London is regularly listed as one of the top cities to live in the world, with good work opportunities, excellent entertainment options and a diverse culture. Beyond the iconic tourist attractions, London offers lifestyle opportunities that are hard to match anywhere else in the world.
However, living in such a place will also have drawbacks and the cost of living in London is undoubtedly one of the biggest downsides.
England’s capital city may be smaller in physical size compared to some global cities but there is a vast population supported by excellent transport links and a huge range of neighbourhoods to choose from.
For those looking to enjoy the limitless entertainment in central London, finding accommodation in central London can be very expensive but further out, more affordable options are available that will still allow easy access into central London via the Tube or train network.
If you are moving to London on a budget, these are some tips for saving money and some of the costs you simply won’t be able to avoid:
Savings Tips for Accommodation Costs
The average rent in London in 2026 is £2,317 per month, much higher than the England average of around £1,500. How much you pay in rent will depend on the type of property you live in and the location. If you rent a studio apartment in Barking and Dagenham, for example, you can find options for under £1,000 per month.
Many people living in London choose to live in shared accommodation to keep costs lower. You can use sites such as SpareRoom to find a shared house for considerably less than renting alone. This type of accommodation can also be a way to meet new people in London, with flatmates that will hopefully become friends.
When you are looking for accommodation in London, finding somewhere further out from central London that is close to a Tube or train station will help you to save on rent without compromising the London lifestyle.
To help ensure that you do not miss out on good rental opportunities, make sure that you have all the necessary documents ready, such as previous landlord references and employer references. If you are moving to London from abroad, getting a letter of attestation for documents will help your case as landlords will know that your document is authentic. The rental market in London moves quickly and waiting for documents could mean missing out on your preferred accommodation.
Transport Options and Discounts
Getting around in London is not cheap but one of the major benefits of living here is that you can easily travel everywhere without the need for a car. Professionals and students living in London often save on the costs of running a car by relying on public transport.
For regular travellers, getting a Travelcard season ticket can help to save money on travelling or you can pay as you go, using either your contactless card or an Oyster card. Students can apply for a 18+ Student Oyster card which provides a 30% discount on Travelcards that are available for 7 days, one month or one year.
Low Cost Furniture
Buying new furniture is often one of the biggest expenses of setting up in a new location, so you might want to consider renting a fully furnished property to save on these upfront costs. Alternatively, charity shops often have good quality used furniture you can buy at a much lower price than new items.
Budget-Friendly Interests and Entertainment
London is renowned for its rich cultural experiences but seeing a show on the West End or dining out at restaurants will be expensive. However, there are lots of other ways to enjoy the highlights of London for free or at low cost:
Parks
London is home to some amazing parks like Hampstead Heath and Primrose Hill which are free to use. You can take part in Parkrun events for free if you are looking to meet new people or get active. Sometimes free events are held in parks, including cultural festivals and music events.
Culture
There are also lots of free museums and galleries, including:
- British Museum
- National Gallery
- Tate Modern
- Natural History Museum
- Science Museum
Instead of buying tickets for large productions on the West End, you can find cheaper tickets for smaller venues and some theatres have standing tickets at discounted prices.
Dining
In terms of restaurants, fine dining is one of the wonderful aspects of London life but the cuisine offering is so broad that you can eat out at reasonable prices. The food markets like Borough Market have great street food stalls and a fun atmosphere.
Conclusion – Expect a high cost of living in London but there are definitely ways that you can minimise your expenses and still enjoy everything you have on your doorstep.