• A single person living in London in a studio or a flatshare would need a gross salary of £37,000 in order to be financially stable
• Rent in London is 40% of the minimum financially stable budget
• Utilities, council tax, subscriptions and transport make up 21% of the budget

15 January, 2024, LONDON –

According to the latest figures, a single person living in London in a studio or a flatshare would need a gross salary of £37,000 in order to cover their everyday expenses and save a bit, according to personal finance website finder.com. See the full budget for more information.

Rent in London is 40% of the minimum financially stable budget

The budget considers rent, utilities and much more, and, unsurprisingly, the cost of accommodation is nearly 40% of take-home pay, with a single person living in a studio or flatshare in London spending an average of £921 on rent.

To live comfortably alone in a one or two-bedroom flat, the average rent is expected to be at least double the current estimate in central areas.

Utilities, council tax, subscriptions and transport make up 21% of the budget

The average Londoner spends around £133 on gas, electricity and water per month and an estimated £63 per month on council tax. A transport allowance of £200 per month combined with around £102 in online subscriptions brings total bills to around 21% of monthly take-home pay.

The online subscriptions include a phone plan, broadband plan, music streaming service, video streaming service and a premium shopping membership for online retailers.

Groceries and dining out stack up to over for £300 a month

We estimated a weekly shop of £31, bringing monthly grocery costs to £166, meanwhile eating out for dinner once a week will amount to an estimated £173 over a month. This brings total food costs to £339 per month, however, we have also included some discretionary spending on snacks and drinks of around £115 per month. This includes alcoholic drinks and coffee and tea costs.

Health and leisure spending is 11% of the monthly spend

Gym membership, holidays and clothes shopping amount to 11% of the monthly budget. The average Brit spends around £2,115 on holidays per year, meaning a monthly contribution of around £176. Meanwhile, the average gym membership in the capital comes to £51, whilst the average estimated monthly expenditure on clothing is £32.

On top of this, the budget includes 10% monthly savings, to account for any unexpected expenses and additional discretionary spending. This could be supplemented by additional credit lines.

Methodology

The budget uses the average price of goods in the capital from a variety of sources.

Sources

• Homelet
• ONS
• Moneyhelper
• Numbeo
• Good Housekeeping
• GOV>UK