Moving to London on a budget: 3 ways to save money on your move
💷 Moving to London from abroad is expensive, here are 3 guaranteed ways to save money during your move.
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Moving to London doesn't have to break your bank account. By implementing these three money-saving strategies, you can reduce expenses and make the most of your move to the city. With a little planning and resourcefulness, you can navigate your move to the city while keeping your budget intact.
The costs of moving to London
Moving to London is an exciting prospect, but it's important to be aware of the costs involved in such a big relocation. The capital city of the United Kingdom is known for its vibrant culture, diverse neighbourhoods, and endless opportunities. However, it's no secret that moving to and living in London is expensive. Immigration, housing, transportation and expenses, there are many financial aspects of moving to London.
Immigration 🛂
Whether its visa application fees or passport renewals, immigration is an expensive part of any moving to London journey. Visa fees (with the healthcare surcharge included) generally cost in excess of £2,000, not to mention you need to show savings of a further £2,500 as part of your application.
Short-term accommodation 🏠
When you first move to London chances are you won't have somewhere to live, this means you will need to find temporary accommodation to stay in while you hunt for a more permanent flat. Options include:
- Hotels and Air BnBs (£££)
- Hostels (££)
- Staying with friends or family (£)
Long-term accommodation 🏡
Finding a flat in London comes at a cost. Rent is taken monthly and most landlords or letting agents will require a 1st months rent and a rental security deposit of 1.5months. If you don't have a job yet, you may be asked to pay more up front to cover the landlord's risk that you might not be able to afford rent if you remain unemployed.
Flights ✈️
Your airline ticket to London is also going to be a significant cost. Especially if you're coming from further away. Airline travel has skyrocketed since the COVID-19 pandemic with prices increasing by as much as 80%.
Insurance 💳
Travel insurance is a must have to make sure you are ready for the unexpected. Although you're moving to London, you will be able to take out a travel insurance policy from your home country to cover your time abroad.
Travel and entertainment ✨
Once you land in London you're going to want to make the most of your new city. London is one of the best cities in the world for entertainment; pubs and clubs, West End theatre, Premier League football, you name it.
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3 ways to save money on your move to London
Here are 3 of our favourite ways to help you save hundreds of pounds on your move.
1. Buy flights early and in off-peak months 🛬
Generally, the further in advance you can pick a date and buy flights the cheaper the cost of those flights will be. When moving to London from abroad, flights will be one of your biggest expenses. Especially if you're moving from somewhere down under like Australia or New Zealand.
Flight costs also vary drastically depending on the time of the year you are moving. Costs for flights to London peak during Christmas/New Year (mid-December to mid-January) and UK summer (June-August). If you can fly to London outside those peak months it will generally save money on airfares.
2. Reduce your short-term accommodation costs 🏡
If you have friends or family in London, it can be a great idea to stay with them helping you save money on expensive short-term accommodation costs. Obviously this strategy only works if you know people in London. If you are staying with friends or family, make sure you take them for a night at the pub to say thank you.
If you don't have friends and family in London who you could stay with, you can reduce your short-term accommodation costs by:
- Staying in areas further out from the centre of the city (eg. zone 4-5)
- Opting for shared accommodation such as hostels over Air BnBs
- Looking in community groups like Kiwis in London for short-term sublets.
3. Monitor the exchange rate with app notifications 📈
Currency exchange rates can fluctuate on a daily basis due to various economic factors. The extent of the fluctuations depends on the currencies. In some cases, exchange rates can experience significant movements within a short period, especially during periods of heightened economic uncertainty or major global events.
For example, comparing the Aussie dollar (AUD) to the British pound (GBP) exchange rate between January 1, 2021 and January 1, 2022:
- High = 0.604
- Low = 0.521
This means if you transferred $10,000 AUD at the high point it would give you £6,040 GBP, or if you transferred the same $10,000 at the low point it would give you £5,210 GBP, a difference of £830 GBP (the cost of a one-way flight from Sydney to London).
Whilst nobody knows what the exchange rate is going be and it's very hard to time for the best possible point, you can set up alerts with the XE Currency app that tell you when the exchange rate is looking favourable. Once there is a more favourable exchange rate, it's a good time to transfer.
Additionally... Get help from Migrate 💛
For just £25 Migrate will make your move to London easy. Our platform will help guide you step-by-step through the moving to London journey and ensure you keep as much money in your wallet as possible. Our mission is to make immigration easy so that you can focus your time and attention on the adventure.
