London1947

Many post's on here always seem to say that's it cost's less to live in the UK than in the USA. It's true that it would cost more to live in London as opposed to, let's just say the Midlands. It has been my experience that it cost's more to live here than the US. I live in Devon which I'm told is one of the more expensive Counties. However I came across a report in the Daily Mail, I know it's like the Sun or the Daily Mirror, but you can't dispute the disparaging difference on buying equipment or a car or any other big ticket item. More expensive here than in the US.

The great gadget price rip-off: How Britons are still paying hundreds of pounds more for the same products as American customers | Mail Online

Would be curious to hear some views on this point.

Regards
John

Pulaski

I think the big difference in the US is that there are good jobs in low cost areas. The same is less true in the UK. Cars, computers, electronics and most electrical things are cheaper in the US, IMO/ IME.

WEBlue

The one big-ticket expense that the typical UK resident doesn't have is health insurance. I think that's one of the bases for the blanket statement some make that cost of living is lower in the UK than the US.

I agree with you that lots of consumer items ARE more expensive in the UK. And certainly housing costs can be high. We couldn't afford to buy a nice house in our part of southeast England, but here in northeast America, we can....

solanocasa

We moved back to the UK (Midlands) just over a year ago, after the last 10+ years in the USA (N. Virginia). We moved for family reasons, and cost comparisons were not a deciding factor.

Overall, we have found it a little less expensive (and less than we expected) to live here than there. However, different personal circumstances will greatly alter this particular experience. I should also say we continued to pay NI contributions whilst away (albeit at a lesser rate than domestic) - I'm anticipating the inevitable attacks.........

It is undoubtedly true that certain specific items (e.g. most consumer goods) are more expensive in the UK. Partly it's a question of VAT -I just paid 300 pounds in VAT to the UK government on top of professional fees for a service to determine how much income tax I owe the UK government (22% v. 20%). Richer readers will immediately understand my charges were modest, reflecting a modest (but first year complicated) level of income. Believe me, it does not amuse me to think that a millionaire would pay VAT at the same rate as me - assuming, of course, they pay any taxes at all in the UK - most seem to find ways not to - but they are not "Benefits cheats" so that's all right.

It is also undoubtedly true, though, that commercial companies can get away with charging much more for the same item here as elsewhere - after all, who is going to stop them - Vince Cable? - the highly educated and politically active UK population ? The notion of capitalist competition is a joke here - collusion and collaboration is much more the norm, and always has been. (Somehow I suspect it's all an extension of the "good old boy" network, but I'm not sufficiently a good old boy myself to understand fully how it works). "Rip off Britain" is not entirely an empty slogan. Corporations in the UK in general get away with anti-competitive activity here that would be illegal, and pursued as such, in the USA - I can't speak about other nations. I'm sure this is entirely unconnected with major Corporate financial support to get Tories elected - not that New Labour were any more protective of the consumer (and the LIbDems in Coalition have disappeared). Also, the most expensive items are essentially one-off items - you don't need to replace a TV every year - unless you simply can't do without the latest model.......... We also stocked up on other items (clothing etc) before we left the USA.

A major saving here compared to the USA is the cost of healthcare - but that is because we are fully (and entirely legally) enrolled here in the NHS, and no longer have to pay USA healthcare insurance, private and/or Medicare, and numerous other costs. Our experience of the NHS so far (no new medical issues) has been very positive - I understand this experience will vary by personal circumstances, and perhaps by post code. If we paid for (could afford to pay for) private health insurance here, this saving would disappear.

We pay less for rental housing here than we did for our mortgage in the USA (and for Council tax versus property tax), and we pay a little less for utilities - we live modestly. Food costs seem to be pretty much a wash.

As for transportation, petrol is clearly more expensive, but we drive much less. As pensioners, we take advantage of free off-peak public transportation wherever possible. I did buy a car when we got back, but secondhand costs for decent cars do not seem out of wack (spelling ? I just got soundly corrected on another Forum....if my spelling is lousy, does that automatically negate my opinion or experience?)

Not sure if I am answering your question in any useful way. I emphasise that personal circumstances and life situations can obviously alter the picture totally - there is no way we could live as cheaply, for example, if we were in London.

Pulaski

I forgot to mention that I have found US incomes taxes and mandatory deductions INCLUDING health insurance to be approximately 10% (of my income) lessthan mandatory income taxes and deductions were in the UK. I can live with the health insurance premiums when I pay much less in income tax. BTW my property tax is less than I was paying in the UK.

feelbritish

I believe it is hard to compare and I know that the US is much cheaper than Canada hypothetically but then we have almost free healthcare too. The items you mentioned like cars, tv's computer stuff etc is probably cheaper in USA (not Canada) but then you buy those items maybe once every 10 years! I think to do a good comparison, you must equate food, rent, council tax, transport, and entertainment to compare notes. A lot of Brits are moving back more when they are nearer retirement age so that must tell you something?

Sally Redux

In my area:

Healthcare

Property taxes

Property maintenance

Tax preparation

Realtor fees

"Fees & taxes"

Cable TV

Mobile phone plans

Lack of public transport meaning more car journeys, realistically needing a car for each family member.

Tipping

School supplies/tests

Higher education fees


...should be stuck in the Daily Mail's pipe and smoked.

jmood

Living in central London vs living in NYC, using public transport and not a private car : For me NYC is much cheaper.

Pulaski

But the cost of renting a basic apartment in NYC can easily be 2-3x the cost of a flat in London.

jmood

On a one-to-one basis (size, area, amenities), no, I don't think it is.
Most flats in London you can barely swing a cat in and most of them are dark and dingy, (yes I know in NY too there are small ones, but there are many big and very airy ones too), plus you won't get proper hot water or water pressure, plus the heating will be crap. In NYC, even if you go to the cheaper areas of the city you are still in the city and still have good public transport to anywhere in the city. Whereas in London, cheaper means it's no longer really like London, takes ages to get into the central city plus the transportion is crap. If it's the same standard I have in NYC (size, airiness, windows, good water, good heat, location etc) then it's more expensive than London.

So I guess this is personal, but on a one-to-one basis (equivalency) for me NYC is cheaper.

Sally Redux

Surprising, but I'll take your word for it.

London1947

Hi Sally, let me reply to your list...

1. True healthcare often is more expensive but of better quality. If you are employed your employer pay's half of the cost.

2. No different to paying Council tax if you live in an expensive property.

3. Tax preparation can be done online, unless you have a need for a CPA for complicated tax returns.

4. Property maintenance no difference, you still have the same in the UK.

5. Realtor fee's still have to pay in UK.. Stamp duty ect.

6. Cable TV here in the UK still have to pay if you want a choice.

7. Here in the UK if you lived in a rural area public transport is non existent, then you would need more than one car.

8. Tipping varies from country to country. Waiter staff depend on tips to bring in some sort of decent wage. Brits do not tip for the most part.

9. School supplies are about the same.

10. I really can't make any comment on school fee's

Making a comparison between New York and London. Sure if you are able to live in Manhattan it would the the same as living in Kensington London.
The point is that you have to live in both places to get a good comparison.
I find it more expensive in the UK and getting more expensive. Buying big ticket items in some States have no sales Tax, Nevada, Delaware to name two. Of course I'm sure they make it up in different way's. For example when I moved from Virginia to Nevada I went to register my car which you have to do should you move to a different State. I was shocked when the local DMV in Las Vegas charged me tax on my car as if it was brand new, it was ten years old.

Sally where are you located?

Regards
John

dunroving

I've been AWOL a bit as I often am this time of year due to travel, but couldn't help spotting this thread, which comes up every now and then.

It is really impossible to provide much of a definitive answer because most people interpret it as whether the UK/US is less/more expensive for them. For most of us "reality" is "our reality". Having said that, below are some of the things I think need to be taken into consideration when answering this question:

Exchange rate - prices don't go up and down as quickly as the exchange rate. In 12 months the £ has gone from about $1.50 to $1.70, so a straight comparison of prices makes the UK look cheaper than 12 months ago.

Sales tax - varies from 0% in some cities/states to around 10% in other cities/states (? - I remember visiting New Orleans about 20 years ago and was shocked that 14% was added to prices!) , but, unlike VAT, it isn't shown in the sales price. Looking online at how much an iPad costs doesn't represent how much you would pay on your vacation to San Francisco, for example.

House prices. IMO, UK housing is comparatively much more expensive in the UK now, compared to the US, than it was 10-20 years ago. This takes into account regional variation and I realise there are some US cities and states that are very expensive. In the UK, though, it seems very difficult to buy a decent house for anywhere near the cost in the US, unless you are willing to live in a very remote area or in a very rough part of a city.

House purchase cost - greater in the US, relatively, because realtor fees are 6%, but then in the UK, stamp duty is ridiculous, and is exacerbated by the higher cost of housing (generally) than the US.

Health care - bloody expensive in the US even if you do have insurance (unless it is a really gold-plated employee plan), but then in the UK, you pay for it through higher taxes. I think overall, the costs are similar except that in the UK you are covered against the extremities of a major illness, which in the US could bankrupt you.

Property taxes/council taxes - these seem much more variable in the US and I am amazed at the stories on here about sales tax in places like New Jersey. In the UK, they seem to be more consistent from region to region.

Groceries overall seem to me to be much of a muchness between the two countries. Clothing, etc., the same. Luxury items maybe slightly cheaper in the US, even after taking sales tax into account.

But bringing it back to my original point, the cost of living question is usually very subjective and depends on your situation in the two countries. I'll write a bit about that in the other thread (the "regrets" one)

dunroving

+1

I just visited two university towns in the southeast USA. A job in either place would pay similar to what I am earning here. In both places, I could buy a lovely detached house in a lovely subdivision, with at least 2 bathrooms, 4 bedrooms, spacious open plan kitchen and diner, large living room, huge garage, huge yard, for double my salary.

Here, double my salary would barely buy me a one-bedroom former council flat.

For the price of my current house (3 BR former council end-terrace in what could euphemistically be called a "mixed neighbourhood"), I could buy a huge ranch-style house in the UK, with at least an acre, in an idyllic setting within an easy commute of work. I know because I just stayed with friends with just such a house. It backs onto the Oconee river, and is in a very "upscale" neighbourhood.

Sally Redux

Los Angeles.

There seems little point arguing back and forth but I know the things I listed tend to be higher in the US.

Healthcare I have found to be mediocre in quality and often blocked by insurance company, again just my take on it.

Point being it is easy to identify 'rip-off's but they vary by country/area.

There are much cheaper areas of the US to live in than California, for me they would have lifestyle drawbacks like bible/gun/race stuff but if you can deal with that then savings can be made on property prices.