The living cost for an individual in the UK’s capital is now £3,255, making it the third most expensive city in the world and most expensive city in Europe to live in.
New data compiled by uk-lifeinsurance.com has revealed the living costs for an individual in London is around £1,063, while city centre rent is around £2,191, meaning an individual would need to earn £50,000 each year to cover living costs with their post-tax earnings.
Amid the high cost of living, London ranks 19 out of 20 for quality of living in the 20 most desirable cities in the world, with only Milan scoring lower for quality of life, with a high cost of property and living expenses dragging down the quality of life for millions of Londoners.
Elsewhere, US cities New York, San Francisco and Seattle, and Singapore score higher for cost of living than the UK capital. Elsewhere in Europe, Amsterdam, Paris, and Milan are slightly cheaper than London, but Spanish cities Barcelona and Madrid have significantly lower costs of living, potentially making them more desirable for new entrants to the workforce and savvy spenders who still want the big city life.
However, insurance costs, such as home, car, and life insurance, are cheaper in London, averaging around £126 per month compared to cities like New York, where this figure jumps to over £375. Only Tokyo and Berlin have cheaper insurance costs, with many European residents having to pay twice the amount as Brits in insurance costs alone.
Lasee Kurkaa of uk-lifeinsurance.com, said, “London continues to be an expensive place to live as the cost of living has risen in recent years, as well as rising house prices. However, other costs, such as insurance, are significantly cheaper than in other cities in the US and Europe.”
“Our recent survey across 2000 Brits found that despite its relative affordability compared to other products, only half of Brits believe they can afford life insurance. More needs to be done to demonstrate the value of insurance and benefit for people’s finances in the long term, especially as costs continue to rise.”
“It’s important people continue to budget for expenses that can benefit them in the long term, such as life insurance, which can be a huge relief for families if the worst were to happen.”
