London remains the most popular spot for Kiwis looking to experience life overseas – despite the cost of living crisis hitting hard in both the UK and New Zealand in recent years.
So is the grass greener or are you better off staying home?
1News Europe Correspondent Kate Nicol-Williams looked at costs in the British capital and in New Zealand’s largest city, Auckland, to find out.
UK and NZ’s costs compared – Watch on TVNZ+
After landing in the Big Smoke, finding somewhere to live and landing a job are top of the list of requirements. And you’ll quickly find there are significant differences in rent prices and potential income.
Rent
Rent costs vary considerably based on how centrally you want to be based in London, how many people you’ll share the rent with and the quality of your property.
But whatever you choose, living in the UK’s most populated city isn’t cheap with London rents the highest in England. Rent is generally paid monthly and costs on average £2260, according to the Office for National Statistics. That’s the equivalent of $1303 per week.
In Auckland, MBIE reports the average weekly rent is significantly cheaper at $626.
In London, the council tax is another rent cost to consider. It’s the equivalent of homeowners paying rates in New Zealand to fund local services. Whereas landlords generally cover rates in NZ, tenants pay the council tax in Britain.
Going off the ‘D’ band, which is the standard measure used to set the council tax, the average yearly tax on London property is nearly $4573 – that’s about $88 extra a week on top of your rent.
Income
While rent going out is higher in London, there’s usually more money coming in. Weekly earnings for full time workers in London are $2210 on average. In Auckland it’s considerably less at $1554.
So the gains and the losses start to even out.
Transport
London has one of the largest public transport networks in the world. Part of your initiation will be squeezing your way onto a packed underground tube as one of up to five million daily passengers.
The highly effective system comes at a greater cost than getting around in New Zealand.
A train from Waitematā Train Station in central Auckland to Panmure Station, a distance of 12.7km by motorway, costs an adult $4.65 and takes 17 minutes for the evening commute home.
We looked at a similar distance route in London. An adult fare from central London’s Charing Cross Station to Walthamstow Central underground station, a distance of 13.5km by road, is $11.19. This will take 37 minutes in the evening rush and require catching a bus then a train.
Everyday costs
Prices for goods and services are on the rise, causing concern for residents in both parts of the world.
Inflation measured through the consumers price index has dropped since the 2022 peak in both the UK and Aotearoa, but the cost of everyday essentials is still rising, just more slowly.
Prices rose by 3.8% in the year to September 2025 in the UK, while in New Zealand inflation was a little less at 3% during the same period. The New Zealand Government’s target for inflation is 1% to 3% in the medium term, with a longer term target of around 2%. The UK is well beyond its government’s 2% target.
Supermarket shopping
We compared the price of a basket of groceries at Woolworths in New Zealand and at Tesco, a large-scale store in the UK, finding it’s one area you’ll find some spending relief in London.
Berries at all times of the year in British supermarkets is another plus.
The shop included 500g butter, one litre of milk, 600g bread, 500g cheese, one kilogram of bananas, around 450g pork sausages and 500g of penne pasta. The unit price was used to calculate product costs where the weight differed between supermarkets.
The total shop came to $34.08 at Tesco and $40.79 at Woolworths. Butter and cheese were the only products that were cheaper in New Zealand, with 500g of butter $8.49 at Woolworths compared to $9.18 at Tesco. A 500g block of cheese cost $9.37 at Tesco, compared to $8 at Woolworths.
The bananas were just over $2 for a kilogram at Tesco, compared to $3.65 at Woolworths, while the pork sausages at Tesco were $4.15, much less than the $8.50 at Woolworths.
Flat white
And then there’s the all-important coffee.
If you thought a flat white back home was steep at $5.50 in central Auckland, the price for a cup of coffee in the London suburb of Clapham is $7.84.
Extra costs
There are some additional costs in the UK which don’t have to be budgeted for in New Zealand. One being the cost for a TV licence, which is nearly $403 per year. You can’t watch live TV, or a livestream on Youtube or Netflix, without paying for a licence. Most of the funding from this goes towards the creation of BBC TV, online and radio content.
And, unless you don’t mind the taste of London’s chalky hard water, you’ll also be shelling out for a filtered water jug and replacement filters. The minerals aren’t harmful to your health but they affect everything from scummy cups of tea to your washing not feeling as clean as in New Zealand. Some people buy shower filters too.
Upsides of the London OE
Costs aside, London is still regarded as one of the best cities in the world with lots of events and opportunities to make the most of life on the other side of the world.
A big plus for Kiwis is the ease and comparative affordability of travelling to the rest of Europe, like return flights from London to Copenhagen for $127 in January. International travel is an area in which New Zealand just can’t compare.
* All costs were collected on October 28 and UK prices were converted based on the exchange rate to the New Zealand dollar that day.
Kate Nicol-Williams explains the cost of living in London – watch on TVNZ+
