Cost comparison table showing community type costs by location

Detailed cost of living comparison between New Zealand and United Kingdom

Cost comparison table showing community type costs by location

A table comparing the cost of living in various European Union countries, including expenses for rent, utilities, food, and transportation in major cities

Cost comparison table showing 2023 and 2024 median costs by location

The average agreed rent for new tenancies in the UK ranged from *** British pounds to ***** British pounds, depending on the region. On average, renters outside of London paid ***** British pounds, whereas in London, this figure amounted to ***** British pounds. Rents have been on the rise for many years, but the period after the COVID-19 pandemic accelerated this trend. Since 2015, the average rent in the UK increased by about ** percent, with about half of that gain achieved in the period after the pandemic. Why have UK rents increased so much? One of the main reasons driving up rental prices is the declining affordability of homeownership. Historically, house prices grew faster than rents, making renting more financially feasible than buying. In 2022, when the house price to rent ratio index peaked, house prices had outgrown rents by nearly ** percent since 2015. As house prices peaked in 2022, home buying slowed, exacerbating demand for rental properties and leading to soaring rental prices. How expensive is too expensive? Although there is no official requirement about the proportion of income spent on rent for it to be considered affordable, a popular rule is that rent should not exceed more than ** percent of income. In 2024, most renters in the UK exceeded that threshold, with the southern regions significantly more likely to spend upward of ** percent of their income on rent. Rental affordability has sparked a move away from the capital to other regions in the UK, such as the South East (Brighton and Southampton), the West Midlands (Birmingham) and the North West (Liverpool, Manchester, Blackpool and Preston).

In April 2026, the UK minimum wage for adults over the age of 21 will be 12.71 pounds per hour. For the 2026/27 financial year, there are four minimum wage categories, three of which are based on age and one for apprentice workers. Apprentices, and workers under the age of 18 will have a minimum wage of eight pounds an hour, increasing to 10.85 pounds for those aged 18 to 20. When the minimum wage was first introduced in 1999, there were just two age categories; 18 to 21, and 22 and over. This increased to three categories in 2004, four in 2010, and five between 2016 and 2023, before being reduced down to four in the most recent year. The living wage The living wage is an alternative minimum wage amount that employers in the UK can voluntarily pay their employees. It is calculated independently of the legal minimum wage and results in a higher value figure. In 2023/24, for example, the living wage was twelve pounds an hour for the UK as a whole and 13.15 for workers in London, where the cost of living is typically higher. This living wage is different from what the UK government has named the national living wage, which was 10.42 in the same financial year. Between 2011/12 and 2023/24, the living wage has increased by 4.80 pounds, while the London living wage has grown by 4.85 pounds. Wage growth cancelled-out by high inflation 2021-2023 For a long period between the middle of 2021 and late 2023, average wage growth in the UK was unable to keep up with record inflation levels, resulting in the biggest fall in disposable income since 1956. Although the UK government attempted to mitigate the impact of falling living standards through a series of cost of living payments, the situation has still been very difficult for households. After peaking at 11.1 percent in October 2022, the UK's inflation rate remained in double figures until March 2023, and did not fall to the preferred rate of two percent until May 2024. As of November 2024, regular weekly pay in the UK was growing by 5.6 percent in nominal terms, and 2.5 percent when adjusted for inflation.

A weak spending environment amid economic headwinds casts a shadow over industry performance. Squeezed budgets amid the cost-of-living crisis were a double-edged sword for takeaways and fast-food restaurants over the two years through 2023-24: some consumers cut back on takeaways, while others traded down from full-service restaurants to takeaways and fast food. Inflationary pressures resulted in hikes in labour, energy and sourcing costs, straining profitability. Those with higher disposable incomes have been less impacted, demanding higher quality and healthier options, typically with a higher price tag. Persisting inflation and economic uncertainty weaken consumer confidence and spending in the two years through 2025-26. Revenue is projected to inch upward at a compound annual rate of 0.6% over the five years through 2025-26, including a 0.2% hike in 2025-26. The subdued rate of growth reflects ongoing challenges. The surge of online food ordering has fuelled revenue growth. While online sales peaked during the pandemic, consumers drawn to convenience have become accustomed to ordering takeaways and fast food online. The development of state-of-the-art online platforms and third-party online ordering platforms like Deliveroo and Uber Eats are becoming the bread and butter for takeaway and fast-food outlets, encouraging new players into the industry. Britons' growing health and sustainability consciousness presents an opportunity for takeaway and fast-food businesses to introduce more expensive organic and meat-free menu items to boost revenue and profit. Britons’ tastes for healthy and sustainable takeaway options will continue to climb. Stricter legislation regarding the adverse effects of consuming junk food will promote product development innovation and healthy fast-food alternatives, driving additional revenue streams. As workers return to the office more permanently, demand for takeaway lunch options will swell. Fast food chains will invest heavily in aggressive expansion plans to secure market share and reduce costs. Investment in marketing is likely to increase as operators turn to social media and online advertising to attract younger consumers and secure long-term revenue. Spending on innovation will persist as major players leverage AI and technological advancements to differentiate themselves from competitors and meet growing demand. Revenue is forecast to climb at a compound annual rate of 3.1% to £27.5 billion over the years through 2030-31.

The Fast-Food Franchises industry has been influenced by changing consumer preferences and the convenience of online food ordering. Although demand for cheaper, on-the-go food is boosting sales, fast-food establishments have had to adapt to changing consumer tastes and rising health consciousness by introducing healthier options and vegetarian and vegan offerings to capture mounting demand. The boom of delivery services has also fed revenue growth, as many opt for fast-food for its convenience and digital ordering has made it easier to receive meals. Revenue is expected to rise at a compound annual rate of 3.6% over the five years through 2025-26 to £13.1 billion. Following Russia’s invasion of Ukraine, fast-food franchises faced escalating operating costs, with soaring food and energy prices hitting profitability. Lingering supply disruptions continue to pressure food costs, with the price of beef in particular surging. Additionally, hikes in the National Living Wage are worsening these cost rises, due to the industry’s reliance on low-skilled labour. This is prompting franchises to streamline operations by integrating new technology like self-service kiosks to cut down on labour expenses. Intense competition and these heightened operating costs are weighing on profit, although it’s still higher than it was five years ago due to the pandemic. However, financial pressures have also brought opportunities. Cost-of-living pressures are continuing, with inflation reaching 3.8% in the 12 months to August 2025. This is driving more low-income consumers towards cheap fast-food restaurants, though many others are also cutting out discretionary spending on eating out, restricting revenue growth to just 0.1% in 2025-26. Revenue is forecast to climb at a compound annual rate of 3% over the five years through 2030-31 to reach £15.2 billion. The convenience and low prices offered by fast-food outlets will continue to drive demand. Fast-food franchises that provide clear nutritional information, source ingredients responsibly, provide healthier options and continuously innovate their menus with new and exciting flavours will stand out in this competitive market. Additionally, expansion plans by the industry’s biggest names provide a bright outlook for revenue, while AI should help brands optimise production and boost their performance.

The average cost of a shopping basket, consisting of 70 items, was the lowest at the *********************** and amounted to ****** British pounds as of October 2025. It was over ** pounds cheaper than the corresponding range of goods at Waitrose. Below that, the second most expensive basket was the one offered by *****, an online supermarket operating in the UK. The UK grocery market In 2021, the entire grocery market of the United Kingdom was worth ***** billion British pounds. This figure was forecast to increase to over *** billion British pounds by 2027. Grocery stores Supermarkets are the most profitable store form currently in the UK. Sales generated by supermarkets came to around *** billion pounds. In comparison, discounters made close to ** billion in sales, while the online channel accounted for around ** billion. Sainsbury’s operated**** supermarkets at the beinning of the 2024 financial year and another**** convenience stores.

At **** U.S. dollars, Switzerland has the most expensive Big Macs in the world, according to the January 2025 Big Mac index. Concurrently, the cost of a Big Mac was **** dollars in the U.S., and **** U.S. dollars in the Euro area. What is the Big Mac index? The Big Mac index, published by The Economist, is a novel way of measuring whether the market exchange rates for different countries’ currencies are overvalued or undervalued. It does this by measuring each currency against a common standard – the Big Mac hamburger sold by McDonald’s restaurants all over the world. Twice a year the Economist converts the average national price of a Big Mac into U.S. dollars using the exchange rate at that point in time. As a Big Mac is a completely standardized product across the world, the argument goes that it should have the same relative cost in every country. Differences in the cost of a Big Mac expressed as U.S. dollars therefore reflect differences in the purchasing power of each currency. Is the Big Mac index a good measure of purchasing power parity? Purchasing power parity (PPP) is the idea that items should cost the same in different countries, based on the exchange rate at that time. This relationship does not hold in practice. Factors like tax rates, wage regulations, whether components need to be imported, and the level of market competition all contribute to price variations between countries. The Big Mac index does measure this basic point – that one U.S. dollar can buy more in some countries than others. There are more accurate ways to measure differences in PPP though, which convert a larger range of products into their dollar price. Adjusting for PPP can have a massive effect on how we understand a country’s economy. The country with the largest GDP adjusted for PPP is China, but when looking at the unadjusted GDP of different countries, the U.S. has the largest economy.