Doesn’t make too much sense, does it?
But when you take into consideration the added expenses that come with living in London, you might just be better off living elsewhere in order to hold on to more of your hard-earned cash.
It’s at odds with the city being trumpeted as the hub for the British economy – especially where the tech industry is concerned.
Indeed, a study by Boris Johnson’s London & Partners department found in September that London has over 71,000 developers – the most in the world, and a number that’s expected to continue growing.
Although, based on research from CV-Library, workers may want to flee to Aberdeen.
The job site has discovered that, while professionals working in the city of London earn an average salary of £36,905 – 16.6 per cent more than the national average of £31,625 – premium costs in the area result in low disposable income.
As a result, those in Scotland and the North East are actually the richest.
See below the full results of richest to poorest UK workers, based on remaining monthly income after living costs, which comprise rent (small, one-bed flat, located close to the city centre), relevant council tax, a local monthly travel card, basic utility bills and groceries.
Average Monthly Salary Basic Monthly Costs Remaining Income
£2,230 £917 £1,313
£1,993 £862 £1,131
£2,015 £891 £1,125
£2,040 £921 £1,119
£2,025 £914 £1,112
£2,014 £919 £1,095
£2,019 £924 £1,095
£1,995 £953 £1,042
£1,936 £951 £985
£1,991 £1,035 £957
£1,816 £864 £952
£2,145 £1,207 £937
£2,013 £1,167 £846
£1,822 £1,040 £783
£1,826 £1,348 £478
£2,349 £3,313 -£964
It means that Londoners who desire the same living standards as counterparts living in different parts of the country will end up in debt or have to accept compromises, according to the study, despite being well paid.
Rubbing salt in the wounds for London’s workforce, the study showed the cost of a one-bed flat in Hull is just £72,486 – this rockets to £544,118 in the capital. And when looking at salaries in the two cities, Londoner’s only earn 32.7 per cent more.
Adding further context, a professional in Hull would need to spend 18.1 per cent of their salary for a mortgage, while a Londoner would need to part with 105.5 per cent, putting them in the red before they’ve even considered a food shop.
Read more on salaries:
- Stay exactly where you are – advertised salaries are in “spectacular” decline
- Self-employed seeing some of the biggest salary increases in UK
- 5.5m UK employees prepared to exaggerate salary by £4,000
“It’s not unreasonable for a UK working professional to want to come home to their own space at night. As employees, it’s advantages such as these that motivate and inspire us to do well,” said Lee Biggins, founder and managing director of CV-Library.
“However, living premiums mean that this isn’t a reality for most workers in the capital and the idea of getting on the property ladder is a pipe dream, despite working hard. The fact that Londoners struggle to afford the bare essentials is worrying and may well affect the number of professionals that choose to work in the city; other cities are starting to appear as much more appealing prospects for UK workers.
“Wages and living expenses in London are not relative to the rest of the UK, making Londoners the poorest workers in Britain.”
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