Do you dream of travelling to the UK? Whether you want to visit the Queen, spend the holidays on ice, or check out the Roman baths, you have a dozen reasons to be there. Your trip will also be excellent as affordable accommodation in London is now available. It still doesn’t change the fact, though, that the UK is still expensive.
How Pricey Is the UK?
To be fair, the price is relative. What is cheap for one may not be for others and vice versa. Based on reports, too, the UK isn’t the most expensive nation to be in. In 2017, Singapore ranked first among the least of not-cheap countries in the world, according to the Economist Intelligence Unit. None of the cities also made it to the top ten. For Expatistan, the cost of living in the UK is still lower than that in the Cayman Islands, which ranks second, or Hong Kong, which takes third place. European countries, such as Iceland, Switzerland, and Norway, are far more bank-breaking than the home of Prince William. On the downside, these rankings still mean that the country remains one of the priciest in the world.
The Reasons for the High Price Tag
There’s no simple answer to this as many factors can affect pricing. One of these is the cost of properties. When the price of land is high, it follows that the property that sits on top of it will also have a gold price tag. These include a dozen of businesses, from pubs, coffee shops, to hotels. To cover the costs, business owners have no choice but to sell their goods at a higher price than other European countries. The law of supply and demand affects property costs. In its simple sense, when the demand is high and the supply is low, the prices tend to go up.
The UK, however, has one of the highest levels of average household wealth in the world. It means that many people can afford to buy or at least lease a pricey piece of land. It doesn’t give the landowners a motivation to drive prices down.
The country is now spending on public infrastructures such as road and rail networks. The objective is to spread urban growth to the outer areas. While the intention is noble, the effect may also be detrimental. It will only increase the value of land in these places.
When consumer’s goods are pricey, then the cost of living can also go up. To give you an idea, spending in London is about 66% more expensive than in Madrid or over 55% higher than in Brussels, according to Expatica. Businesses, which need to spend on labour, would have no other option than to increase the prices of their services and products.
Travelling to the UK means having cash—and lots of it. With proper planning, though, you don’t need to drain your bank account. Other cities in the country are significantly cheaper than London. Even in the capital, you can find accommodation options that can fit your budget. It’s a matter of doing your research and making sacrifices in favour of the things that will matter to you during the holidays.