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 in zones 2–3 tops £2,000/month. Median pay is 40% above the UK as a whole, which partly (but not fully) offsets rent.
At a glance
- Typical 2-bed rent
- £2,100/mo
- Council Tax Band D
- £1,950/yr
- Median annual pay (FT)
- £42,900
- Population
- 8,900,000
Note. Rent varies wildly by borough — inner London can exceed £2,500/mo for a 2-bed; outer zones 4–6 closer to £1,500–£1,800. Council Tax Band D spans £800 (Westminster) to £2,300 (Kingston) 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 |
|---|---|---|---|
| £42,900 (local median) | £2,867 | £767 | £605 |
| £50,000 | £3,293 | £1,193 | £1,031 |
| £75,000 | £4,505 | £2,405 | £2,242 |
| £100,000 | £5,713 | £3,613 | £3,451 |
Primary industries in London
- Finance
- Technology
- Media
- Professional services
- Creative industries