Cost of living in London
Data last updated: 12 May 2026
London is made up of 33 local authority areas, each with different costs. This page shows the average across all London boroughs to give an overall picture. For more detail, explore individual boroughs below.
Rent in London
The average monthly rent in London is £1,663.
- 1 Bed£1,402 /mo
- 2 Bed£1,753 /mo
- 3 Bed£2,177 /mo
- 4+ Bed£3,017 /mo
The cheapest 25% of rents start from £1,369/month.
Source: ONS Private Rental Market Statistics
Earnings in London
The average annual salary for residents of London is £40,350.
We use the median (middle value) as the average throughout this site. This is more representative than the mean, which can be skewed by extremely high or low values.
Source: ONS Annual Survey of Hours and Earnings (ASHE)
House prices in London
The average house price in London is £590,688.
- Detached£1,896,773
- Semi-detached£1,305,444
- Terraced£882,549
- Flat£451,689
Source: ONS / HM Land Registry
Council tax in London
Band D council tax in London is £2,090 per year.
- Band A£1,393
- Band B£1,626
- Band C£1,858
- Band DBenchmark£2,090
- Band E£2,555
- Band F£3,019
- Band G£3,483
- Band H£4,180
Source: MHCLG / Scottish Government / Welsh Government
Energy costs in London
A typical household in London pays approximately £1,641/year (£137/month) for gas and electricity.
Energy region: London
This estimate is based on the Ofgem price cap for a typical dual-fuel household using 2,700 kWh of electricity and 11,500 kWh of gas per year, paying by Direct Debit. Your actual costs will depend on your usage, tariff, and whether you're on a fixed deal.
Source: Ofgem Energy Price Cap, Q2 2026
Water costs in London
The average annual water and sewerage bill for Thames Water customers is £666/year (£56/month).
Water company: Thames Water
Water bills vary based on whether you have a meter and your household's water usage. This figure is the company average for unmetered customers.
Source: Water UK / Discover Water, 2026-27
Explore London boroughs
Each London borough has its own costs. Click through for the full breakdown.
Barking and Dagenham
- Avg. rent
- £1,350/mo
- Council tax
- £2,199/yr
Barnet
- Avg. rent
- £1,550/mo
- Council tax
- £2,133/yr
Bexley
- Avg. rent
- £1,350/mo
- Council tax
- £2,366/yr
Brent
- Avg. rent
- £1,600/mo
- Council tax
- £2,235/yr
Bromley
- Avg. rent
- £1,400/mo
- Council tax
- £2,140/yr
Camden
- Avg. rent
- £2,102/mo
- Council tax
- £2,208/yr
City of London
- Avg. rent
- £2,159/mo
- Council tax
- £1,330/yr
Croydon
- Avg. rent
- £1,250/mo
- Council tax
- £2,600/yr
Ealing
- Avg. rent
- £1,569/mo
- Council tax
- £2,139/yr
Enfield
- Avg. rent
- £1,450/mo
- Council tax
- £2,268/yr
Greenwich
- Avg. rent
- £1,600/mo
- Council tax
- £2,108/yr
Hackney
- Avg. rent
- £1,850/mo
- Council tax
- £2,060/yr
Hammersmith and Fulham
- Avg. rent
- £1,950/mo
- Council tax
- £1,520/yr
Haringey
- Avg. rent
- £1,600/mo
- Council tax
- £2,314/yr
Harrow
- Avg. rent
- £1,500/mo
- Council tax
- £2,511/yr
Havering
- Avg. rent
- £1,300/mo
- Council tax
- £2,425/yr
Hillingdon
- Avg. rent
- £1,350/mo
- Council tax
- £2,045/yr
Hounslow
- Avg. rent
- £1,500/mo
- Council tax
- £2,186/yr
Islington
- Avg. rent
- £2,025/mo
- Council tax
- £2,108/yr
Kensington and Chelsea
- Avg. rent
- £2,557/mo
- Council tax
- £1,667/yr
Kingston upon Thames
- Avg. rent
- £1,500/mo
- Council tax
- £2,609/yr
Lambeth
- Avg. rent
- £1,800/mo
- Council tax
- £2,047/yr
Lewisham
- Avg. rent
- £1,425/mo
- Council tax
- £2,237/yr
Merton
- Avg. rent
- £1,600/mo
- Council tax
- £2,147/yr
Newham
- Avg. rent
- £1,600/mo
- Council tax
- £1,944/yr
Redbridge
- Avg. rent
- £1,400/mo
- Council tax
- £2,295/yr
Richmond upon Thames
- Avg. rent
- £1,664/mo
- Council tax
- £2,486/yr
Southwark
- Avg. rent
- £1,820/mo
- Council tax
- £1,967/yr
Sutton
- Avg. rent
- £1,200/mo
- Council tax
- £2,379/yr
Tower Hamlets
- Avg. rent
- £1,900/mo
- Council tax
- £1,838/yr
Waltham Forest
- Avg. rent
- £1,450/mo
- Council tax
- £2,387/yr
Wandsworth
- Avg. rent
- £1,900/mo
- Council tax
- £1,028/yr
Westminster
- Avg. rent
- £2,622/mo
- Council tax
- £1,050/yr
Compare London with another area
Figures on this page are averages across all 33 London boroughs. Individual borough costs may vary significantly. See individual borough pages for specific data.
Data on this page is sourced from: ONS Private Rental Market Statistics, ONS Annual Survey of Hours and Earnings, ONS / HM Land Registry House Price Statistics, MHCLG / Scottish Government / Welsh Government council tax data, Ofgem Energy Price Cap, and Water UK / Discover Water. All official data is published under the Open Government Licence.