Guide For Living Abroad In The UK

Before applying for a visa to live in the United Kingdom, make sure you’ve planned for the essentials. Make sure you know the cost of living, visa requirements, and how to access healthcare. This guide will cover these basics for expats, digital nomads, and retirees headed to the UK.

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Thinking of heading to the United Kingdom? You’ll want to read our guide. It’s brimming with helpful information and compares the cost of living in the United Kingdom to living in the United States!

In our guide, we’ll compare the cost of living in major budgeting categories. We’ll also provide an overview of visa applications and retiring in the UK. Make sure you’re prepared for your international adventure!

Living Abroad In The United Kingdom

London's Houses Of Parliament View

Applying for a visa is a long and expensive process, so make sure you know what to expect if you relocate. Make sure your income will meet your needs by comparing the costs of major budgeting categories like housing, food, and transportation.

For more information about living abroad, check out our article about moving abroad. You’ll get more handy tips and important information to prepare you for moving outside of the United States.

To plan for your adventure in the United Kingdom, research the best places for expats in the UK.

Cost Of Living In The UK Vs. USA

The cost of living in the United Kingdom is 18% less than in the United States. You’ll spend more on utilities and transportation in the UK, but experience savings on rent and groceries. The exact cost of living differences depends on your current location in the USA and the destination in the UK.

Housing Cost Comparison UK Vs. USA

Renting in the United Kingdom tends to be cheaper than renting in the United States. However, you can expect to spend more on purchasing property in the United Kingdom. Although current interest rates are lower in the UK, property is typically much more expensive.

Here are some helpful comparisons from recent crowd-sourced rental price data to give you an idea of the average rental cost differences USA-wide compared to in the UK.

For rent on a cheap, one-bedroom apartment in the city, you may save around 26% on rent.
Comparing the average rent for a one-bedroom apartment, you may save around 20%.
Rent for a three-bed apartment in the city is about 17.6% cheaper, on average, in the UK.
The average rent on a cheap three-bedroom apartment is 21.3% lower in the UK.

The current interest rate for a 20-year mortgage in the United States is over 5 percent but under 3.5 percent in the United Kingdom.

Buying a condo in the city is 49.8% more expensive, on average, in the UK.
Buying a house in the suburbs is 39.7% more expensive in the UK.

Internet service is more expensive in the United States than in the UK. For other utilities, expect to pay a bit more in the UK than in the USA.

Food Cost Comparison UK Vs. USA

View Of London's Iconic Tower Bridge

In general, food in the United Kingdom is less expensive than food in the United States. Many items are almost twice as expensive in the USA as in the UK! Restaurants in the United Kingdom also tend to have lower prices than in the United States.

Since everyone’s shopping list looks a little different, we’ll offer a snapshot of the price comparison on several popular grocery staples from crowd-sourced data.

Average savings of 60.4% on white bread in the UK.
Average savings of 58.5% on a pound of white rice.
Eggs are 42.3% cheaper in the UK on average.
Savings of 26% on a pound of beef in the UK on average.
Expect to spend 22.5% more on milk in the UK on average.
Average savings of about 50% on apples and oranges in the UK.
Savings of about 50-55% on vegetables like potatoes, onions, and lettuce in the UK.

Transportation Cost Comparison UK Vs. USA

Transportation costs in the UK tend to be more expensive than transportation costs in the USA. A monthly pass for local transportation costs 41.5% more in the UK than in the USA. The most recent crowd-sourced data also shows that gasoline can be almost twice as expensive.

The great news for expats is that you won’t have to rely on expensive airline tickets to explore Great Britain!

Traveling by train is more common in the UK. Their railway is more practical than what’s available for travel in the US. You can take a train rather than an airplane to cross the country affordably.

Salaries In The United Kingdom Vs. USA

Salaries in the UK are comparable to salaries in the USA. In the United States, a person can afford 1.9 months of expenses on their after-tax income compared to the cost of living. In the United Kingdom, salaries after taxes can cover 1.6 months.

That means your purchasing power is a little higher in the United States but by only about a week’s worth of expenses.

Is The United Kingdom Expensive To Live In?

London Skyline Featuring City Hall And Shard

The United Kingdom is considered a less expensive country to live in compared to the United States. In the UK, it’s estimated that the quality of life is a little better than what you’d find in the US.

The UK has a high-quality education system, and the average life expectancy is three years longer than in the United States due to its healthcare system and healthy habits.

Healthcare In The United Kingdom

Many citizens of the United Kingdom use the National Health System (NHS). This is a publicly funded system for residents and citizens. The United Kingdom also has a stellar private healthcare system available for expats or anyone who wants access to the private system.

To avoid long waitlists and secure care, many residents and citizens use the advanced and competitive private healthcare system in the United Kingdom.

To make sure you’re covered as an expat in the UK, secure private health insurance.

Living In The United Kingdom As An American

London's Big Ben And Bridge At Night

There are a number of things that any expat has to adjust to in a new country. As an American in the United Kingdom, be prepared to make adjustments in measurement, currency, or habits to acclimate to your surroundings.

Here are some differences to be aware of:

The UK uses different units of measurement than what we typically use in the United States. The United Kingdom uses the metric system: meters, liters, grams, etc…
In the UK, cars drive on the left side of the road, and the steering wheel or driver’s side is on the right side of the vehicle.
The currency in the UK is the Pound sterling (GBP). The bills and coins are different divisions than in the United States.
It’s rare to have light switches or outlets in bathrooms in the UK.

Since more of the United Kingdom speaks English than the United States, you will encounter only minor language barriers. The vocabulary, vernacular, and accent are all different in the United Kingdom, so there will be some adjustments.

Cultural Adjustments For Americans In The UK

Even though the UK and the USA have a lot in common, there are some cultural differences than might surprise Americans. Different traditions and expectations may take you by surprise, but knowing what to expect will help you adjust as an expat.

Autumn is less celebrated in the United Kingdom. Many of our traditions for Autumn don’t exist in the UK.
Pub culture in the UK is different than in the US, and not buying a round of drinks is considered rude.
Although they don’t have as many Halloween traditions in the UK, they do celebrate Guy Fawkes Day in November.
Vocabulary for ordering tea and coffee is very different in the UK.

Retiring In The UK From The USA

If you wish to retire in the UK from the USA, you will have to plan ahead and get a work visa in the UK. Many of the United Kingdom’s visa programs that made retiring in the UK accessible to Americans are closed to new applicants.

For example, the United Kingdom has closed applications for their popular retirement visa. The also popular Investor visa has also been closed to new applicants.

Retiring in the UK as a US citizen does not automatically grant you any access to public benefits or pension programs in the UK.

Moving To The UK From The USA

Buckingham Palace, London View

To move to the UK from the USA, you will have to obtain a work visa or a student visa for your time in the UK. Work visas are generally available for US citizens who have high-demand skills. There are also student visas available for a maximum of five years with a few exceptions.

There are a number of options for work visas in the UK. Some of these visa will require a job offer, but not all of them do.

Visa Requirements For US Citizens In The United Kingdom

Visa Requirements will include identity documents and proof that you can support yourself and expenses while in the UK. There will also be a healthcare surcharge each year you’re in the UK. Visa applicants cannot apply for public benefits in the UK.

Each type of visa has a different list of requirements. Check the type of visa you’re considering for a more exhaustive list of requirements and fees.

Although few Americans will meet the criteria, you may see if you are eligible for a UK ancestry visa.

Conclusion

Now that you’re more prepared to live in the United Kingdom, your adventure abroad is that much closer to reality! You’ll enjoy a high quality of life with a lower average price tag than living in the United States. With the right work or student visa, you can enjoy many years in the United Kingdom.

If you’d like to consider other options for countries to relocate to, check out our guides for living in Sweden or Poland!

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Jantra Jacobs

Senior Copywriter at Pacific Prime

Jantra Jacobs is a Senior Copywriter at Pacific Prime with over 10 years of writing and editing experience. She writes and edits a diverse variety of online and offline copy, including sales and marketing materials ranging from articles and advertising copy to reports, guides, RFPs, and more.

Jantra curates and reports on the results of Pacific Prime’s monthly newsletters, as well as manages Pacific Prime’s Deputy Global CEO’s LinkedIn posts. Complemented by her background in business writing, Jantra’s passion for health, insurance, and employee benefits helps her create engaging content – no matter how complex the subject is.

Growing up as a third-culture kid has given her a multicultural perspective that helps her relate to expats and their families while 8 years of working remotely have given her unique insight into hybrid work arrangements and enthusiasm for employee benefits.