Cost of living in the UK
The largest single item in the cost of living is rent: the United Kingdom average stood at £1,393 a month in July 2026 and London at £2,317. Consumer inflation for the same month was published at 2.9 percent on the CPI measure.
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- Rent
- ONS private rent index, monthly
- Energy and food
- ONS consumer price index, monthly
- Council tax
- The local authority's band table, annual
- Transport
- The operator's own fares
The settling-in page sets out the administrative order of the first months; this page covers the cost side of that order. Renting carries its own rules — the cap on advance rent and the deposit limit — and those are set out under renting a home.
01
What does it cost to live in the UK?
The monthly cost is made up of five items: rent, energy, food, council tax and transport. The largest of them on its own is rent, and the Office for National Statistics puts the United Kingdom average at £1,393 a month for July 2026.
| Item | Where the figure comes from |
|---|---|
| Rent | ONS private rent index, monthly |
| Energy and food | ONS consumer price index, monthly |
| Council tax | The local authority's band table, annual |
| Transport | The operator's own fares |
Quoting one monthly total would mislead, because two of the items come from national statistics and two from local decisions. This page gives the national ones as figures and the local ones with their source.
02
How much is rent in the UK?
On the figures the Office for National Statistics published for July 2026, the United Kingdom average was £1,393 a month, England £1,451 and London £2,317. The annual increases were 3.7 percent, 3.8 percent and 3.0 percent respectively.
| Area | Average monthly rent | Annual change |
|---|---|---|
| United Kingdom | £1,393 | 3.7% |
| England | £1,451 | 3.8% |
| London | £2,317 | 3.0% |
03
Where is inflation being felt?
The Office for National Statistics put consumer inflation for July 2026 at 2.9 percent on the CPI measure and 3.1 percent on CPIH. Housing and household services made the largest upward contribution, with gas prices rising 14.7 percent over the year.
Transport pulled in the other direction over the same period: the price of diesel fell 8.8 pence a litre between June and July. An average inflation figure is therefore felt differently depending on how a household spends.
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Seven short questions, one tap each. In return you get a costed sheet worked out from how many people are coming, what scale you are looking at and whether it is London — alongside the steps in months, the documents and the published rules.
04
What is the minimum income?
From April 2026 the National Living Wage is £12.71 an hour for those aged 21 and over, and £10.85 for ages 18 to 20. The rates are revised every year on 1 April, with separate floors for under-18s and apprentices.
The maintenance funds a visa application asks you to show are a separate figure, set by the Home Office: £1,171 a month outside London and £1,529 in London. The two serve different purposes and are not interchangeable.
05
How much does cost vary by city?
The largest difference shows up in rent, where the distance between London and the national average is £924 a month. Council tax also varies by local authority and by the property's band, and together these two items decide what a choice of city costs.
That the official maintenance figure used in a visa calculation is set separately for London is the same difference, formally acknowledged. How council tax is calculated and who receives a reduction is set out under property taxes.
06
How do you work out your own budget?
The calculation is built in three steps: read the area's rent from the ONS table, take council tax from the local authority's band table, and write the minimum wage and the visa maintenance figure separately on the income side.
- Read the rent for the area you will live in from the ONS index.
- Find the property's council tax band and the amount the local authority publishes for it.
- Enter the household's own consumption for energy, food and transport.
- On the income side, enter net earnings and, where a visa is involved, the maintenance funds to be shown.
Sources
- Office for National Statistics — In July 2026 average monthly private rent was £1,393 in the United Kingdom (3.7% annual increase), £1,451 in England (3.8%) and £2,317 in London (3.0%); the average house price in June 2026 was £272,000. — 26 August 2026
- Office for National Statistics — Annual CPI inflation was 2.9% in July 2026 and CPIH 3.1%; housing and household services made the largest upward contribution and gas prices rose 14.7%. — 26 August 2026
- GOV.UK — From April 2026 the National Living Wage is £12.71 an hour for those aged 21 and over and £10.85 for ages 18 to 20. — 26 August 2026
- GOV.UK — Student visa maintenance funds are £1,171 a month outside London and £1,529 in London. — 26 August 2026
