. These figures can jump if you opt for more comprehensive coverage or if any of you have pre-existing conditions.
Now, remember that the UK has the NHS, which provides free healthcare at the point of use, so you don’t have to get private insurance. But if you’re after shorter wait times and the freedom to choose your own specialists, private insurance can be a big help. When you’re choosing a plan, make sure you look at what’s included. Some policies might offer extras like dental and optical care, which can be a lifesaver when your little one needs braces, or you notice that you’re squinting at road signs more than you used to.
The trick is to shop around. Don’t just snap up the first policy you find. Compare quotes and read the fine print. And remember, you can often tailor plans to suit your family’s needs, which can help manage costs. It’s all about finding that balance between what you can afford and the level of comfort you want regarding your family’s health care.
Leisure Activities
Now that we’ve gone over the necessities like transport and food let’s focus on how much it will cost you to have a little fun with the fam. While educational and engaging, museums can have a hefty price tag, especially for family tickets. The good news is that many of London’s most famous museums, like the Natural History and Science Museum, won’t cost you a penny for general admission. However, special exhibitions might require a separate fee.
Cinemas, on the other hand, can be a bit pricey, especially if you’re eyeing the latest blockbuster in a central location. Here is a simple breakdown of the cost of a family night out at the cinema:
| Cinema Expenses | Average Prices |
| Adults Tickets | £10-£15 |
| Kids Tickets | £7-£10 |
| Drinks | £3-£6 |
| Large Popcorn | £7-£9 |
| Snacks | £2-£5 |
| Total | £29 – £45 (per person) |
Going to a matinee screening can save you a few quid, though. And if you’re keen on catching a West End show, look out for family discounts or try your luck with last-minute ticket apps that offer substantial savings.
For a dose of history without the hefty price tag, many of London’s historical sites offer reduced family tickets or free entry for kids. The Tower of London, for instance, might seem a bit steep at first glance, but remember, your brood can gawp at the Crown Jewels and meet the Beefeaters without you having to fork out extra for them.
Amusement parks, on the other hand, can be pricier. Places like Chessington World of Adventures or Madam Tussauds are brilliant for a treat, but look out for online deals or off-peak times to save a few quid.
Some of the average prices you can expect when planning a fun day out are as follows.
| Activity | Average Price per Person | Estimated Family Cost (4 people) |
| Madame Tussauds | £32 (adult)£26 (child) | £104-£128 |
| Cinema Tickets | £10-£15 (adult)£7-£10 (child) | £200-£400+ |
| Chessington World of Adventures | £44 (adult)£34 (child) | £176-£136 |
| London Eye | £39 (adult)£28 (child) | £112-£156 |
| West End Show | £50-£100+(per ticket) | £200-£400+ |
The Final Expense
The cost of living in London can be a challenge, but it’s certainly manageable with some planning. Remember, you’re not alone – a whole community of families have been in your shoes and are ready to offer advice. Be mindful of your spending, but also take advantage of the countless free activities the city offers that can enrich family life here.
Most importantly, don’t let finances overshadow the incredible experience of living in one of the world’s most vibrant cities. With the right approach, you and your family can thrive in London, enjoying all the diversity and culture it offers while staying on top of your finances.
