Cost of living · 2026/27
London: Cost of Living 2026/27
The most expensive UK city on almost every cost metric. Rent dominates - a typical 2-bed averages around £2,200/month. Median full-time pay is roughly 25% above the UK-wide median, which partly (but not fully) offsets rent.
At a glance
- Typical 2-bed rent
- £2,200/mo
- Council Tax Band D
- £2,068/yr
- Median annual pay (FT)
- £49,816
- Population
- 8,900,000
Note. Rent varies wildly by borough - inner London can far exceed the £2,200 average for a 2-bed; outer zones are materially cheaper. The headline Band D figure is the London-area average for 2026/27 (£2,068 including the GLA precept); the all-in area Band D spans roughly £1,030 (Wandsworth) to £2,610 (Kingston upon Thames) depending on borough.
Take-home after rent in London
Monthly take-home for common UK salaries, using England tax rates (our salary calculator), then subtracting typical rent and monthly council tax / rates.
| Gross | Take-home /mo | After rent | After rent + council tax |
|---|---|---|---|
| £49,816 (local median) | £3,282 | £1,082 | £910 |
| £50,000 | £3,293 | £1,093 | £921 |
| £75,000 | £4,505 | £2,305 | £2,132 |
| £100,000 | £5,713 | £3,513 | £3,341 |
Primary industries in London
- Finance
- Technology
- Media
- Professional services
- Creative industries