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    Most people throw around the terms that "oh aye you'll live like a king on 22k a year up north" etc and so what is an actual equivalent to the London salary.

    For example, if I were to make £25k a year in Newcastle, how much more would the equivalent in London be based on having same amount of disposable income and what not.
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    The major difference will be rent or a mortgage.

    I'm not an expert on property values in either location but I expect the value of renting in London to be around 4-5 times (if not more) than the equivalent property in Newcastle. That's the major difference in your disposable income really. It isn't unknown for people to spend more than 50% of their post tax wage on rent in London (eg a £25k salary and spending approx £850 on rent).

    Going out can be more expensive, especially if you like going to nice places or independent shops/bars/restaurants. But typically a pint in a chain pub in London isn't going to be much more expensive than in Newcastle. Plus there are plenty of free events or cheap activities you can do in London.

    Unfortunately labour markets and wages don't really work on a comparison in that respect. Employers don't think purely about the difference in disposable income and therefore pay more accordingly. A lot of organisations use London Weighting/London Allowance as an add on to salary but that varies between organisations.

    Ultimately wages are driven by supply and demand, and therefore if an employer can pay the national wage in both locations and still get decent staff, they will.

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    The majority of sales in Newcastle Upon Tyne during the last year were terraced properties, selling for an average price of £173,351. Semi-detached properties sold for an average of £176,918, with flats fetching £133,162.

    Most of the sales in Greater Manchester over the past year were terraced properties which on average sold for £125,517. Semi-detached properties had an average sold price of £178,571 and flats averaged at £139,647.

    Most of the sales in London over the past year were flats which on average sold for £570,525. Terraced properties had an average sold price of £839,604 and semi-detached properties averaged at £973,622.

    There you go.
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    Well I just wanted to know how much would a 25k salary be equivalent to in London. I know rent is a lot more...
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    (Original post by TrojanH)
    Well I just wanted to know how much would a 25k salary be equivalent to in London. I know rent is a lot more...
    What you are asking for doesn't really exist, and where comparisons could be made it would vary massively between sectors/roles.


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    (Original post by J-SP)
    What you are asking for doesn't really exist, and where comparisons could be made it would vary massively between sectors/roles.


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    It exists. There are lots of website col comparisons for the US.

    I just wanted to know if I had a 25k job in Ncl and was offered a role in London, how much more would it have to be for it to be worth while in wage alone
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    (Original post by TrojanH)
    It exists. There are lots of website col comparisons for the US.

    I just wanted to know if I had a 25k job in Ncl and was offered a role in London, how much more would it have to be for it to be worth while in wage alone
    Then how about using those sites to get your answer if that is the case?

    It is dependent on so many different factors that whether something is worthwhile isn't going to come down purely to wage.


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    (Original post by TrojanH)
    It exists. There are lots of website col comparisons for the US.

    I just wanted to know if I had a 25k job in Ncl and was offered a role in London, how much more would it have to be for it to be worth while in wage alone
    You'll be able to afford your own flat/home so no high price renting, be warned there are a lot of trouble up there. In London, you could live in Essex and use train to London, as wages are far higher in London it will be affordable and still better off than living up in North were wage are far lower.
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    This might give you an indication of rough market evaluations of London weighting added to salaries:

    https://www.unison.org.uk/content/up...llowances3.pdf

    Whether this additional allowance makes something worthwhile or not is a personal judgement. I moved to London not just for the short term better salary, but the better and more high profile job prospects.

    It will give you an indication of what you could get, rather than what you would expect.


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    (Original post by TrojanH)
    Most people throw around the terms that "oh aye you'll live like a king on 22k a year up north" etc and so what is an actual equivalent to the London salary.

    For example, if I were to make £25k a year in Newcastle, how much more would the equivalent in London be based on having same amount of disposable income and what not.
    I se from your replies that you were getting a bit confused. So essentially the thing to remember is that compared to the rest of the country only rent and transport are really a bit more expensive.

    I live in Leeds and if i was getting ~£21k per year (~£1500 per month) i'd probably spend it something like..

    £600 - Rent
    £200 - Household and personal bills
    £100 - Food and toiletries
    £100 - Transport (less actually but we'll assume i go around a lot for our purposes)
    £300 - General Spending
    £200 - Savings/Investment

    So in London the first thing to be halved would be savings because transport increases to £200. The second thing that happens is that because house prices are 3-4 times higher for a modest 2 bed apartment (i assumed in my calculations there'll be a friend) that you'll probably pay at least twice the level of rent, hence your spending pattern looks like like this..

    £1200 - Rent
    £200 - Transport
    £300 - Bills, food, toiletries
    £300 - General spending

    Total: £2000

    Hence, just to maintain my lifestyle you'll have to earn £700 more per month before you can start saving and investing. To match my level of savings you'll more or less have to earn £2.5k per month.

    *Note that you can reduce costs via spareroom ect.. but the moral of the story is that living outside London is probably worth about £10k.

    Also found a cool map..

    http://media.timeout.com/images/102882214/image.jpg
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    (Original post by TrojanH)
    Well I just wanted to know how much would a 25k salary be equivalent to in London. I know rent is a lot more...
    One thing is which sector you work in. For example, public sector salaries tend to be a little higher in London ('London weighting') but not hugely higher, so if you work in many public sector jobs, salaries outside London tend to offer a better net standard of living, given the big disparity in housing costs.

    Some very well paid jobs tend to be concentrated in London, especially professional and 'new industry' jobs like the tech sector, but of course you also need the skills for those types of work, so it's hard to compare. Most 'higher end' jobs like that in London offer higher pay rates than similar ones in the 'provinces', although they also attract good salaries across the South East and out to places like Bristol and Birmingham.

    I would hazard a very general guess that your £25K in Newcastle would be equivalent to £35K in London, but if you want a true cost of living comparison, for Inner London, you would probably need more like £50K to have the same standard of living as in the North East.
 
 
 
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