Most young people want to have a good education, get a good job, and live in a secure environment where he or she can get married and raise children. For most young adults in the UK, they prefer living in London. However, these aspirations might not come true for them because the cost of living in the city is skyrocketing every year. For a young graduate, things will get much more complicated, given the fact that they have less investment to earn more in the capital. But why is London becoming so expensive place to live in? To answer this question, let’s look at the following factors which contribute to the cost of living.
Cost Rooms to Rent in London
The rising cost of housing and specifically the increasing rents contribute to the high cost of living in the UK with the residents of London being the highest affected. Workers under 30 years living in London are spending up to 57% of their salary to pay rent.
According to data by property firm countrywide shows that the average cost of rooms in East London ranges from £ 550 to £ 750 for a new tenancy in a double room per month. The cost of one bedroom flat rental per month in East London ranges from £900 to £1000. In West London, the cost of double room flat share rental per month is between £450 and £690, while the cost of one bedroom flat rental is between £850 and £960 per month.
This high cost of rooms in London can be attributed to high demand for the houses and a low supply. With over 300,000 graduates leaving universities every year, the demand for rooms in London goes up with the supply increasing at a lower rate. Therefore, unless the supply of housing matches the demand, the cost of housing will continue to rise and consequently, the cost of living will rise. The other alternative would be creating modest employment opportunities in other cities so as to accommodate the rising number of job seekers.
Fortunately, shared accommodation, like flatshares are becoming ever more available. Meaning you can find affordable rooms easily!
Cost of Food, Transport, and Entertainment in London
With the cost of rooms in London is going up, the cost of food, transport, and entertainment will also continue to rise because these constitute basic needs for the people living in London. The average weekly grocery bill which covers food, laundry, and toiletry items averages £80 to £100. The cost of pub meal for those living in London will average between £8 and£12 per person. For the cost of transport, a weekly Zone 1-2 travel card will cost about £32.10. The rising cost of food and entertainment can be attributed to the rise of demand and cost of production while the cost of transport is dependent on road taxes and the global price of fuel.
Basically, the cost of living is rising because of the increase in population and a lower supply of rooms in London. With the rising population, there is more demand for food and with a lower supply, and then the prices are forced to go up. Transport is dependent on Government levy on toll prices and cost of fuel which is more dependent on global factors.