Cost of living in the UK: A complete guide [2025]

If you’re living in the UK (or thinking about moving there), one of the questions you might have asked is: ‘How much does it cost to live in the United Kingdom?’.

This question is more important than ever.

Since 2023, the UK has been severely hit by global price rises which has led to a cost of living crisis for many of its citizens.

Inflation has grown dramatically across the country, with the UK prices of nearly everything from basic consumer goods to housing hitting record highs.

It’s not all bad, however.

Some areas in the UK remain more affordable than others and there are several ways to save money with the cost of living in the UK—if you follow our advice, that is!

Find out how expensive exactly the average cost of living in the UK is with our detailed guide to the average costs of living in the UK, covering every type of expenditure and average monthly bills UK including food, energy, housing, transportation, and more.

Table of Contents:

1: Average UK living expenses

2: UK food costs

3: UK Energy costs

4: UK transport costs

5: UK housing costs

6: UK healthcare costs

7: UK education costs

8: Assistance with living costs in the UK

Average cost of living: UK expenses

In 2024, the UK was ranked the world’s 22nd most expensive country to live in, with the average UK household spending over £2,700 per month to cover living expenses.

While the average monthly expenses in the UK for a single person is around £1,610 per month, you need to keep in mind that your monthly household expenses will get higher if you have to pay rent or a mortgage. We also need to take these numbers with a pinch of salt, because the cost of living in the UK varies widely across the country.

In 2024, some of the most affordable cities to live in included Kingston-upon Hull, Sunderland and Dundee. Meanwhile, topping the most expensive cities to live in UK list was London.

However, living expenses in London are famously overpriced. According to Zoopla, the average monthly rent in London has risen to £2,121 per month after +4.2% growth in 2023/24—that’s way more than double the national average!

So, does this mean that you should consider relocating to a small city like Sunderland? Well, not necessarily.

After all, the cost of living in the UK is only relevant to your salary and what you can afford.

For this reason, On the Market ranked the cities with the best and worst cost of living in the UK by comparing living expenses to the average monthly salary.

Here are the 10 cities that had the best cost of living in the UK in 2024:

1. Kingston-upon-Hull
2. Blackpool
3. Dundee
4. Middlesbrough
5. Stoke-on-Trent
6. Liverpool
7. Sunderland
8. Durham
9. Glasgow
10. Belfast

These are the 10 cities with the worst cost of living in the UK (according to UHomes):

1. London
2. Bristol
3. Brighton
4. St. Albans
5. Oxford
6. Cambridge
7. Winchester
8. Edinburgh
9. Portsmouth
10. Chelmsford
    

No matter where you live in the UK, the biggest share of your living expenses will come from housing, food and transportation, which altogether make up more than half of the average Brit’s budget.

According to research firm NimbleFins, this is how the average household spends their budgets:

Average monthly household bills in the UK in 2025

The below cost of living in UK data is based on an average annual budget of £32,500.

Housing (monthly bills average for UK)

Rent (private) = £1,133 (42%)
Rent (social housing) = £544 (20%)
Owned with mortgage = £1,646 (61%)

Utilities (water, gas, electricity)

Weekly average outgoings (UK) = £41
Monthly Outgoings = £179
Annual Outgoings = £2,148
% of Budget = 7%

Council Tax

Weekly Outgoings = £33
Monthly Outgoings = £144
Annual Outgoings = £1,726
% of Budget = 5%

Transport

Weekly Outgoings = £101.80
Monthly Outgoings = £441
Annual Outgoings = £5,294

Food and (non-alcoholic) drinks

Weekly Outgoings = £71
Monthly Outgoings = £310
Annual Outgoings = £3,717
% of Budget = 11%

Internet and TV

Weekly Outgoings = £18
Monthly Outgoings = £77
Annual Outgoings = £920

Household (furniture, linens, appliances etc.)

Weekly Outgoings = £36
Monthly Outgoings = £156
Annual Outgoings = £1,869
% of Budget = 6%

UK Cost of Living: Food Costs

Food prices in the UK continue to rise, but at a slower rate. Up until January 2025, food inflation stood at just over 4%.

Although inflation rates have eased, average food cost per month is still at the highest level ever recorded in over four decades.

Increases in the monthly costs of consumer goods have been the key factors causing rising inflation, with food prices rising sharply over the past year and many people on low incomes saying they have had to choose between eating or heating in the depths of winter.

In 2024, the average grocery bill for a family of 4 in the UK was around £682 per month.

The actual price you will spend on food will depend on your salary: single professionals who earn between £17,000 and £28,000 per year are likely to spend around 25% less on their weekly food shopping than people who make over £66,000 per year.

Based on a family of two adults and two children, you should expect your grocery bill to range between £520 and £700 per month.

Average UK Energy Bills

The war in Ukraine caused gas prices to skyrocket in February 2023, and they continued to rise due to cuts in Russian supplies.

As a consequence, gas, electricity and water average UK bills increased substantially more than the EU average in the UK last year.

With energy bills rising at their highest rates since the 1970s, it was good to see energy inflation begin to fall in the first half of 2024. They still remain historically high, however.

At the end of 2024, the typical UK household was paying around £1717 per year for their gas and electricity. This is below the peak level of £2,380 from October 2022 to June 2023, but still 41% higher than in Winter 2021/2022.

In January 2025, the average annual electricity bill in the UK was estimated to be around £671.22 and the average annual gas bill £729.10, so this is a significant improvement. These figures are based on typical use in a household that uses gas and electricity and pays with direct debit, but the actual cost of your bill will vary based on several factors.

Firstly, your energy bill will change depending on where you live in the UK, even though there is relatively little difference in energy prices across the country.

To determine the exact amount of energy bills you will have to pay, you need to take into account the type of property you will live in, your heating system, the energy efficiency of your property, the number of people living there, and your personal usage.

Having said that, the average gas and electricity bills by household in the UK [2025] are estimated to be:

●      Flat or 1-bedroom house: £1292.44 per year, or £107.70 per month

●      3-bedroom house: £1,819.33 per year, or £151.61 per month

●      5-bedroom house: £2,484.16 per year, or £207.01 per month

Cost of living in UK: Transport costs

UK households spend between £85 and £210 per month on petrol and diesel with electric vehicles costing between £35 and £65 to charge. Meanwhile, the average amount spent on public transport is between £50 and £200 depending on the transport method (buses cost between £55 and £85 a month, while regional trains can cost between £110 – £210 a month).

Public transport in the UK is privately owned and run on a commercial basis, meaning that operators are free to charge whatever they want in order to make a profit. As a consequence, public transport in the UK is famously expensive.

A report from campaign group Transport and Environment found that the UK has in fact the least affordable transport system in Europe. For example, taking a train in the UK is 5 times more expensive than in the rest of Europe.

The average single local bus ticket costs £2.80, but bus fares vary across the country, with operators in some rural areas charging as much as £5 for a single ticket. These may strike you as exorbitant fares, and understandably so, but there are ways to save on public transport in the UK.

When taking the train and travelling intercity, it’s a good idea to book train tickets a few weeks in advance, as last-minute tickets fetch high prices. Alternatively, you could manage to save a third of expenses on train rides, or £142 a year, by signing up for a railcard.

Finally, if you’re on Universal Credit, you may be eligible for a Jobcentre Plus Travel Discount Card, which will save you 50% off travel expenses (more info on the UK benefits system below).

Cost of UK Housing  (buying and renting)

UK house prices are high. Yet recently they have been experiencing a bit of a lull.

According to Zoopla, the average house price in the UK is £267,500 as of December 2024. Property prices are now at +1.9% inflation compared to a year ago. If you’re wondering ‘how much does it cost to live in London?’, the average house price there is an eye-watering £531,000!

However, the UK housing market is incredibly fluid. Prices can rise rapidly in any given location depending on a variety of factors.

The table below breaks down the average housing cost of living in the UK by region, including its annual changes as of August 2024.

England

Price = £310,000

Annual change = 1.6%

Wales

Price = £223,000

Annual change = 3.5%

London

Price = £531,000

Annual change = 1.4%

Average English House Prices by region [2025]

The following is a list of house price predictions for 2025, according to the Home Owners Alliance:

East Midlands = £250,605

East of England = £344,434

London = £519,579

North East = £167,132

North West = £225,360

South East = £381,566

South West = £324,709

West Midlands Region = £256,384

Yorkshire and The Humber = £217,146

Taking these numbers into consideration, it’s understandable if you’d prefer to rent a property!

Nevertheless, rental prices in the UK rose by 9.1% in the 12 months to November 2024.

UK Healthcare costs

Residents in the UK have access to free medical care under the National Health Service (NHS).

This covers doctor’s appointments and some hospital treatments although most prescriptions come with a charge. To qualify for NHS treatments as a migrant, first you will have to register for an NHS number.

There are also plenty of private clinics in the UK, with prices varying widely depending on the area, the type of treatment you need, and the experience of the specialist. Operations in a private clinic tend to be very costly and could easily cost you up to tens of thousands of pounds.

UK education costs

The three main options to study in the UK are government-run state schools, private schools (also referred to by Brits as “public schools”), and international schools. In the UK, only state schools offer tuition-free education to pupils who live in the country.

The fees for a three-year-old in an international school are around £23,000, while for a 17-year-old student, they can get as high as £41,000 per year. Tuition fees at public UK universities vary based on the institution, the type of degree, and the length of the studies.

The ‘home’ cost is capped at £9,535 a year, while the ‘international’ price varies between £11,400 and £38,000, meaning that it could be two or three times the ‘home’ fee price.

Assistance with the cost of living in the UK

If you’re struggling to cover the cost of living in the UK, some help is available in the UK.

The UK benefit system can be difficult to navigate, so below is a list of the main benefits you may be entitled to to help with the cost of living in the UK:

●      Carer’s Allowance: £81.90 per week if caring for someone more than 35 hours a week.

●      Child Benefit: £26.05 per week for your eldest child, £17.25 for additional children.

●      Free childcare: up to 1,140 hours of free childcare in England, with different schemes in place in Scotland, Wales and Northern Ireland.

●      Personal Independence Payment: £103.48 at the enhanced rate and £69.26 at the standard rate for those with a long-term physical or mental health condition or disability.

●      Employment and Support Allowance: £71.70- £90.50 per week if you have a disability or health condition that affects how much you can work.

●      Universal Credit: £311.68–£393.45 per month depending on your age and status. This payment is supposed to help with living expenses in UK for those on a low income or out of work.

●      Jobseeker’s Allowance: £71.70–£90.50 for those out of work to help with the cost of living in the UK.

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If you enjoyed reading our guide to the cost of living in the UK, you can find more guides and articles with info, tips and advice over on our blog.

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