How much money do I need to move to London?

Following on from our ‘How Much Does It Cost To Live In London’ post last week, we’re now going to answer the next burning question for those of you who are looking to move to London in the near future. That being - 

How much money do I need to move to London?

Whether you will be saving this money yourself or borrowing from parents, or a bank, you’ll still need to budget a certain amount before you consider your move to London.

As with almost everything relating to moving to London, the answer to this question isn’t quite as clear-cut as perhaps you’d hope. It depends on that variable factor of ‘circumstance’, as in your own personal situation. Will you be working at a new job from Day 1 of being in London, or are you looking for work? Do you already have accommodation lined up, or will you require temporary accommodation whilst you look for something more permanent?

Either way, let’s take you through some general approximate costs, so you can work out how much money you’ll need saved up before you move here.

If you move to London without securing a job, then the first thing that you should do is upload your C.V FOR FREE to Monster, as you’ll probably want to start earning money as soon as possible. You can actually start looking for work before you arrive and you should possibly try and line up some interviews with recruitment firms for your first couple of days.

If you have already found your job and have the difficult position of having accepted a job, but have nowhere to stay, then unless you’re lucky enough to stay with friends or family for free, you should book yourself into some temporary accommodation. Dorms are often the cheapest option available for temporary accommodation, but they’re not always the most appropriate, particularly if you want a good night’s sleep the night before your first day at work. So, you could choose a private room at a hostel booked through Hostelworld. You can get a private room for as little as £17 per night. Many of the hostels are located in Central London, which is great because it means that you’ll be more likely to be nearer your workplace and you could even save money on transport at the beginning of your stay in London. If you’re looking for something a little less communal than a hostel, you might want to try Accommodation London who are able to offer an excellent standard of accommodation for as little as £48 per night for a self-contained studio apartment. The apartments are an open planned room with 2/3 single beds or double bed, TV, sofa, table & chairs. They’re fully furnished & fully equipped, everything you need is in the apartment, right down to linen. There is also a shared washer & dryer in most of the buildings.

Let’s say for arguments sake that you spend 2 weeks in temporary accommodation whilst making a real concerted effort to find accommodation of a more permanent nature, perhaps in a shared house. In this case, you’ll require between £238 (hostel room) and £672 (studio apartment) depending on your accommodation preferences. Even if you find somewhere you like on the first day of looking, you’ll often find that it can take a week or so for credit and reference checks to be done on you before you actually ‘get the keys’.

When securing long-term rental accommodation through an estate agent, letting agent or private landlord, it’s normal to expect to hand over 1 month’s rent in advance, plus a damage deposit of between 4-6 weeks. If you consider that the average cost of monthly rent in London is around £450 pcm, then this would mean that you’d be required to hand over £1125 upfront (if the damage deposit is equivalent to 6 weeks rent). Ouch! But try and remember that you’ll hopefully get most of your deposit back at the end of your tenancy so long as you behave yourself!

You’ll also want to budget money for food and transport. Try and budget £40 per week for food and ensure that you eat breakfast and dinner at home and make a packed lunch out of this budget. Transport is a more difficult thing to estimate upfront, as until you’re settled into permanent accommodation, you probably won’t want to commit to purchasing a travelcard yet. In this case, get yourself an Oyster card (see our Transport in London page for details) and top it up with £20 and see how long that lasts you.

Now you’ve got some ideas of how much you’re going to require for your move to London, based on your own personal situation, please make use of all the other resources that our site has to offer to help get you here. You might be interested in our Affordable London page, which has great ideas on how to save money once you’ve moved here.