Category: Settling in the UK

When moving to the UK I had no idea I would be starting from scratch with my credit score (totally naïve of me!). No matter how good or bad your credit score is in your home country you will be starting from zero when you move to the UK.

Whether you’ve just moved to the UK or been here for a couple of year this article will cover who the credit agencies are, what they generally look for and how to build your credit score as a new resident.

Stay tuned until the end to hear about the drama I had getting a phone contract and contactless card.

Who Are the Credit Reference Agencies (CRA) in the UK?

The UK has three Credit Reference Agencies (CRA) that lenders generally use to verify you when you are applying for credit. Just to keep us on our toes the credit scores are not standardised so each one will score your credit differently.

Here is Experian, Equifax and TransUnion (the three CRA’s) score breakdown from very poor to excellent:

Agency	Score	Rating
Experian	0-560 561-720 721-880 881-960 961-999	Very poor Poor Fair Good Excellent
Equifax	0-279 280-379 380-419 420-465 466-700	Very poor Poor Fair Good Excellent
TransUnion (formerly Callcredit)	0-550 561-565 566-603 604-627 628-710	Very poor Poor Fair Good Excellent

Here’s what my basic credit report looks like with Experian:

What is Included and Not Included in my Credit Score Rating?

Even though your credit score will be totally blank as a new resident of the UK it’s good to know the factors that you are measured on.

What’s included:

• Name, address and date-of-birth.
• Past credit applications.
• Credit repayment history, including late or missed payments.
• Your existing debt.
• Your electoral register presence.
• Any joint credit cards or loans.
• If you’ve been declared bankrupt or have an IVA.
• Any county court judgements (CCJs).
• Current account turnover.

What’s not included:

• Student loans.
• Medical history.
• Council tax arrears.
• Criminal record.
• Parking or driving fines.

What Credit Scores Affect

Here’s a quick overview of how your credit score can affect major finance areas:

• Mortgages – Poor scores will simply get you rejected. Work to improve this before you look at buying a property. 
• Credit cards – whether you will be accepted and the rates you will be offered, 
• Loans – same as credit cards. 
• Utility bills – as they share data between themselves it’s important you pay your bills on time. 
• Mobile phones – generally as you are spreading the price of the handset so this is counted as a loan. If you are rejected you won’t get a contract and will need to pay as you go.
• Car and home insurance – Opting for monthly payments means that the insure is giving you a loan for the money over the year and generally charging you interest. They will run a credit check for this. It’s cheaper to get yearly insurance due to this. Even when you use comparison markets for insurance they will run soft credit checks to provide you quotes from insurance companies.

Here are 12 Simple Steps You Can Do to Build Your Credit Score as a New UK Resident

1. Get a UK Address

As a new UK resident finding accommodation will be high on your list anyway as you need somewhere to live! Having a UK address is one of the few common denominators that is shared across your credit accounts. Therefore, you do need a permanent address in order to get credit as it forms part of the data shared with credit agencies.

What do credit agencies use your address for?

• to confirm your identity.
• to match all your credit information to you.

When providing your address it’s important to always write it in the same format. For example, Flat 5, 64 verse 5/64 can impact some of your applications. It’s best to keep it consistent so you don’t have any issues with your credit reports.

Another thing to be mindful of is any type of credit, the lender will ask you to address history over the past three years. For example, if you apply for a sim-only contract on a phone companies website you might get rejected whereas going into a store you can be accepted. This has happened to me, I was accepted in store but rejected online as I was unable to provide the address history. 

How Does Your Address Affect Your Credit Score?

Credit agencies use your address to determine how you have handled credit in the past.

ClearScore states that things like what area you lived in and who lived at your address before you shouldn’t have an impact on your score.

The one thing to be careful of is how much you move could indirectly affect your ability to get credit. Lenders look for stability in people’s credit scores so moving can indicate that you have a number of issues.

At the end of the day, you can’t avoid moving so don’t worry too much but be mindful if you move 3 or 4 times a year then lenders will be cautious about lending money.

2. Open and Manage a Bank Account

Opening a bank account can be challenging in the UK and a bit of a catch 22 as a new resident. You need proof of address to open a bank account but then you don’t have the proof and so on it goes.

Get a Bank Account Before Moving

To make things simpler before moving to the UK, see if you can open a bank account for the UK in your home country, banks like Citibank and HSBC offer these services. Just be aware that this could cost you money to open an account internationally.

Allow at least one month before you leave to open one of these.

Get a Traditional Bank Account in the UK

To get an account with one of the high street banks like Lloyds, Santander, Barclays, HSBC or NatWest you will need to do this by attending an interview and bring the following information:

• Your passport (mandatory).
• Biometric Residence Permit (mandatory if you are on a UK visa).
• A letter of employment (bank-dependent), proof of address which can be a rental contract or bills in your name to a UK address (mandatory) and potentially a letter from your current bank advocating you as a customer (bank-dependent).

When I struggled to get a bank account, I used Britbound service to help me. They have a package for a UK Bank Account and Sarah makes the process really easy. The only downfall is the appointments must be in London with the bank they have the relationship with. If you are moving somewhere else in the UK this might not be the best option. 

Challenger Bank/App Focused Bank Account

Challenger banks were created as digital-only banks in the UK. They are an alternative to the traditional high street banks. They will provide you an app as the base to run your banking needs. 

I recommend looking into Starling, Monzo and Revolut as options for your banking needs. Both Starling and Monzo are FSCS protected which means if they go out of business your money is protected up to £85,000. 

Revolut and Wise use safeguarding as their means of protecting your money which means they have to hold the equivalent amount of money in a safeguarded account. If they went under then this money is used to return your money. 

I currently use Monzo for my everyday spending and Wise for all of my international transfers, plus parts of my business banking. Most of my income is paid in USD so this is a perfect solution as in between the bank and saves on exchange fees. 

To open an account with a Challenger Bank:

• Have a UK phone number (you generally will get rejected if you don’t have a UK number).
• Download the app of your prefered bank.
• Provide proof of your identity by taking a photo of your passport.
• An address where you can receive the debit card.

How Does Your Bank Account Affect Your Credit Score?

Bank accounts will affect your scores if you do things like switch banks too regularly or if you switch before you apply for a big loan, an overdraft or credit card when you don’t need it.

As a new resident, you may end up with a bank account that wasn’t exactly what you wanted to start off with. Once you’ve got yourself settled, shop around until you find the right bank or financial institution and then switch.

If you plan on switching bank accounts look for the seven-day switching service. This means that you are not stuck in limbo when switching bank accounts and if you forget to change a payment like your salary or direct debits and standing orders these will be transferred into your new account.

3. Show Proof of Employment

Getting a job is probably high on your to-do list when! The benefit of having a job is to show that you have a regular income and a salary to pay for things like debt.

How Does Your Employment Affect Your Credit Score?

When you first arrive, you may struggle get a mobile phone contract or a credit card. Once lenders see regular payments into your bank accounts this should make the process easier.

4. Get on the Electoral Roll

When you register to vote, your electoral details are recorded on your credit report. The confirmation of your name and address boosts up your credit rating after 30 days.

This is only applicable if your nationality allows you to be eligible to vote. For example; EEA citizens and Commonwealth countries like Australia, New Zealand and Canada.

If your nationality isn’t one that allows you to vote, for example, US citizens then you can request a Notice of Correction to your credit report. You will need to sign-up to a credit agency and get a report run first and then explain the reasons why you can’t register to vote.

You can register vote two ways, either online or by post. The local council will send a letter to your household each year requesting you to confirm the voters at that address.

How Does Your Electoral Roll Affect Your Credit Score?

You could be missing out on additional points which will boost your overall credit score rating.

Voting isn’t mandatory in the UK so if this isn’t something that you don’t wish to do then it’s fine.

5. Manage Small Credit Accounts

Building credit through forms of credit such as a mobile phone contract or credit card will help build your score steadily. When you have no credit history the types of credit cards you can apply for will have higher interest rates and lower credit limits.

With mobile phone contracts, you may find you can only apply for a SIM-only contract while you build your credit score (I have a funny story about this which I will add to the end).

Showing lenders that you can manage a line of credit and pay those bills on time is key to level up to kick-a** adulting skills/ building your score. Once established you can move on to the actual type of credit cards or phone contract you wish to have.

Just to answer questions on forums like:

Can I get a credit card on a Youth Mobility Visa or UK Ancestry Visa?

Yes, you can! Being a resident, you will be able to apply for a card, you just may need to start with a credit builder credit card as it’s likely you have no credit score.

At the moment I only have one credit card with American Express and a phone contract which I will be changing to a SIM-only contract. I did have an overdraft which I cancelled as I no longer need to after having a credit card. This was all while I was on my UK Ancestry visa.

Credit Builder Credit Cards

Here are a few options for cards to start off building your credit with are:

• Capital One Balance Transfer Card
• Chrome Credit Card
• Tesco Bank Foundation Clubcard Credit Card
• Chrome Credit Card
• Aqua classic Credit Card

Find out more about Credit Builder Credit Cards at uSwitch or Money.

AMEX Card

American Express makes the move abroad seamless for 20 countries. This is a great option if you’re an existing member or look at applying for one a few months in advance so you can make the switch. Once you move, let them know and they will transfer your card across. 

What you must have: 

• An eligible American Express Card.
• A home address.
• A phone number.

Don’t have an Amex Card? Use my referral link to get started. I currently have the British Airways points card. This is great for collecting air miles and if you meet the companionship vouchers these are amazing for long-distance flights. I’ve flown to Mexico for £300 return in the past. 

How Does Your Small Credit Accounts Affect Your Credit Score?

Several factors can affect your credit score when it comes to credit like payment history, length of credit history, types of credit and new credit lines. It all comes down to managing your credit lines, so:

• Making sure your payments are on time and you don’t miss any.
• Establishing a longer-term credit line so getting accounts you actually want in the long run.
• Type of credit you have has an impact so having a mortgage, student loans, credit card debt, medical bills or retail accounts will be factored in when applying for credit.
• Opening too many new credit lines, this will increase your risk factor and flag to lenders.

6. Set Up Direct Debit Payments

Look at setting up direct debits for your personal loans, credit cards, phone bill, rent or household build as it allows you to pay your bills on time.

As each accommodation arrangement is different this will depend on how your bill arrangement is set up, live in or private landlords may want to manage the household bills whereas renting or owning your own bills means you can manage it however you want. The more you establish yourself in the UK you can build on establishing direct debit payments.

How Does Direct Debits Affect Your Credit Score?

Late payments will damage your credit score, even one late payment can affect your credit score. Direct debits help ensure that you always pay your bills on time and don’t have to worry about remembering all those dates.

7. Don’t Apply for Credit too Often

Hard searches (when credit is applied for) are noted on your report so applying for credit you are not ready for will have an impact. It’s best to wait until you have built a credit score before applying for bigger credit lines.

Check with Experian, Equifax or TransUnion before applying to see if you will make the cut and be successful with that credit line. See if you can find any information about what the lenders are looking for as well.

You can run soft searches for credit that you are likely to be accepted for. This is used in things like when you get a quote for car insurance and it doesn’t affect your credit score. 

How Does Applying for Credit too Often Affect Your Credit Score?

I’ve mentioned this just above it will be noted on your report so having 10 hard searches on your report won’t make you look favourable to lenders.

When I was having issues getting a mobile phone I only tried twice over the year before I was successful the third time. I wanted to make sure that I didn’t have too many marks on my score.

8. Close Accounts You No Longer Use

Keeping nice and tidy accounts shows to financial companies your suitability for credit and how much credit you already have available to you.

This is a balancing act as you don’t want too many short relationships and it can be better to leave them inactive. It can give you a short-term boost closing them when you need it. 

How Does Having Too Many Account Affect Your Credit Score?

A bit of a balancing act is needed as the length of the accounts also is factored into your credit score. Have a look at your report before closing accounts. Potentially you could see a dip in your credit score but nothing that should stop you from getting credit.

9. Check Your Credit Report and See If There Are Any Errors

After you’ve been here a while and are established, start looking at ordering a copy of your credit file. These can be ordered online for a small fee from the websites of the three main credit reference agencies: Experian, Equifax and TransUnion. Alternatively, you can sign up to the websites to monitor your score (some do come with a monthly fee).

Check if you have any errors and ensure any notice of corrections are added to your file.

I currently use Experian to check my credit scores as they offer a free report to see how my score is growing and then a paid service if you want to dive deeper into your records.

10. Consider Tools like LOQBOX To Improve Your Score

Companies like LOQBOX help build your credit score. Think of it as a digital piggy bank but it’s reported as loan repayments to the credit reference agencies. This shows that you can handle credit and improve your score. 

When using this option make sure you can make the payments, if you are unable to make the payments then do cancel your account and avoid any impacts on your reports. 

Read the fine print before joining these companies. Here’s some feedback from a friend on their experience with LOQBOX: 

For LOQBOX make sure you currently have income and your credit score is high enough to apply for an overdraft. There’s nothing to imply the account they link you to set up does a credit check but it does. It is a savings account with TSB that has an “optional overdraft”, however in their experience this was not optional. Since the “savings” account required a credit check and she was unemployed their application got declined and their credit score went down. 

They thought from LOQBOX was only a savings account and didn’t require employment for using the service. 

12. When Applying for Credit

Here are some things to be mindful of when applying for credit. 

The application form – fill in the form correctly with your key details, one slip such as entering your salary wrong can impact your application. Also, inconsistency can raise your fraud scoring like different job titles, the way you write your address, phone number, etc. 

Previous dealings with the lender – companies will assess your past data/dealings with them. For example, you may find your bank is more willing to lend you money than an alternative bank as you have a rapport with them. However, if you’ve had problems then they might make it harder to get accepted there as well. 

Equifax, Experian, and TransUnion credit files – I’ve detailed at the start of this article what credit agencies will look for but in summary: 

• Electoral roll information.
• Court records.
• Search, address and linked data. 
• Utilities such as gas and electricity firms (as they do hard checks).
• Account data. Banks, building societies, credit cards etc.

Fraud data – if you have committed fraud or someone has stolen your identity and committed the fraud then this will be held on file. 

Why I Couldn’t Get A Mobile Phone and How It Was Resolved

A couple of years ago I tried to get a phone on a contract and I was rejected! I couldn’t understand why it was so I mentioned this to my boyfriend and he’s like have you checked your credit score? I had not even considered that I needed a credit score to get a phone! I look at my credit score and it was fair but not good or excellent.

I spoke to my boyfriend again, he’s like have you register to the Electoral Roll? Nope, I had not done and at the time had no idea it would affect my credit score so much. Off I go to apply to be on the Electoral Roll. Waited a couple of months for it to apply on the credit report (it takes around 30 days) but during this time I had been given a new work phone so I just switched over to that one for a while.

Year and a half later I try again! It fails yet again, no idea why! Since then I had applied for a credit card and I was enrolled to vote. I also had bills in my name for quite sometime, these were on direct debit and managing my credit lines well. I didn’t check my credit score because I was trying to save money by not paying the fee with Experian as I had already completed the free trial.

Fast forward a couple of months I was trying to pay my credit card and the payments were failing. My bank calls me and asks me to confirm my details, but they kept failing. I had no idea what was going on, I was getting my birthday right, after all, it’s my birthday.

After back and forth with the bank, I have to go into the bank to show my ID to prove who I am. Turns out that my birthday was out by 5 days! All this time my birthday had been incorrect, super strange.

When the whole birthday sager settles down I reapply for the phone and it was successful.

Huzzah I finally got there after a series of being rejected.

Not Being Approved for Contactless

My sister moved here a couple of years after I had been living here. She applies for a bank account and upon opening an account she was given a contactless card but I wasn’t. I ask my bank to switch me to contactless and they just tell me I’m not eligible for one with no explanation. As she didn’t have any credit score yet again I am confused why I can’t get contactless.

I ask a couple of times confused why I couldn’t get one and still no answer. I forget the whole issue for while, after all, it stops quick spending.

Then not long ago I lose my wallet (after the whole birthday incident) and ask for a replacement card. Open the mail a couple of days later and to my surprise, there was a contactless card. It seems that the birthday issue had been affecting my finances this whole time.

Do you have any tips building your credit score in the UK? Any disastrous stories that impacted your score? Let me know in the comments below.

More Living in the UK Articles

• Exchanging a Foreign Licence for a UK Drivers Licence
• A Helpful Guide on How to Find a Flat in London
• Cost of Living in London
• Essentials Items You Need for a New Apartment or Home

Thought about moving to London? Then you’ve probably been trying to understand how much it will cost to live here and no doubt you would have stumbled across articles about how expensive the cost of living is in London.

I will breakdown what my monthly expenses are living in London and show you examples of the past few years. Plus anything else you should consider when budgeting for when you move.

Even though the city can be expensive there are savings to be had as well! Always negotiate where you can or try some of the free activities London has to offer for entertainment.

Cost of Housing in London

A high percentage of your salary in London will go on renting or paying a mortgage for a property. To give you an idea of the percentage of salary you might be putting towards rent:

• Hamptons survey in 2020 said that the average 21-29 year old spent 34% of their pre-tax income on renting a room.
• Trust for London has said that the average one-bedroom property is equivalent to 46.5% of gross-median pay. 

In 2021 there may be some savings on rent as rental prices have been dropping, especially in central London. SpareRoom has said that renting a room is 8% lower in Q4 of 2020 compared to 2019. 

According to Zoopla, in October 2020, the average cost of rent in London fell by 6.9 per cent.

When starting your property search, I recommend using a tool like the London Mayor website heat map as it will give you the median prices for the area.

Renting a Whole Property 

The average rental price in London in 2021 for new tenancies, according to Homelet.co.uk, is £1,572 a month. 

As the flat I live in is owned by my boyfriend the cost of living here is different. If it was on the market as a rental it would rent out between £1,600 to £1,700 for a two-bedroom flat in zone 3. 

When looking for a flat to rent I would start with Zoopla or Rightmove, these sites are where estate agencies will list properties. 

Psst. Don’t forget to read my guide on How to Find a Flat in London where I cover everything you need to know.

Renting A Room 

It’s very common in London to live in shared accommodation where you rent a room within a flat or house. According to the Hamptons survey the average Londoner rented a room for £728 which is up 2.8% from 2019. 

Renting rooms will generally be excluding utilities so this cost is something you should check with your potential roommates. 

When I was renting from 2013 to 2016 I paid from £650 to £740 for a double room in zone 2 living with 3 other people and these prices are not including utilities. 

Spareroom will help provide prices on rooms, especially those looking to keep costs down and live with other people. You can check this document on the average of room prices across London. 

They have a handy tool for helping you find where to live, try it out. If you are a couple expect to pay more for a room than a single person but split between the two of you it will be cheaper.

Psst. Don’t forget to read my guide on How to Find a Flat in London where I cover everything you need to know.

Renter’s Insurance

Renter’s insurance is formally referred to as tenant’s insurance and this is designed for people who are renting properties. 

There are two types of insurances:

• Tenants Liability Insurance insures you in the event of any accidental damage to items that belong to or are provided by your landlord in the property. As it is common to have furnished accommodation in the UK, this can protect you from accidentally damaged items and deposit deductions. 
• Tenants Contents Insurance is to protect your contents if there are any issues like fire, theft, accidental damage or other insured risks. 

You can opt to have both insurances within your policy. 

Your landlord will not insure your personal possessions in their property, they may have building insurance to cover the property but if there was a fire it would be your responsibility for your contents. 

Prices for insurance can start as little as £10 a month so it is an affordable cost for peace of mind. 

Do I need Tenants Liability or Tenants Contents Insurance?

No, they are not mandatory requirements to rent a property in the UK. It depends on how much risk you want to take on whether you get the insurance. 

Utilities in London

The common utilities and household bill for London include council tax, electricity, gas, water, internet and TV licnese. I will breakdown what each one is and how much to expect.

For the utilities you are allowed to choose your own supplier you can use comparison tools like Money Super Market, Go Compareor U-Switch to find the best supplier for you.

Council Tax 

Council tax is an annual fee that is paid to the local council to fund local services like rubbish collection, police and fire services. 

You can choose whether you pay over 10 or 12 monthly instalments or annually. When you receive your bill contact your local council to set-up the payment plan. I currently pay mine in 12 monthly instalments. 

The amount of council tax you pay will vary on where you live and how much the property costs. There are also reductions available, for example:

• Live alone (25% discount) 
• Student 
• Low income 

You can read more about exemptions and reduction here. 

Here’s a summary of my monthly payments: 

2018 Costs	2019 Costs	2020 Costs	2021 Costs
£130.30	£137.00	£141.41	£142.00

Electric and Gas 

For electric and gas suppliers you can choose your own supplier. These are the big suppliers for electricity and gas in London E. ON, British Gas, EDF Energy, Npower, Scottish Power and SSE. 

Although there are more than 20 suppliers providing electricity and gas. Using websites like Money Super Market, Go Compare or U-Switch will help you narrow which provider you should choose.

There are two types of energy tariffs that will be offered: 

• Fixed-rate tariffs mean you pay for each unit of electricity or gas you use. 
• Variable-rate tariffs mean you will have a varied rate in the price which can go up or down at any time. 

All the other tariffs will be a variation of the two mentioned above. 

Many providers will offer discounts if you choose them as the electric and gas supplier. It’s important when choosing that you check the deals at the time. 

Here are my electricity and gas costs over the years: 

	2018 Costs	2019 Costs	2020 Costs	2021 Costs
Electricity	£ 30.74	£38.06	£38.06	£85.61
Gas	£30.38	£36.21	£36.21

In 2021 I’ve changed to a dual supplier for my energy bills. I’m now with Octopus Energy on their Supergreen Octopus which is 100% renewable electricity & the gas is fully carbon offset.

The cost of energy has gone up due to the fact there are three of us now working from home and I paid a few extra pounds to support green energy. 

Water 

Thames Water is the main supplier for water and sewerage services to London and a large proportion of central Southern England. Unfortunately, there is no shopping around for this! 

You can find out more details about how your bill will work with Thames water here. 

There are options for paying your water bill, it can be from weekly to annual payments. I personally pay monthly and here are water costs over the years:

2018 Costs	2019 Costs	2020 Costs	2021 Costs
£31.21	£32.70	£33.46	£33.46

Internet 

Broadband is a fixed price in the monthly bills so it’s easy to budget for. Simply choose the speed that you need for your household and a provider that is offered in your area. As there is competition in this space you will be able to bargain for the best price. 

You can also get combination packages like tv and broadband, mobile and broadband or all three combined. 

I pay quite high prices for my internet as I wanted a fast fibre connection. It actually ended up being cheaper in recent years to get tv and broadband bundles. I highly recommend negotiating as I saved £21 a month on my latest renewal. 

My internet breakdown over the years

2018 Costs	2019 Costs	2020 Costs	2021 Costs
£41.23 – Fibre only	£49 – Fibre only	£49 – Fibre with TV	£53 – Fibre with TV

TV License (optional)

TV license is required if you plan on watching free view TV or apps like the BBC iplayer. You can check if you need one on their website. 

I do pay for a TV license as we watch free view TV. Over the cost of a year it’s only a couple of pounds a month. You can pay for this either monthly or yearly. 

Here is how much I paid in TV license costs over the years:

2018 Costs	2019 Costs	2020 Costs	2021 Costs
£150.50 (yearly)	£150.50 (yearly)	£157.50 (yearly)	£157.50 (yearly)

 Monthly Price for Utilities in London

The total cost for the household is £327.20 for 2021 which covers Council Tax, electricity, gas, water, internet and TV license.

2018 Costs	2019 Costs	2020 Costs	2021 Costs
£276.40	£305.51	£311.27	£327.20

Individual Monthly Costs

As an individual you will have varying costs in your budget. This will include mobile phone, groceries, personal care, healthcare and any other line item you consider a monthly cost.

Mobile Phone 

Mobile phone costs will vary based on what type of contract you plan on getting or have. I personally buy my phones out right now so I have a sim only contract and went for a more data driven package.

For £10 I get 5,000 minutes and 10GB of data. 

Since 2019 the cost of my sim only contract hasn’t changed and has been a predicable cost.  

2018 Costs	2019 Costs	2020 Costs	2021 Costs
£50 (phone & sim contract)	£10 (SIM Only)	£10 (SIM Only)	£10 (SIM Only)

What’s the Monthly Transport Cost in London

The most popular way to get around London is using public transport by either using an Oyster Card or contactless. Having a travel card will allow you to travel freely using multiple modes of transport, bus, tube and national rail.

Depending on how you like to budget you can either opt for contactless or pay for an oyster card for a set period, weekly, monthly or yearly. 

Contactless will charge you per journey until you reach the daily cap and then automatically apply the weekly cap when you hit this spend. 

A popular choice is to get a weekly or monthly travel card. This does really help with budgeting as you can just top up your oyster on payday and not have to worry about travel until your next pay.

Monthly Travelcards 2021
Zones 1–2	£142.10
Zones 1–3	£167.10
Zones 1–4	£204.30
Zones 1–5	£243.10
Zones 1–6	£260.00
Zones 1–7	£283.10
Zones 1–8	£334.10
Zones 1–9	£370.60

Just to note: Weekly travel cards will charge you more admin fees. The longer you buy a travel card the cheaper it is. You can also get a yearly travel card which can save you £300 per year and comes with an Annual Gold Card. The Gold Card gives you 1/3 off certain National Rail Routes.

Instead of buying a travel card I opt for paying as you go. I used to work from home two days a week and don’t always use transport on the weekend. I used to roughly spend about £120 to 150 on travel around London.

However now I work full time from home and now spend nothing on travel. When London starts to open up I see this cost increasing. 

Tip: Considering buying a Railcard as you can save a 1/3 off rail fares. This is great if you plan on weekend trips around the UK, heading to the airport and much more. Make sure you read the terms and conditions before purchasing.

Owning a Car 

Having a car in London you need to consider paying for the following: 

• road tax
• congestion charges
• car insurance
• parking permits
• MOTs – this stands for the Ministry of Transport and the purpose of this is to check the safety, roadworthiness, and exhaust emissions of the vehicles on UK roads.
• fuel

When we had a Ford KA (small two-door hatchback) and paid about £150 for road tax, insurance around £350 and an MOT a year is around £60. 

Alternatively, if you only require a car every so often there are plenty of car rental companies across London. You could consider hiring Zipcar. Zipcar is an American car-sharing company and a subsidiary of Avis Budget Group. Zipcar provides automobile reservations to its members, billable by the minute, hour or day; members may have to pay a monthly or annual membership fee in addition to car reservations charges.

Psst… If you are thinking about getting a car in London here are things to consider.

How Much Do Groceries Cost?

Grocery shopping will vary depending on your tastes, you can be thrifty or highend shopping at organic independents. Shopping at stores like Lidl, Aldi and Iceland will be the cheapest places to buy groceries from. Mid-range stores are Tesco and Sainsbury. The high-end stores are Marks & Spencer and Waitrose.

I generally shop at Tesco’s, Sainsbury and Good Club for my groceries but I have been trying to swap to more local suppliers when I can. 

My weekly food shops have increased due to being home for a year. I tend to spend £100 a week on food shops now as we don’t go out.

The food covers 3 people eating vegetarian with household products (i.e. cleaning products and toilet paper). All my meals included both a lunch and dinner portion which is 14 portions of food a week. 

For monthly budgeting, I would start at £200 a month for a single person and £400 for a couple. This would be shopping at a midrange supermarket covering 2 meals a day and household products. 

Personal Care 

This cost is purely dependent on what your routine is and how much you want to spend. I would add up your current personal care costs and convert this into pounds so you can see roughly how much this will cost you. 

Overall I spend £44.32 per month on general personal care items. 

The biggest cost comes in when we start talking about my hair. Since I switched to having pink hair this has come with a lot of additional costs and I could easily spend £200 a month on this. Yes I know it is a crazy amount to spend but I do really love my hair and I can afford it. 

Healthcare (Prescriptions, Dentist, etc.)  

Even though we pay for the NHS through our taxes there can be some costs associated with healthcare. For example, going to the dentist will have an associated cost for a check-up, teeth clean and other work you may need. If this something you do regularly (which you should) then it is something to factor into your budget. 

Make sure you register with an NHS dentist and not a private dentist as you won’t get the NHS caps otherwise. 

I generally try to go to the dentist every 6 – 12 months for a clean and once a year for a check-up. Teeth cleaning isn’t subsidised so this cost in my experience is from £60 to £100 depending on the clean you opt for. 

For a check-up with an NHS dentist, I pay £23.80. You can see what each NHS dentist band costs here. 

If you have any health conditions, wear glasses or anything else in this bracket then I would add this to your budget. 

As I have migraines I have a set of medication I pay for every 2 months. Prescription costs are capped as well, I currently pay £9.15 for each item. Contraception is free in the UK so there will be no cost associated with this. 

As a minimum, I would budget £100 for dentist visits a year and then add on any prescriptions, eye care or other items you need. 

Entertainment

Entertainment is where all the spare cash can go! Most people I surveyed in 2019 spent between £60 to £100 a week on entertainment (eating out, activities, events etc.). There were a few that were savvy and spent between £40 to £60.

For me, it really depends on the week and what I am doing. I generally allow myself a £200 to £250 spending budget a week depending on what I am doing. I could save money in this area but I do pay for a lot of items that I need to run this website and give you all the information you need when out and about in London.

How Much Does A Meal Cost In London?

Meals can range in price depending on how much you like to eat or drink and whether it is a cheap eats place or Micheline star restaurant in Mayfair. Eating out tends to be where the money goes the fastest.

Here is a rough guide to what to expect:

• Brunch will be around £15 to £20 including coffee.
• Bottomless Brunch will be around £35 to £50.
• Lunch will be around £10 to £20 at a restaurant or Café.
• Dinner can be from £15 to £50.

If you are just picking up a quick bit during your lunch break at work then you can get a cheap Tesco meal deal for £3 or something a bit fancier like Pilpel (falafel) or Barburrito will be around £6.

How Much Does Alcohol Cost In London?

Just like meals, alcohol will range depending on where you decide to go out. To make a night out cheaper make sure you make the most of the happy hours or drink beforehand.

Alternatively, you can find some BYO (bring your own booze) restaurants as well like Tayyab’s but they aren’t as common in London.

Here is a rough guide to what to expect:

• A bottle of average wine in a restaurant will be between £12 to £25.
• A beer in a restaurant will be between £4.00 and £6.00 for a pint. Craft beer will be more expensive than your general lager. If you really love craft beer make sure you check out the Bermondsey Beer Mile.
• Cocktails will be around £8 – £18 depending on where you head out to. As mentioned above bars in London will offer happy hour for example you can get 2 for1 at Be at One for £8-9 or All Bar One half-price cocktails for £4.50.
• Our favourite store wine is a Toro Loco from Aldi for £3.89. Otherwise, around £6 to £8 will get you a good wine in Sainsbury and Tesco. Places like Marks & Spencer will cost upwards of £8.
• Craft Beer at a grocery store is around £1.50 to £3 per bottle or can.

Drinking alcohol in parks and on the street is allowed in London. When the sun comes out or the temperature goes up you will see Londoners flocking to the park with picnics and drinks, it’s truly the way to experience London like a local. It’s a great way of having a cheap day out with friends or family.

Cost For Activities In London

London has a great range of free and paid activities which is perfect as you will always have something available to do no matter what your budget is. Here is a rough guide to what to expect:

• Cinema tickets – £10 to £20 per person. The cinema is not a place I visit very often and tend to stick to Netflix with some wine at home. If you are a movie lover you can get monthly passes for £17.90 making it cheaper to see movies.
• Theatre tickets – £20 to £100 per person. There are some good deals around for Theatre tickets especially if you are not phased where you sit. I have previously scored tickets for £17 to see Wicked and Charlie and the Chocolate Factory. If you are happy to stand for 3 hours you can get £5 tickets to the Globe.
• Museums – mostly free! well at least all my favourite museums are! Here are 9 museums you must visit.
• Sight Seeing – Free to £30 per person plus travel. For example, Sky Gardens is free (find out the local tips with this video), whereas the London Eye would be from £23. Exploring Windsor Castle would require you to buy train and attraction tickets making the day more like £40 to £50 without food included.

Find out all the tips on how to book London attractions and how to save money with this article.

Other Costs 

Don’t forget to add any additional costs you might have like enjoying a good cup of coffee, a monthly Netflix subscription or clothing.

Summary of London Monthly Living Expenses 

To summarise the costs, the core household bills with groceries for 3 people comes to £727.20 and our estimated rent being £1,600 for a 2 bedroom flat then the cost would be £2327.20 a month.

I spend about £117.55 a month on things like personal care, healthcare and mobile phone. 

A grand total of £893.28 as an individual living in a shared flat with 2 other people.

As I am no longer travelling to work that does save me £150 a month and my going out expenses are 0 at the moment. This will go up when more things open up in 2021. 

Here Are Two Hypothetical Examples Of Potential Cost For London

Renting a room in a flat with 2 other people: 

Room Rent*	£728
Core Bills	£109
Groceries	£200
Mobile	£10
Personal Care	£20
Healthcare*	£8
Transport*	£142
Total	£1,217

Renting a property as a couple: 

Rent	£1,572
Core Bills	£327
Groceries	£400
Mobile	£20
Personal Care	£80
Healthcare	£17
Transport	£284
Total	£2,700
Per person	£1,350

All costs are based on what I spend or the averages I have included in this article. It’s just to help guide you on what to think about. *Property rent is based on average spend, healthcare is based on you going to the dentist once a year and transport is based on zone 1-2 monthly travel card. 

More Living in the UK Articles

• Exchanging a Foreign Licence for a UK Drivers Licence
• A Helpful Guide on How to Find a Flat in London
• How to Build a Credit Score as a New UK Resident
• Essentials Items You Need for a New Apartment or Home

Finding a flat in London can be challenging! These helpful tips for renting in London will give you a starting ground on what to look out for. 

When I moved to London, I had never rented! I literary moved overseas and out of home at the same time. I had no idea what to expect when trying to find a place, I was living in a hostel while working full time, with backpackers coming and going for the first 4 months.

This handy moving checklist covers everything from changing over utilities and packing to your first day essential tasks in your new home.

Know the Types of Tenancy/ Renting Arrangements 

If it’s your first time renting in England then it’s important to understand the type of tenancy you have. It will influence the rights you have as a tenant. 

Here are some of the types of tenancies you could come across:

• assured shorthold tenancy (AST).
• excluded tenancy (lodging).
• assured tenancy.
• non-assured tenancy.
• regulated tenancy.
• company let.

Whilst the list seems long you will generally be renting an assured shorthold tenancy (AST). I tend to find that room rental to be either be lodging so living with your landlord or the share accommodation share an AST agreement. 

Assured Shorthold Tenancies (ASTs)

The most common rules for an AST is that:

• the property you rent is private.
• it is your main acoomodation.
• the landlord doesn’t live with you (that would be lodging).
• and the contract started after 1989. 

Excluded Tenancies or Licences (Lodging)

This is for when you live with your landlord so when you share rooms like kitchen, bathroom or living room this is deemed as lodging. With this type of tenancy, you will have less protection for things like eviction. 

Read more about tenancy types here.

Credit Score Can Influence How Much Upfront Rent 

A common problem for new residents is that you have a minimal credit score or work history which could impact how much rent you need to pay upfront. The same applies if you have a bad credit score history. 

Some landlords will request that you provide 3 to 6 months rent in advance to minimise the risk of renting the property to you. This can come as a big shock if you’ve not factored it in your move costs. Overall this is to ensure the landlord has security and you won’t miss payments.

It can be negotiated but it is up to the landlord whether they accept the agreement. Please note that this is not a deposit, it is rent upfront. 

Here are my tips on increasing your credit score as a new resident. 

Rent in London Negotiable

One of the cons of living in London is that the rent is high and sometimes can be up to 50% of your salary. It’s good to research whether the rental market is in a decline or in high demand to see what your negotiation tactics will be but it’s negotiable. This includes: 

• the amount you wish to pay – a good place to start is finding similar flats in the area to get an idea of what they are going for. If you find a similar flat goes for £100 less then see if they would take it like other places are going for x price. 
• Adding furniture (beds, wardrobes etc)
• Repairs
• Break clauses 

When you submit your offer the landlord will respond whether they accept or reject the offer. Rooms to rent are not usually negotiable but houses and flats are. 

Weekly Vs Monthly Pricing 

Properties will either have weekly or monthly rental prices. When the price says weekly be aware that there are not 4 weeks in a month. 

To figure out what the monthly rent would be, use the weekly cost, times it by 52 weeks and then divide by 12. 

For example,

£500 x 52 = £26,000 yearly rent

£26,000 / 12 = £2,166.66 monthly rent

Where to Find Rental Properties 

Starting your hunt for a property will depend on what you are looking for. Here are some recommendations for your search: 

Whole Properties 

Zoopla or Rightmove are the best places to start looking for a home. You will be able to set a budget and property preferences with the search settings.

Private landlords listing their rental properties on OpenRent. The properties will be managed by the landlord rather than an agency. You might not find the property you are looking for on OpenRent as there isn’t as much stock on the website. 

Lets with Pets is a fantastic starting point as you’ll need to find a pet-friendly rental property. 

Sign-up to a few agencies in the area you are searching in some of the common ones are Hamptons, Foxtons, Knight Frank and Savills.

Shared Accommodation 

To save on cost flatshare may be your most affordable option. 

• SpareRoom is one of the go-to websites for finding a flat. It’s free to use but you will have more success with the paid version.
• Check Facebook Groups, Aussies in London, Kiwis in London and many others have weekly flat posts. 
• MoveFlat is another flatshare option. 
• Gumtree, I tend to stay away from this one as it is easier to get scammed.
• Zoopla and Rightmove will also have rooms listed by agents. You won’t get to choose your roommates if you use an agent to get a flat. 

The Underground Isn’t Everything 

Yes, you don’t need to live near the underground. As much as it’s a great transport option, areas by bus or national rail are just as great. In South East London, most of the area doesn’t have an underground due to the clay soil but we still get around fine! 

There are plenty of great places like Crystal Palace, Alexandar Palace, areas of Greenwich and many others that don’t have underground links that are wonderful to live in. 

How to Fend Off the Competition

The rental market in London moves quickly and find a property you like, it’s good to be ready! 

Speak to the agent or landlord to see what kind of information they will need beforehand and that way you are prepared with your paperwork. Plus it will be similar documentation for most properties so it’s effort well spent. Consider taking the documentation to you on the viewing.

Holding deposits are another way you can secure a place. They are now capped at one week’s rent and they are not required to protect a holding deposit in a scheme like the other deposit. 

Once your agreement is signed this either is returned to you, counted towards your deposit or your initial rent. 

Be Careful of Scams

Scams are unfortunately are common when renting in London. You need to keep your wits about you and if something feels off then take a step back. It’s better to investigate than hand over some money to find out someone has run away with it!

I find there are more room renting scams especially on the likes of free listing sites such as Gumtree but they can pop up anywhere! 

A couple of tell-tale points it’s a scam:

• Poorly worded and spelling mistakes in the description of the property.
• The same phone number, email address or contact name appear in different adverts.
• The pricing is unusual for the area.
• When they contact you they ask for a deposit before viewing the property.
• The photos look like they may have been copied from the internet.
• No viewings are allowed.

Overall follow the main principle never give anyone money without seeing the property, especially if they ask you to wire it through Western Union! 

Make a List of Trustworthy Estate Agents

When you start your search it’s a good idea to make a list of agents you would be happy to rent through. Some things to consider checking: 

• Website: Is it professional, branded well? If it’s not scammy then that’s a great start. 
• Reviews: Are there lots of complaints? Do the complaints seem realistic and not someone complaining about something relatively minor. 
• Are they a part of the PTO: Estate agents can sign up to be a part of different associations like The Property Ombudsman (TPO) or Property Mark which is to show their commitment to professional standards. Most agents will have the schemes they are a part of in the footer of their website or you can search on The Property Ombudsman website to see if they are a member. 
• Do they have physical offices? There are some online agents such as Purple Bricks but most agents will have a physical office. Check on Google Maps to see if it is properly branded as this can also come up with scams.  

Understand the Deposits and Fees You Need to Pay

In 2019, England brought in new acts to change the fees and deposits renters need to pay for AST tenancy agreement. This is why it’s important to know the type of tenancy you are entering as it will affect the fees you are paying as I mentioned at the start of the article. 

If you do find someone charges you incorrectly then they can be reported.  

Here are the PERMITTED CHARGES in accordance with the Tenant Fee Act 2019:

• First month’s rent in advance.
• Tenancy Deposit 5 or 6 weeks depending upon the rental amount.
• Holding Deposit maximum one week’s rent.
• Early termination when requested by the tenant a charge not exceeding the financial loss experienced by the landlord.
• Utilities, communication services, TV licence and council tax.
• Default charge for late payment of rent limited to interest charged at 3% above the Bank of England base rate, when rent is more than 14 days late.
• Default charge for replacement of lost key or security device equivalent to cost incurred.
• Changing the tenancy documents after the commencement of the tenancy – this is around £50 with VAT.

The same rules DO NOT apply to a Non-Housing Act Tenancy which is formed when one of the following criteria is in place:

• The annual rent exceeds £100,000 (if only!).
• The property is occupied by an entity (Company let) rather than an individual.
• The property is not used as a main or primary home.
• There is a Resident Landlord.

Understand the Difference Between Being a Leaseholder and Not

There is no difference if you are moving into a room rather than a house if your name is on the lease, you’ll have the same rights.

All tenants are ‘jointly and severally liable’ which means that if one of the other tenants does not pay their portion of the rent then you can be pursued for it by the landlord. 

When Viewing Check for Mould, Water Pressure etc 

Flats in London can come with problems, this can be for various reasons like the age of the property. I currently live in an 1890 building that was converted into flats and due to the age of the building, I don’t have double glazing on the windows. It gets pretty cold here in the winter due to this. 

However, the building is heritage and requires like for like windows. It’s not something we can afford to replace but things like this are something you should keep in mind when viewing properties. 

Some of the common issues I come across is: 

Mould – common in lower ground and ground flats but also in bathroom areas. Recently our bathroom had mould, no matter how much we cleaned it, it kept coming back. Added some new bathroom paint and it’s been great ever since. Something like this might be on your repair list.

Water Pressure – Ok, so a bit of an odd one! Although surprisingly it is quite common for the pressure to be very weak.

In my first apartment, this was a serious issue. The water pressure failed in one of our apartment bathrooms for over a month without being fixed, I ended up spending a lot of time at the gym to shower. Good for my waistline but overall a frustrating experience. 

Check What Break Clauses There Are

A break clause is a provision that can be included in the contract which will allow either party to end the lease early. Unforeseen circumstances could come up and it’s good to understand your break clause in case you need to end the lease in the future. 

You can request a specific break clause when negotiating your lease or there will be a standard clause in your contract which will or won’t allow you to break the lease. 

Check the specific wording of the clause to see the conditions. For example, a 12-month long contract can have a break clause at the six-month point, allowing the renter or the landlord to end the AST after six months.

It may be possible to change tenants within a tenancy and leave with a Section 47/48 Notice but the landlord is not obligated to allow the change and there will be a cost associated.

As a Renter You Pay Council Tax

One of the bills that surprised me when I moved to London was that I had to pay council tax. The cost will change borough to borough and whether you have single occupancy, student, living with multiple people, property type, etc. 

To work out how much council tax will be here.

Wondering how much it may cost you to live in London? Here’s my guide to how much it costs me to live in London. 

Conduct a Thorough Inventory

When you move in you should receive an inventory for the room, apartment or house from the landlord or agent. Check that everything is correct and make sure any amendment is documented with photos.

If the landlord or agent doesn’t have an inventory, then create your own by taking photos and documenting the condition and assets. Ideally, the landlord should sign this inventory.

I was caught out on this, I didn’t realise you needed an inventory and when I left my first flat the landlord decided to charge me £50 for a couch I apparently damaged. It was a white couch! who puts a white item in a share house?! and I lived with 4 other people which could have been anyone. Before I left I made sure I had it dry cleaned so was pretty annoyed about losing my £50. In fairness, it wasn’t a lot of money and was a lot of effort to fight to get the money back.

Ask for Everything in Writing

Any conversation you have with the landlord or agent should be followed up or stated in writing, then you can go back on this at a later stage if you need to.

This goes for anything like landlord or agency wanting to inspect the house to handing in your notice. Any changes in agreements like a change of rent should be included in a contract variation.

Find Out Where Your Deposit Will Be Held

Putting down a deposit can be anything from a few hundred to thousand pounds (of course price range dependent) and you should understand where your deposit is being held.

Your deposit should be protected if you rent a flat under Assured Shorthold Tenancy contract (AST) and kept in a government-approved tenancy deposit scheme (TDP). After the tenancy is finished the landlord has 10 days to return the deposit with deductions agreed by both parties. 

The money will stay in the deposit protection scheme until the dispute is resolved. 

Once the tenancy is established landlord or letting agent need to give you documentation on where your deposit be held as well. 

There is now a Zero Deposit Guarantee which means you no longer have to pay a deposit upfront, instead, these deposit guarantees will request 1 weeks’ worth of rent and a yearly admin fee. You will not get your money back using this method so if your rent is £1,000 a month and therefore, you’d lose around £200 + the admin fee. If there are any damages during the tenancy you will still be liable for these.

Understand How Rent Increases Work

We all get annoyed when the train tickets go up every year by RPI, you should expect the same for your rent. You’ll be at your bank account thinking there is another percentage of my salary gone. In most cases, your agent or landlord will increase the rent each year and is subjected to the market, RPI or both.

Guides and Website to Read Before Renting

How to rent guide is put together by the government and it’s a great checklist of everything you should know when renting in England. 

This is a really useful document for anyone struggling with understanding the new acts and fees you can be charged.

Citizens Advice – provides free, independent, confidential and impartial advice to everyone on their rights and responsibilities. They will be able to help you understand your contract, issues with break clauses, the condition of the property and much more.

Shelter – housing and homelessness charity that offers advice and support.

Happy future renting!