Average Cost Of Living In London For International Students

Did you know that over 600,000 international students study in the UK and around 30% of those chose to study in London? This makes London one of the most popular destinations for overseas education. While it is an exciting choice, you may be wondering, “What about the cost of living in London?”. London is one of the most expensive places to live in the world, so to manage finances for a smooth academic experience, it’s important to understand the major expenses you might encounter while studying here. In this guide, we’ll provide a breakdown of all the major expenses an international student can face in London.

Top 5 Advantages Of Living In London

• London is home to 75% of Fortune 500 companies. Plus, over half of the UK’s top 100 companies have headquarters in London, making London an ideal place for international students to build their careers.
• London is an academic hotspot. It has more institutions than any other city in the UK, with over 40 institutions. Additionally, out of these universities, London has a total of four universities that are ranked in the top 100 World Universities. For example, Imperial College London is ranked 2nd in the world and the University College London is ranked 9th as per QS World University Rankings 2025.
• Did you know that London was awarded the most student-friendly place in the world? According to QS Best Student Cities 2025, out of the 150 cities, London was ranked 1st with an overall score of 100, beating world-class cities like Tokyo, Seoul, Munich, and Melbourne.
• London has an effective and efficient transportation system. It consists of various types of transportation services from buses, and trams, to underground tubes. The best part of the London transportation system is that it offers international students with discounted fares on London’s public transport. For example, international students can access 18+ Student Oyster Photocard and save 30% on travel cards and bus & tram passes.
• London is one of the best metropolitan cities in the world, with a high population density, hosting a concentration of businesses, and having a variety of recreational facilities like museums, theaters, parks, clubs, and pubs. This provides international students with diverse career opportunities, social engagement, and opportunities to immerse themselves in the local culture.           

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Cost Of Living In London For International Students

Here’s a breakdown of the standard components that make the cost of living in London:

Accommodation Costs in London

Accommodation takes up the major chunk of the expenses for international students. The students have a variety of accommodation services, including, private flats, university halls, and shared flats. 

Accommodation Type	Price	Comparison With Other Major Student Destinations
Shared Residence	971 pounds	Australia – AUD 800 – 1,200 (420 pounds to 630 pounds per month) US – $600 to $1,200 (470 pounds to 940 pounds per month)
Studio Flat	950 pounds – 2,800 pounds	Australia – AUD 1,200 – 2,500 (630 pounds to 1,310 pounds per month) US – $1,200 – $2,500 (940 pounds to 1,960 pounds per month)
One-bedroom flat	1,500 pounds – 3,500 pounds	Australia – AUD 1,500 – 3,000 (790 pounds to 1,580 pounds per month) US – $1,500 – $3,500 (1,170 pounds to 2,740 pounds per month)

Transportation Cost in London

Transportation Type	Price
Public Buses Monthly Pass	150 pounds – 230 pounds per month
Underground Tube	Single Journey: 5 pounds
Bicycle Rentals	Standard Cycle: 1 pound for 30 minutes
Taxis	10 pounds – 30 pounds

City	Monthly Cost	Annual Cost
London	166 pounds – 266 pounds	1,992 pounds – 3,192 pounds
New York	$127	$1,524
Sydney	AUD 160	AUD 1,920

Overall, London has a slightly higher transportation cost compared to other popular study destinations, such as Sydney and New York.

Groceries Cost in London

Groceries	Price/Week
Cost of men’s basket (Staple items + fruits & vegetables + meat + canned food)	54 pounds (April 2024 figures) – This price is for London and other cities in the UK.
Cost of women’s basket (Staple items + fruits & vegetables + meat + canned food)	50 pounds (April 2024 figures) – This price is for London and other cities in the UK.

Country	Value Of Grocery Basket/Month
USA	$210 (Approximately 162 pounds)
UK/London	200 pounds – 216 pounds

Health Insurance

International Student Health Insurance

Cost/Year

Immigration Health Surcharge: The Immigration Health Surcharge fee is paid along with the visa fee when you apply for a student visa. Paying this fee gives you access to NHS services, which is one of the leading healthcare services in the world. The health insurance is a one-time fee and covers the entire duration of the student visa. For example, if you have applied for a 2-year visa, the health insurance covers the entire two years. If your student visa expires and you apply for a new visa, you need to renew your health insurance.

776 pounds + additional charges.

Tuition Fees

Type Of Studies	Cost Of Studies	Application Fee
Undergraduate Studies	18,000 pounds – 38,000 pounds per year	20 pounds – 60 pounds
Postgraduate Studies	12,000 pounds – 40,000 pounds per year	50 pounds – 100 pounds

Remember, the application fee is excluded from the tuition fees. This is an additional cost you must pay when applying to a university in London.

Miscellaneous Expenses

In addition to these expenses, you need to have a budget for your clothing, personal care items, leisure & entertainment, and study materials. All these put together can cost from 90 pounds to 200 pounds per month.

What is the Average Cost of Living in London?

Cost Of Living In London (Annually)
Accommodation	10,800 pounds to 24,000 pounds per year
Transportation	1,992 pounds to 3,192 pounds per year
Food	2,400 pounds to 2,592 pounds per year
Health Insurance	776 pounds
Tuition Fees	15,000 pounds to 39,000 pounds per year
Miscellaneous Costs	1,080 pounds to 2,400 pounds per year
Approximate Total Cost Of Living	32,000 pounds (Lower Limit) – 71,000 pounds (Upper Limit)

Comparison – London vs Other Cities in the UK

City	Average Annual Living Costs
London	32,000 pounds – 71,000 pounds
Manchester	21,000 pounds – 41,000 pounds
Birmingham	23,000 pounds – 37,000 pounds
Oxford	38,000 pounds – 53,000 pounds

Average Salaries In London

From the data, it is clear that the cost of living in London is relatively high. To meet these expenses, you need a competitive salary, and companies in London typically offer good salaries to those with strong educational backgrounds. Here is a breakdown of the average salaries in London:

Job Role	Average Salary
Investment Banker	60,000 pounds to over 120,000 pounds
Technology Roles (Software Developer, Data Science Engineer, etc.)	50,000 pounds to over 100,000 pounds
Management Consultant	Senior management consultants get paid from 50,000 pounds to over 100,000 pounds
Legal Roles	50,000 pounds to 150,000 pounds
Chief Financial Officer (CFO)	100,000 pounds to 250,000 pounds
Pharmaceuticals/Biotech Roles	60,000 pounds to 120,000 pounds

Tips To Manage Living Costs In London

Managing living costs in London can be difficult, but with some strategic planning, it is possible. Here are some tips that will help you save money as an international student in London:

• Create a budget sheet. By creating a budget sheet you can track your daily expenses. This will help you cut costs in areas where you are spending more.
• Choose accommodation wisely. Make sure to pick places like university halls or shared spaces, which are less expensive compared to a private flat.
• Transportation in London is expensive. That said, domestic and international students are offered transportation discounts by the London Transportation Department. Make use of discounts like 18+ Student Oyster Photocard and others to minimize your transportation costs.
• Make use of student discounts. Many supermarkets and shopping centers provide discounts to students who are pursuing full-time studies in London. All you need to do is to show your student ID and get a discount.
• Shop at a budget supermarket. London has several budget supermarkets like Aldi and Lidl, which offer groceries at cheaper prices. Aldi and Lidl are known for low prices, offering a variety of groceries, including fresh produce, household items, and snacks.
• Avoid eating outside every day. Instead, cook your meals at your home. Make use of the internet to learn different recipes. This way, you can reduce significant costs associated with eating out.
• Consider part-time work. By working part-time you can earn extra income to cover your daily expenses. Many university job boards list different types of part-time jobs that are available in London.
• Manage utility bills. Look for energy-efficient appliances to cut down costs on electricity.
• Look for second-hand textbooks. There are local shops in London that sell second-hand textbooks. Otherwise, use the internet to find online marketplaces like eBay or Amazon to buy books at cheaper prices.
• Consider scholarships or grants offered by the universities in London. Scholarships can cover part or full tuition fees, minimizing the financial burden.

Conclusion

Are you considering London as your education destination? While London offers top-notch education, as an international student, you may face challenges, especially when it comes to finances. By understanding the various aspects of living costs and employing smart budgeting strategies, you can navigate these challenges effectively. This way, you can fully enjoy your studies and experience everything that London has to offer.

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