London vs Tokyo: Cost of Living Comparison 2025

London

United Kingdom

vs
Tokyo

Japan

Comparing the cost of living between London, United Kingdom and Tokyo, Japan reveals significant insights for anyone considering relocation or travel in 2025. Our comprehensive analysis shows that London is more affordable than Tokyo by approximately 5.3%. This comparison covers essential living expenses including housing, food, transportation, and utilities, providing you with a complete picture of what to expect financially in each city.

Key Cost Differences

  • Housing costs in London are higher than in Tokyo by 13%. A one-bedroom apartment in London's city center costs around £2,500, while the same in Tokyo is approximately ¥180,000.

  • Dining out in London is notably more expensive compared to Tokyo. An inexpensive restaurant meal costs £18 in London versus ¥1,000 in Tokyo.

  • Public transportation in London is more affordable, with monthly passes at £180 compared to ¥10,000 in Tokyo.

  • Grocery shopping in London is more affordable by approximately 27%. Basic items like milk, bread, and eggs show lower prices across the board.

Overall Cost of Living

-5.3%

cheaper

Rent

-11.8%

cheaper

Restaurant Prices

-36.8%

cheaper

Groceries

+37.5%

more expensive

Monthly Budget Breakdown

When breaking down monthly expenses, a single person in London can expect to spend approximately £716 per month (excluding rent), while in Tokyo, the same lifestyle would cost around ¥63,000. For families, these figures increase significantly, with a family of four requiring about £2,505 monthly in London versus ¥220,500 in Tokyo. These estimates include groceries, dining out, transportation, utilities, and entertainment, providing a realistic picture of day-to-day living costs in each city.

Detailed Cost Comparison

🏠 Housing Costs (Monthly Rent)

1BR City Center
£2,500
¥180,000
1BR Outside Center
£1,800
¥100,000
3BR City Center
£5,500
¥400,000

🍽️ Food & Dining

Meal, Inexpensive Restaurant
£18
¥1,000
Meal for 2, Mid-range Restaurant
£80
¥6,000
Cappuccino
£4
¥450
Domestic Beer (0.5L)
£6
¥500

🛒 Groceries

Milk (1L)
£1
¥200
Bread (500g)
£2
¥250
Eggs (12)
£3
¥300
Cheese (1kg)
£10
¥2,000

🚌 Transportation

One-way Ticket
£3
¥200
Monthly Pass
£180
¥10,000
Taxi Start
£4
¥730
Gasoline (1L)
£2
¥170

💡 Utilities & Internet

Basic Utilities (85m²)
£200
¥20,000
Internet (60 Mbps)
£35
¥4,000
Mobile Minute
£0
¥40

Tips for Moving Between Cities

For those considering a move from Tokyo to London, the cost savings can be substantial, particularly in housing and daily expenses. However, it's important to factor in salary differences and job opportunities. Conversely, moving from London to Tokyo requires careful financial planning. Consider negotiating salary adjustments that reflect the higher cost of living, and research neighborhoods outside the city center for more affordable housing options while maintaining reasonable commute times.

Quality of Life Indices

London

Cost of Living Index95
Rent Index85
Purchasing Power Index90

Tokyo

Cost of Living Index90
Rent Index75
Purchasing Power Index95

Frequently Asked Questions

Is London more expensive than Tokyo?

No, London is approximately 5.3% cheaper than Tokyo. You'll find significant savings in housing, food, and transportation costs.

How much salary do I need in London compared to Tokyo?

To maintain the same standard of living, you would need approximately 95% of your Tokyo salary when living in London. For example, if you earn $50,000 in Tokyo, you'd need about $47,500 in London for a comparable lifestyle.

What are the biggest cost differences between London and Tokyo?

The most significant cost difference is in dining out. Restaurant prices vary by about 58%, which can significantly impact your entertainment budget. Transportation and utilities show notable variations between the two cities.

Which city is better for expats and digital nomads?

Tokyo offers better purchasing power, making it more attractive for those earning in strong currencies. However, London provides lower living costs, which benefits budget-conscious travelers. Consider London if you prioritize cultural experiences, or Tokyo for better value.

What's a reasonable monthly budget for London vs Tokyo?

In London, a single person needs approximately £2,516 per month (including rent), while a family of four requires about £6,005. In Tokyo, these figures are ¥163,000 for singles and ¥470,500 for families. These estimates include housing, food, transportation, and basic entertainment.

The cost of living comparison between London and Tokyo in 2025 shows moderate differences across various expense categories. Whether you're planning a relocation for work, considering retirement options, or simply curious about living costs, understanding these differences is crucial for making informed financial decisions.

Need to calculate salary equivalence?

Find out how much you need to earn in Tokyo to maintain your lifestyle from London

Calculate Salary Equivalence

Last updated: 2025-01-15