Graduates who relocate to London for work post-university, are often concerned about the living expenses associated with London. Unfortunately there is no definitive answer to the question ‘how much money will I need to earn in order to live comfortably in London?’. As you can imagine, every graduate who moves to London has a different set of circumstances and criteria as to how they’d like to live their life in London. However, we’ll use this article to breakdown some average costs for you.
By using Salary Track’s November 2009 report, the average gross salary for graduates working in London was £25,000 per annum. This is £2000 more per year than the average graduate salary in the remainder of the country. A person earning £25,000 would take home £18,273.65 (depending on their tax code) after tax and student loan deductions. The Student Loan Company take 9% of everything you earn over £15,000 from your earnings, so in this case, you would pay £900 per year back to the SLC.
Rental costs in London are extremely variable, but there are some key factors that are a fairly good indicator of how much you’ll have to pay per month in rent. If you wish to live by yourself, then this is probably going to be the most expensive option available to you. If you’re a couple sharing a 1 bed flat, then this would put you at an advantage to the solo dweller, as you’ll be able to split the cost of the bills and rent straight down the middle. Next if you’re willing to live in a shared house, then you could save loads of money, as there could potentially be 4 or 5 of you to split the bills with. Finally, the icing on the cake for cheap rent, would be if you’re a couple sharing a bedroom in a house with other people living there. If you budget around £500 per month (or £6000 per year) for your rent, then generally this should buy you some reasonably comfortable accommodation in a decent area. However, this changes if you’re planning to live by yourself, in which case you’ll need to set aside at least £650 and even then you’re likely to live in an extremely pokey space.
The bills that you’re required to pay in London aren’t any different to ones that you’ll have to fork out for in the rest of the UK. They include council tax, utilities such as electricity, gas and water and optional bills such as for a mobile phone, landline telephone, television licence, satellite packages, broadband etc. When it comes to council tax though, it’s worth knowing that there are 33 different council boroughs covering Greater London and they each…