COST OF LIVING · 2026
London vs Sydney: cost of living compared
Australia is a perennial favourite for Britons chasing sunshine and a higher quality of life — but is Sydney actually cheaper than London? On the numbers, yes: overall living costs are roughly 13% lower than London once rent is included, with much cheaper housing and transport, though your weekly grocery shop will cost more. Here's the 2026 breakdown, plus what salary you'd need in Sydney to match your London take-home.
Is Sydney cheaper than London?
Overall, yes — but it's closer than many people expect, and it depends on how you spend. Consumer prices excluding rent are about 9% lower in Sydney, and around 13% lower once rent is included. Rent is roughly 20% cheaper and restaurants about 22% cheaper. The clear exception is groceries, which run about 25% higher than London — Australia's distance from suppliers and its own cost base push supermarket prices up.
Rent and housing
Sydney's headline rents undercut London's: a one-bedroom city-centre apartment averages around £1,838 a month versus £2,262 in London. That said, Sydney is a globally expensive housing market in its own right, and popular beachside suburbs command a premium. If you're moving from central London, you'll likely feel a modest saving rather than a dramatic one.
Groceries and eating out
This is where Sydney bites back. A comparable weekly shop costs noticeably more than in London — expect to pay a premium on dairy, meat and imported goods. Eating out is the opposite story: casual dining is around a fifth cheaper, and the quality-to-price ratio at cafés and mid-range restaurants is a genuine highlight of Australian life.
Transport
Public transport is cheaper, with a monthly pass around £114 against London's £200, and the Opal system is straightforward. Distances are larger, though, and many households run a car, so factor in fuel, insurance and tolls if you'll live in the suburbs.
Tax and take-home
Unlike a move to Dubai, Australia does tax income — resident rates run from a tax-free threshold up to 45%, plus a 2% Medicare levy. One point in your favour: employer superannuation (pension) is paid on top of your salary rather than deducted from it, so it doesn't reduce your take-home the way UK pension contributions can. To see how a Sydney salary compares with your UK pay after all of this, use our Global Salary Comparator.
Bottom line
Sydney is modestly cheaper to live in than London overall, with real savings on rent, dining and transport offset by pricier groceries. The lifestyle case is strong; the financial case is solid but not spectacular, especially once you account for income tax. As always, the honest answer comes from your own numbers — compare your salary and living costs before you commit.
Compare your UK salary with Australia →
Important
Figures are indicative 2026 estimates drawn from public cost-of-living data (Numbeo) and are not financial advice. Prices vary by suburb, lifestyle and exchange rates.