Reality Check

Hi,

I am in the process of researching a reasonable cost-of-living(COL) increase for a move from Atlanta, GA to London. My salary will be ~48k (GPB) without COL. I will be working in EC2M. I have been looking at flats along the District and Central lines. It's just me so I've been looking at 1-bedroom flats.

Can someone take a look at the numbers I have found for living expenses in London and tell me if they seem reasonable? Will I be able live comfortably for 1200 GBP within 10 miles of where I will be working? And please let me know if I have forgotten any other costs that should also be included in the COL increase. The only relocating I have done is from Texas to Atlanta

These figures are on a monthly basis in GPB:

Groceries: 300
Sundries: 40
Rent: 1300
Mobile: 40
Cable/Internet: 34
Gas/Elec: 88
Water: 50

Also, I have read that some flat rentals can charge as much as 6 weeks rent up front. Is this true? I also couldn't find connection fees for Mobile, Gas/Elec, or Water. I'm sure this doesn't mean that there aren't any....?

As mentioned, I am sure I left something out. Suggestions/comments are welcome! Any help with this is greatly appreciated!

Thanks!
Shannon

In London, I assume you'll be using the Underground for transport?

If so, you should also include travel card costs.

Here's the info; costs obviously dependent on what zones you desire:

http://www.tfl.gov.uk/tickets/14416.aspx

Council tax which varies widely from borough to borough. Your water estimate seems a little high and your cable/Internet a little low.  Also, you left out regular phone service.  Both our cable and Internet service rely on our landline.

Some agents require 6 months rent paid in advance if you have no UK credit.

Unless you plan to dine on caviar and champagne every evening, I doubt that you as one person will need to spend £300 on groceries each month.  My husband and I spend about that much for both of us.

Also, I have read that some flat rentals can charge as much as 6 weeks rent up front. Is this true?

I'd count on that as a minimum amount.  It sounds like you've got a job lined up, so if you can get a letter from your employer stating your salary and position, that might help you avoid the dreaded 6 months up front -- it worked for us.  If you're going through an estate agent to find a place, they'll have a fee (variable) as well. 

Unless you plan to dine on caviar and champagne every evening, I doubt that you as one person will need to spend £300 on groceries each month.  My husband and I spend about that much for both of us.

Yeah, last year in Bristol I was spending about £100 to £120 per month on groceries just for myself (supermarket shopping, plus eating out maybe once or twice a month).

Your water estimate seems a little high and your cable/Internet a little low.  Also, you left out regular phone service.  Both our cable and Internet service rely on our landline.

The cable/internet estimate doesn't seem all that low as you can get some really cheap packages now - last year I was paying £26 per month for basic digital TV, broadband internet, and landline.

Virgin Media are currently offering:

Digital TV (65 channels) + 10MB broadband + landline + mobile phone (100 minutes, 100 texts) = £39.99 per month (£28 + £11.99 landline rental)

You will also need a TV license which is about 12 or 13 per month.

Petrol / transport?
Buying a car? Licence / driving lessons / test?
Clothes?
Emergency fund?

Will you be living alone? That always increases costs, unfortunately!

I made about what you are going to make when I first made my way over here and did fine with the salary...I lived in NW London and know you would be fine living SW or West...I'd look at a few different possibilities for transport...but if you live either in zone 2 or 3, transport costs will be about £100/mo to get into zone 1.

Many single people in London make about half of what you'll be making and still manage to live a decent life - granted, most live in shared accommodation to cut costs, but I think you'll do fine on £48,000... I'm looking for graduate jobs (physics-related) right now and if I were to work in London, I'd probably be looking at a starting salary of around £25,000 a year - I could happily live off that, because I'm currently stuck in retail earning just £13,500!

you will need 6wks for the deposit and a months rent in advance. If your work is bringing you over are they not offering a housing allowance? Most who do will pay the deposit too.

After tax you're looking at just under £3k per/month. In addition to rent you will have to pay council tax, I'd allow £100 a month. Your cable/internet estimate is low, but there are good deals all the time. We love Virgin Media, but not every area is cabled so you may be stuck getting your internet through your landline. I think BT is a bit of a rip and our last few places have done cable/internet/phone packages through Virgin. I think right now we pay about £45 a month plus any additional calls- to the US, etc.

Depending on where your office is, you can open up your search using the tube. When I worked in the city, I could walk to aldgate, tower hill and liverpool st within 5-12 mins. I wouldn't necessarily limit yourself to circle/district, I don't think making one change in the morning is really that big of a deal- or at least it wasn't to me!