1. CITY SYNOPSIS:
LONDON
Londoners, more than any
group, could argue with
New York’s status as the
Capital of the World. For
decades, London has been
a hub of internationalization
and economic vitality, and it
remains one of the world’s
remarkable cities to work
in and visit. It is a delightful
collision of modernity and
history, and even lifelong
residents are unable to
explore it all.
With its origins stretching
back to the Roman Empire,
London provides visitors with
a storybook experience in
history, the arts, economic
development and world affairs.
And it provides assignees with
an extraordinarily diverse and
vibrant economy in which to
work and live.
ABOUT LONDON
FACTS
>> Country: England
>> Population: 8.5 million
>> Climate: Temperate, with mild
seasonal temperature variations and
moderate-to-high precipitation
>> Languages: English
>> Industries: Finance, tourism,
entertainment, healthcare, media and
communications
>> Nickname: The Big Smoke
>> Dominant modes of transport:
Subway, rail, taxi, buses, walking
ECONOMIC TRENDS
London is highly internationalized, and it
remains the financial center for the Eurozone.
The city experienced great change and growth
in the financial services sector following the
“big bang” – the deregulation and liberalization
of the financial markets in the 1980s. This
resulted in a reshuffling of the financial sector,
expansion and increased internationalization.1
The city suffered during the recent worldwide
economic crisis, partly due to its close
connectivity to other hobbling economies
throughout Europe, but it has rebounded. City
officials are planning for robust growth in the
coming decade, as London shows signs of
outpacing other European cities.2
London’s finance industry can overshadow
its other economic strengths, but there are
plenty of robust sectors including media and
communications, transportation, technology,
tourism and construction. Like most leading
economies, London is highly diversified overall
and caters to visitors and business people from
around the globe.
GETTING AROUND
Most assignees will quickly become familiar
with the London Underground, also known
as the Tube. The world’s oldest rapid transit
system, the Tube serves 1.3 billion passengers
per year.3
It is the preferred mode of transport
for many Londoners, including many commuters
coming into work from the suburbs, and it is one
reason why many forego owning a car.
Another reason is the notorious congestion
throughout London’s maze of streets. This is one
situation where the city’s long history works
against it, since many roadways were mapped
out according to topography well before the
advent of good traffic planning. In 2003, a stiff
congestion charge was implemented to deter
drivers from venturing into central London
during peak business hours.4
Another fondly regarded component of London’s
transportation infrastructure is its fleet of
black cabs. These taxis are driven by men and
women who have passed a rigorous test of
street knowledge; they can take passengers to
virtually any of the city’s nooks and crannies
by memory, and they often share historical
anecdotes along the way. Cheaper, mini cabs
are also available – though they aren’t as
historically satisfying.
Other useful transportation options include
walking – London is a pedestrian-friendly
city – commuter boats, buses and an overland
DLR service.5
Many residents rely on the Oyster
card, which is a near-universal payment card
that works on city-funded transportation modes.
Users can add money to their Oyster card online
or at stations.6
QUALITY OF LIFE
Courtesy of its great diversity and economic
strength, London is a pleasant and invigorating
place to live. Culinary options and cultural
experiences are virtually infinite, as are
historical exhibits and museums. The many free
festivals and events offered throughout the year
provide excellent entertainment for the whole
family – as well as a reprieve from the city’s
high cost of living.
London’s gray skies and rain are notorious and
can deter some during their pre-assignment
visits. The gloomy weather is steadiest in
the autumn and winter, though summers are
1 “The Future of the City of London’s Economy.” The City of London
Corporation, 2015.
2 Ibid.
3 Transport for London. “Facts and Figures.” https://tfl.gov.uk
4 Transport for London. “Congestion Charge.” https://tfl.gov.uk
5 Expatarrivals.com. “Getting Around in London.”
6 Transport for London. “Oyster.” https://tfl.gov.uk
2. often pleasant and sunnier. Temperatures are moderated throughout the
year. Locals note that the rain and sunshine make for stunning parks and
gardens, which are always popular escapes.
HOUSING
London’s residential market is imposing. Finding housing in central London
can be a challenge for all but the most financially well-off assignees, but
in general, housing is available to match a wide range of preferences and
budgets. One saving grace for assignees, of course, is the transportation
system. City planners continue to watch the area’s growth and plan ahead
for transporting a steadily growing population to and from work.7
London is diverse, and many assignees enjoy the thrill of living near
people from different backgrounds. It is, however, possible to find
small communities of expatriates from the same regions of the world.
International visitors can purchase property, but London’s housing prices
are among the highest in the world.8
One popular reference for assignees suggests grouping London’s
neighborhoods according to subway stops. Zones 1 and 2, for instance,
represent central London and are likely to have the highest rental and
purchase prices – and the smallest living spaces. Outside that, zones 3
and 4 are more suburban but still expensive, while zones 5 and 6 are the
least costly but can take an hour or more to reach from central London.9
As is the case with many large cities, assignees will need to evaluate
their tolerances for price and access for the right balance. Fortunately,
this is an enormous market with many options available for relocation
management company (RMC) clients’ assignees.
COST OF LIVING
London is expensive, as are most cities of its size, but living costs are
scalable depending on personal preference and budget limitations. Prices
on goods and services generally decline outside the center. Transportation
costs depend on the mode chosen, but even public transportation fares
can add up quickly. Most find that it’s wise to purchase discounted weekly
or monthly travel cards.
Happily, assignees with temporary residency are eligible to send their
children to local schools instead of depending on costly international or
private schools, and this can ease budgets greatly.10
Some, of course, opt
to pay the tuition of more exclusive schools throughout the London area.
Assignees are also eligible to use the National Health Service, which
can be another enormous cost-saver. Medical care is free to all British
citizens and visitors from countries that have reciprocal arrangements
with the British government. Private insurance is available, of course, and
those who can afford it will likely find that private providers offer a better
patient experience and shorter wait times.11
Unsurprisingly, the biggest budget item for assignees tends to be rent.
A one-bedroom apartment in the city can approach 2,000 GBP ($2,883
USD) per month,12
and some residents are surprised by high utility costs
and local taxes. As with many destinations, the RMC and employer
are wise to properly set expectations so assignees can be prepared
to explore a range of options.
See Figure 1 for a list of everyday items and prices in London. See Figure 2
for a comparison of London’s cost of living compared to New York City,
which ranks at 100.
FIGURE 2: PRICE OF COMMON ITEMS IN LONDON13*
USD EUR GBP SGD
Single meal at an
inexpensive restaurant
$21.35 19.35 € £15 $29.44
Bottle of wine $11.38 10.32 € £8 $15.70
One-way
transportation ticket
$3.56 3.32 € £2.50 $4.91
Pair of sport shoes $89.09 80.76 € £62.61 $123
One-bedroom city
apartment (monthly rent)
$2,376 2,154 € £1,670 $3,277
Imported beer
at a restaurant
$2.32 2.10 € £1.63 $3.20
*Note: current currency conversions reported on March 9, 2016.
FIGURE 3: COST OF LIVING IN LONDON COMPARED TO NEW
YORK CITY14
Consumer price index 92.87
Rent index 84.29
Groceries index 73.14
Restaurants index 99.58
Consumer price plus rent index 88.78
Local purchasing power 90.36
ADDITIONAL RESOURCES
Graebel Special Report: The Next Wave of Europe’s Digital Economy
Graebel Special Report: Cutting Cumbersome Red-Tape in UK Rentals
Graebel Mobility Study: United Kingdom
7 “The Future of the City of London’s Economy.” The City of London Corporation, 2015.
8 Expatarrivals.com. “Accommodation in London.”
9 Ibid.
10 Expatarrivals.com. “Cost of Living in London.”
11 Ibid.
12 Numbeo. www.numbeo.com. March 11, 2016.
13 Numbeo. www.numbeo.com. March 9, 2016.
14 Ibid.
