Key takeaways

  • London is expensive but offers diverse opportunities
  • Higher accommodation and travel costs
  • Access to internships and culture
Samuel Johnson once wrote: ‘When a man is tired of London, he is tired of life; for there is in London all that life can afford.’ But will you ever be truly tired of London, or become weary of the expensive living costs? London is up there as one of the top destinations to visit, but living here presents a different reality. Whilst the city offers so many amazing experiences, it also comes with significant financial challenges. As the cost of living rises, these financial considerations become crucial. As a student, I grew tired of the endless budgeting advice. What I really needed to know were the initial costs and how to manage them effectively. Having lived in London for the past three years as a student, I want to share my main expenses so you can approach them carefully when considering living in this amazing city. I’ve ranked the expenses from the most to the least expensive. 

1. Rent – also be aware of the extra costs

Is London expensive for students?
Source: Canva
It goes without saying that renting in London is notoriously expensive and can be a nightmare. The key takeaway here is to manage your expectations. In my first year, I stayed in student halls, which were slightly cheaper and included utility bills. In my second year, I moved into an apartment with four others in Kentish Town. I wouldn’t change this period of my life, as I thoroughly enjoyed living with my best friends but it was greatly expensive. The rent was high, and extra costs were unavoidable. These extra costs consisted of: 

Energy bills

The ever-rising price of energy bills became a contentious issue in our household when the winter hit. We soon learned that we all had different utility budgets, leading to some freezing nights and unhappy people. So do establish your budget for the month before and potentially think about making a savings pot for utility bills!

Flat amenities

Is London expensive for students?
Source : Canva
Many rented accommodations come furnished with all the basics such as beds, tables and chairs but often lack the common kitchen utensils and appliances. These additional costs can be manageable when split between flatmates, but it is definitely something to be aware of. We used the app Splitwise to divide expenses, ensuring that no one was ever out of pocket.

WiFi

Is London expensive for students?
Source : Canva
For us university students who are chronically online, WiFi is a must. Most rented flats don’t come with WiFi and whilst it is not super expensive (I think we paid around nine pounds each per month) it is another cost to consider. Also, it can be a pain to install – my flatmate ended up sleeping with the WiFi box under his bed all year as that was the best spot for signal!

Council tax

Students are exempt from council tax, but if your rental contract extends beyond your graduation, you’ll be liable. Council tax is notoriously expensive so do keep an eye out for this in your final year. 

2. Transport 

Is London expensive for students?
Source : Wikipedia
One thing I never considered when renting in London was the price of daily transport. Even though London is a pedestrian friendly city; transport costs can rack up if you are not careful. For example, I used to take the bus to university everyday which began to add up.  Remember: Transport for London usually charges at the most inconvenient times, like in the middle of the night – so be wary of going into overdraft!

3.Going out, especially drinking

Is London expensive for students?
Source : Canva
London is notoriously expensive for its drinking scene, averaging around £6.75 per pint. However, there are so many cheaper options that can be explored – for example the student bars offer cheaper prices and happy hours are a must! Bottomless brunches are also a foolproof way to make sure you’ve had your drinking fix. Visit elsewhere on our site to find out about 15 of the Best Bottomless Brunches in London! That being said, if drinking isn’t your thing or you just want to save a considerable amount of money there are many fun options for a sober night out. 

4. Groceries

Don’t be trapped by the amount of Tesco Express shops that you will see in the city! Whilst they are convenient and do provide exceptional, cheap meal deal options their price levels are often higher than the big supermarkets such as Aldi and Lidl.  Instead, opt for your local Aldi or Lidl and meal prep/plan for the week ahead so you don’t find yourself scrambling for takeouts. 

5. Subscriptions

Subscriptions can be a fantastic way to save money as they provide access to services and products at reduced costs compared to one-time purchases. However, if they are not carefully managed they transform into a wallet drainer. Always check the terms and conditions before signing up for subscription services, especially free trials. I did not realise this and ended up being billed for months for services like Amazon Audible and Fabletics that I wasn’t actually using.  So yes, London is expensive, especially for students who are faced with an exceptionally tight budget and a slim student loan. However, by highlighting the primary expenses these challenges can be navigated more effectively and with prior planning. On a more personal level, the highs and lows of not only the financial challenges but also living life in a big city have been so beneficial in shaping me to be a more budget conscious, mature individual. 
Author
Connor Steele
Content Editor
Updated:
i
Last updated: 16 May 2025
Change: Reviewed guide for accuracy and added Key takeaways to enhance user experience

Authors

  • I am a final year student at University College London (UCL) studying BA French and Spanish. I have just returned from an amazing Year abroad in Paris and Madrid. However, there really is no place like home and I am excited to return home to London and explore more exciting opportunities!

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  • Aminah is a dedicated content expert and writer at Unifresher, bringing a unique blend of creativity and precision to her work. Her passion for crafting engaging content is complemented by a love for travelling, cooking, and exploring languages. With years spent living in cultural hubs like Barcelona, Sicily, and Rome, Aminah has gained a wealth of experiences that enrich her perspective. Now based back in her hometown of Manchester, she continues to immerse herself in the city's vibrant atmosphere. An enthusiastic Manchester United supporter, Aminah also enjoys delving into psychology and true crime in her spare time.

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