Cost of Living in London
The average private rent in London was £2,338 a month in September 2026, up 3.5% on a year earlier and the highest of any English region, according to the ONS. A Zones 1 to 2 monthly Travelcard costs £171.70, and the average Band D council tax is £2,068 a year.
Rent is the largest cost of living in London. This page sets out official private rents for London and its boroughs, public transport fares from Transport for London, and council tax for 2026/27. The ONS does not publish a separate consumer price index for London, so there is no official London inflation rate.
Average private rents in London boroughs, September 2026
Transport fares, council tax and house prices in London
What these costs mean
Rents vary a lot across London. In September 2026 the average was £3,739 in Kensington and Chelsea, the highest of any local area in the UK, and £1,540 in Bexley. London rents rose 3.5% over the year, below the UK rise of 3.8%. At the London average, a year of rent comes to £28,056, or 56% of the median full-time salary for jobs in London. Travelcard prices were frozen in March 2026, while Tube pay as you go fares rose. Bus and tram fares went up from £1.75 to £1.85 on 1 November 2026. Council tax depends on the borough and the property band: the London average for Band D is £2,068 a year, including £511 for the Greater London Authority, and Wandsworth's £1,028 is the lowest in England.
Setting pay for a London hire
Candidates in London weigh rent and travel costs when they compare offers. Check pay levels on our average salary in London page, and employer costs in our London guide and guide to hiring in the UK. Need help with the search? We find, screen and shortlist remote professionals across Europe and the UK, with 3 candidates within 21 days. See how placement works.
This is general information, not legal or tax advice. Rules change and collective agreements can set different terms. Confirm with a local accountant or lawyer before you hire.
Frequently asked questions
What is the average rent in London?
£2,338 a month in September 2026, according to the ONS Price Index of Private Rents. That was 3.5% more than a year earlier.
Which London borough has the highest rent?
Kensington and Chelsea, at an average of £3,739 a month in September 2026. It is also the highest of any local area in the UK.
How much is a monthly Travelcard in London?
£171.70 for Zones 1 to 2 and £201.60 for Zones 1 to 3, at 2026 TfL prices. An annual Zones 1 to 2 Travelcard is £1,788.
How much is a bus fare in London?
£1.85 for a single pay as you go bus or tram journey from 1 November 2026, with a daily cap of £5.55.
How much is council tax in London?
The London average for a Band D home is £2,068 a year in 2026/27, including the Greater London Authority precept, according to MHCLG. The England average is £2,392.
Sources
- ONS, Private rent and house prices, UK: October 2026. Checked 3 Nov 2026.
- ONS, Housing prices in your area (local authority pages). Checked 3 Nov 2026.
- TfL, Adult rate prices 2026. Checked 3 Nov 2026.
- GLA, MD3464 March 2026 Transport for London fare changes. Checked 3 Nov 2026.
- GLA, MD3464 annex, fares tables. Checked 3 Nov 2026.
- GLA, MD3517 July 2026 fare changes. Checked 3 Nov 2026.
- MHCLG on GOV.UK, Council Tax levels set by local authorities in England 2026 to 2027. Checked 3 Nov 2026.
- HM Land Registry, UK House Price Index Summary: August 2026. Checked 3 Nov 2026.
