One of the most important questions to ask before moving to London is ‘can I afford it?’
Perhaps you’re planning to move from another part of the UK, considering a new job offer, or relocating from the US. Either way, you might find yourself asking ‘what is a good salary London’, and what kind of lifestyle can I hope for.
What’s a good Salary in London
£50,000 – £60,000 per year is considered good, but this does vary.
Londoner’s themselves consider over £52,000 to be a good salary allowing for a comfortable lifestyle given the costs of living in the capital.
The median salary in London according to the Office for National Statistics is £47,455, while the Real Living Wage in London is £13.85 an hour or £27,000 a year.
Now let’s look at some of the costs of living in London to see how we arrived at that salary figure.
How much does it cost to live in London?
The average cost of a single person living in London is over £3,600 a month, or close to £44,000 a year, however, the cost of living can vary depending on your lifestyle, and expectations.
London is known for being one of the most expensive cities in the world, yet you’ll find people of all incomes and lifestyles living in the city.
Accommodation will be your biggest expense. Renting a flat is the most common option for those who want to live in the city. According to ONS data, the average private rent is £2,102 per month (June 2024) in London as a whole. This translates into £25,000 a year in housing costs alone.
The average cost of renting in Zones 1 and 2 is £2,694 a month, while prices in Outer London are a little lower, but still average over £1,957 a month.
On the other hand, if you are willing to live in shared accommodation, you can save a significant amount of money. Websites like Spareroom or Gumtree can help you find suitable shared accommodation options.
The average room rental in London is £980 a month (June 2025), while budget rooms range from £700 – £800 in less central boroughs.
What’s the average London salary?
According to the Office for National Statistics (ONS), the average salary for a someone working full time in London was £47,455. This compared with £37,430 a year for the UK as a whole.
As we can see from the breakdown, that £41,800, becomes £32,446 assuming you no additional pension contributions or student loan payments.
Income tax is £5,846, and national insurance accounts for £3,507, leaving us with £32,446 take home pay. That translates into £2,704 a month.
Can you live in London on a £30,000 salary?
We’ve already established that £30k is below the median UK salary and significantly below the median London salary. However, that doesn’t mean it’s impossible to live on. The question is, what kind of lifestyle will you have?
With a gross salary of £30,000, your take-home pay after tax and National Insurance will be just over £2,000 a month. This means you will need to budget your expenses meticulously to make ends meet.
While it’s certainly enough to live on if you are single and willing to live in shared housing, there will be major compromises. For example, your monthly take-home pay of £2,000 would be immediately impacted by the high cost of rent. According to SpareRoom’s data, the average room in a London house share is now £980 a month. This leaves you with just over £1,000 a month for all other expenses, including transportation, food, bills, and leisure.
This tight budget means you would likely have to skip expensive nights out, costly hobbies, and holidays abroad. It’s a “survive, not thrive” scenario. On the other hand, if a £30,000 salary is for a starting or entry-level position with fast career progression, you might be happy to accept a year or two of more basic living to reap the rewards later on.
It is highly unlikely you would be able to afford a place on your own. Your entire monthly take-home pay would be swallowed up by the cost of a one-bedroom flat, which can now average over £1,900 a month in outer London and even more in central zones.
Is the Median London Salary a “Good” Salary?
The most recent data from the Office for National Statistics puts the median full-time salary in London at £47,455. This figure is an excellent benchmark for a “good” salary as it represents the average Londoner’s income.
A £47,455 gross salary equates to a monthly take-home pay of approximately £3,113. This level of income offers far greater flexibility. After spending around £980 on a shared room, you would still have over £2,100 a month to cover all other expenses.
At this salary, you can comfortably afford to:
Live in a well-located house share in a desirable area.
Enjoy a regular social life, including nights out, events, and gym memberships.
Save a decent amount for an emergency fund, pension, and a yearly holiday abroad.
This salary figure is a key turning point for a truly comfortable lifestyle in the capital, allowing for both day-to-day enjoyment and long-term financial goals.
So, what is a good salary in London?
The truth is, it varies depending on your lifestyle and personal circumstances.
It goes without saying that the cost of living in London is significantly higher than other parts of the UK. This means that even if you earn a higher salary in London, you may still struggle to make ends meet due to the higher cost of living.
The figures typically thrown around are in the region of £65-70k, that would mean a monthly take home of between £3,600, and £4,300. Spending nearly half of this on accommodation would get you a nice flat in St John’s Wood (NW8), Portobello Road (W11), or even a small flat in Covent Garden
You then have enough to enjoy yourself, and even set aside some savings.
What do Londoners think is a comfortable salary?
A study by Time Out magazine which asked Londoners how much they earn, and how much they think they would need to live a comfortable life in the city.
The study found the average Londoner thinks you need to earn £52,859 a year to live comfortably in London. Unsurprisingly, the figure varies based on how much you earn. Those on less than £20,000 think you need £46,571, and those earning more than £100,000 think you need £79,576.
In conclusion
In summary, you can survive live in London on £30k. People do it. Think students or those on the minimum living wage. The question is what kind of lifestyle would you have?
Given the cost of accommodation, which is the main differentiator between London and the rest of the UK. £47k becomes more realistic, especially if saving for a deposit to buy a your own home one day.
If you prefer to live alone, you will likely need to be earning in excess of £60k a year to be comfortable, and even then, can’t be too picky about your location. Once you get into the £70k range, then more options open, in terms of location, and property type, plus savings and investments.
Which all that said though, a good salary in London really just depends on your lifestyle, expenses, and personal preferences. When determining what a good salary is for you, consider factors such as the average salary in your industry, your living expenses, and your savings and investment goals. By taking these factors into account, you can determine what salary is right for you and plan your finances accordingly.
Want to know if you can afford it? Input your salary into our take home salary tool to calculate just how much you’ll have left over after tax, student loan, and other deductions.