UK Cost of Living Guide 2025

Real monthly costs for housing, food, transport, bills and more. Find out what it actually costs to live in the UK — and how your city stacks up.

Updated Feb 2026 ONS Data 2025 Figures
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Mustafa Bilgic UK Personal Finance Writer · Updated 20 February 2026
Based on ONS Living Costs and Food Survey 2024/25 and current market data

UK Average Monthly Costs at a Glance (2025)

Based on Office for National Statistics (ONS) data and current market rates, here are the typical monthly costs for a single adult living in the UK in 2025. These figures represent the national average; costs vary significantly by region.

Rent (average UK)
£1,400
London: £2,200/month
Mortgage repayment
£1,100
Based on avg UK property
Food & groceries
£280
Per person per month
Transport (car)
£150
Public transport: £120
Energy bills
£130
Gas & electricity combined
Council tax
£180
UK average per month
Phone & internet
£50
Mobile + broadband
Entertainment
£100
Streaming, nights out
Clothing
£40
Monthly average

Total Monthly Cost Estimate (Single Person)

Excluding housing: £1,800 – £2,500/month
Including average rent (outside London): £3,200 – £3,900/month
Including London rent: £4,000 – £4,700/month

These are averages. Your actual costs will depend on your lifestyle, location, and household size.

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UK City Cost of Living Comparison 2025

Costs vary enormously across the UK. Here is how five major cities compare for a single person renting alone, covering key monthly expenses:

Expense London Bristol Manchester Birmingham Leeds
Rent (1-bed)£2,200£1,350£1,100£950£1,000
Food / groceries£340£300£270£260£265
Transport£160 (TfL)£100£90£85£90
Energy bills£140£130£125£120£122
Council tax£170£195£180£160£175
Internet/mobile£55£50£48£48£48
Entertainment£150£110£100£90£95
Total (incl. rent)£3,215£2,235£1,913£1,713£1,795
📌 London costs are approximately 68% higher than Birmingham and 79% higher than Leeds when including rent. Even without rent, day-to-day costs in London run around 25% above the UK average.

How Inflation Has Changed UK Living Costs (2022–2025)

The UK experienced a severe cost of living crisis between 2022 and 2024. Here is how key costs shifted over that period and where they stand today.

Energy Bills

The Ofgem energy price cap rose dramatically in 2022, pushing average annual energy bills from around £1,300 to a peak of £3,549 in Q1 2023. Government support through the Energy Price Guarantee capped household bills at £2,500 for most of 2023. By 2025, the cap has settled around £1,560 annually (£130/month), bringing some relief — though still notably above pre-crisis levels.

Energy bills in 2025 are roughly 20% above 2021 levels in real terms after government support.

Food Prices

UK grocery prices rose by approximately 25% in total between early 2022 and mid-2024 — the worst food inflation in 45 years. Staples such as bread, dairy, eggs and vegetables were among the hardest hit. By 2025, food price inflation has slowed to around 2-3% annually, but supermarket bills remain substantially higher than 2021 in cash terms. Switching to own-brand products can save £50-100 per month for a typical household.

Rents

Private rents surged across the UK from 2022 onward, driven by low stock and high demand. According to the ONS, UK average private rents increased by 9.1% in the year to January 2025. London rents rose by around 10.4% in the same period. New rental listings now command an average of £1,400/month nationally, with many UK cities seeing record high asking rents.

Mortgages

After the Bank of England's base rate rose from 0.1% in December 2021 to 5.25% by August 2023, mortgage costs soared. A typical 2-year fixed deal that cost around £700/month in 2021 is now £1,100-1,200/month for the same property on a new fix. By early 2026, the base rate has been cut to around 4.5%, offering modest relief for new fixes.

Summary: Annual Cost Changes

Category20212023 (peak)2025% change 2021-2025
Energy (annual)£1,300£3,549£1,560+20%
Food (monthly)£224£310£280+25%
Rent (national avg)£1,061£1,278£1,400+32%
Mortgage (typical)£700£1,250£1,100+57%
Council tax£157£175£180+15%

UK vs European Cities: Cost Comparison

How does the UK compare to living costs across Europe? The table below uses Numbeo data adjusted for 2025, comparing a single person's monthly costs including rent in a city centre 1-bedroom apartment.

CityCountryMonthly total (1 person)vs. London
LondonUK£3,200
ParisFrance£3,050-5%
AmsterdamNetherlands£2,900-9%
BerlinGermany£2,400-25%
ManchesterUK£1,900-41%
MadridSpain£1,850-42%
LisbonPortugal£1,700-47%
WarsawPoland£1,100-66%
ZurichSwitzerland£4,500+41%

UK cities outside London are competitive with many Western European destinations. London, however, ranks among the five most expensive cities in the world for renters.

Typical UK Household Budget Breakdown

The ONS Living Costs and Food Survey tracks what UK households actually spend each week. Here is how a typical two-adult household distributes spending monthly in 2025:

Average two-adult household (no children): ~£3,800/month

CategoryMonthly spend% of budget
Housing (rent or mortgage + bills)£1,60042%
Food & non-alcoholic drinks£48013%
Transport£44012%
Recreation & culture£3008%
Clothing & footwear£1003%
Restaurants & hotels£2206%
Health£802%
Communication (phone/internet)£802%
Household goods & services£2005%
Other (personal care, misc)£3008%
Total£3,800100%

Frequently Asked Questions

How much does it cost to live in the UK per month in 2025?

A single person living in the UK needs approximately £1,800 to £2,500 per month excluding housing. Including rent, total costs range from £2,200 in cheaper areas to £4,000+ in London. The national average for a single person renting a one-bedroom flat is around £3,000-3,500/month for all costs combined.

These figures come from the ONS Living Costs and Food Survey, Numbeo, and current market data as of early 2026.

How much more expensive is London than the rest of the UK?

London is roughly 50-80% more expensive than the UK average when factoring in rent. Average London rent for a one-bedroom flat is around £2,200/month compared to £1,400 nationally. Day-to-day costs such as food, transport and entertainment are also 20-30% higher in London than the UK average.

If you exclude rent, London is still around 25% more expensive for everyday living than cities like Manchester, Birmingham or Leeds.

What is the average monthly food cost per person in the UK?

The average UK adult spends approximately £280 per month on food, covering both groceries and eating out. This breaks down to roughly £200-220 on supermarket shopping and £60-80 on meals and takeaways.

You can reduce this to around £180-200/month by meal planning, shopping at Aldi or Lidl, using loyalty schemes, and buying own-brand products. Conversely, regular dining out or premium supermarket shopping can push costs to £350-400/month.

How much has the UK cost of living increased since 2022?

UK living costs rose significantly between 2022 and 2025. Key changes:

  • Energy bills peaked at £3,549/year in early 2023 before settling around £1,560/year in 2025 — still 20% above pre-crisis levels
  • Food prices rose approximately 25% in total between early 2022 and 2025
  • Rents increased by 30-40% in most UK cities over the 2022-2025 period
  • Mortgage costs roughly doubled for those re-fixing between 2021 and 2024
  • Council tax increased by around 5% annually, totalling around 15% over the period

Overall, the ONS estimates that cumulative inflation between January 2022 and January 2025 was around 22%, meaning the average basket of goods and services costs 22% more in cash terms.

What is a realistic monthly budget for a couple in the UK?

A couple in the UK outside London typically needs £3,500 to £5,000 per month in total, covering:

  • Shared rent: £1,200-1,600/month (1 or 2 bedroom)
  • Food: £480-560/month for two
  • Two transport costs: £200-300/month
  • Shared bills (energy, council tax, internet): £350-400/month
  • Entertainment and personal spending: £400-700/month combined

In London, expect £5,500 to £8,000 or more for a couple living comfortably.

Is the UK more expensive to live in than other European countries?

The UK sits in the upper-middle tier for European cost of living. It is cheaper than Switzerland, Norway and Iceland but more expensive than Spain, Portugal, Poland and most Eastern European countries.

Germany and France are broadly comparable to the UK average. London rivals Paris as one of the most expensive European capital cities. Manchester, Birmingham and Leeds are significantly cheaper than London and compare favourably with major German cities on a like-for-like basis.

How can I reduce my cost of living in the UK?

The biggest savings typically come from housing (taking in a lodger, moving to a cheaper area, or house-sharing) and food (meal planning, discount supermarkets, reducing food waste). Other high-impact moves include:

  • Switching energy supplier or tariff each year
  • Checking council tax band — around 400,000 UK properties are in the wrong (too high) band
  • Using a cashback credit card for everyday spending and paying in full monthly
  • Claiming all benefit entitlements (billions of pounds go unclaimed each year in the UK)
  • Switching bank account for cash bonuses (£100-200 per switch)
  • Reviewing all monthly subscriptions and cancelling unused ones

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