London is not what it used to be. It’s changed a lot since you were last here 6 years ago. I don’t think it’s worth the hard slog anymore. We are all paying a fortune for what is a rather poorer quality of living. And with the new government, we are all, doubtless, going to get significantly poorer. 20% VAT is just the start…

I get the concern about adjusting to the cost of living, especially with the significant changes since you left. When we moved back to London from abroad, we used a home loan calculator to get a clear picture of what we could afford. It helped us set realistic expectations for our budget and mortgage.

For salary expectations, tech roles in business often have a range depending on experience and company size. It’s a good idea to aim for a salary that comfortably covers private school fees, a mortgage, and other living expenses. It can be tricky to match the lifestyle you had in the States, but getting an idea of what’s realistic can help you make the best decision for your family.

Hi, I am coming late to the party but I agree with the 400K mark.

Hi Homeward Bound. I don't blame you for wanting to move back to this wonderful area of London. To fully understand your options I would recommend that you speak to an experienced Mortgage Broker who understands this scenario and can work with you throughout the process. If it helps I have over 30 years experience as a mortgage broker and the majority of my clients over this period of time live, or have lived, in the various SW postcodes.  I have also advised many people over this period of time who are looking to move back from overseas too. Mortgage lender's credit policy changes all the time and for you I would suggest that talking things through thoroughly with an experienced mortgage broker should be your first port of call. Feel free to PM me if you would like to chat through.

Hello,
I was the one that threw in the £400k figure (I was assuming 2 incomes adding up to that amount). It was not implied that you have to earn that kind of money to live BTC, it was merely in response to the original question about how much is needed to live comfortably, buy a house, send 2 kids to private school, and afford nice holidays. Our mortgage is more than £4K a month, and any renovations or house maintenance cost an arm and a leg on our Victorian house. This year we paid £6.5k to replace 2 sash windows and it was the cheapest quote by a long mile.

Once both kids are in private secondary, we have to earn £100k just to pay for that.

I would like to point out that above £100k earning the marginal tax rate increases to 45%, and that’s before you pay NI, and you lose your personal allowance. Overall, only just under half of your income will go to taxes, if you are in the higher tax bracket.

Yes you can live BTC with a lot less income, but unless you have substantial house equity, or help from parents, I would bet I am not far off what the people who send 2 kids to private school and relatively recently got on the housing ladder would feel you would need to earn to be comfortable. When I look around, the majority of parents who can afford that kind of lifestyle have either one high paying earner in the household (lawyers, financial industry) or they have two good incomes (eg, consulting, IT). Please also note that I am counting total income in that bracket, not just salary.

A huge thankyou to everyone for your replies.

I think that we have a lot of thinking to do. To be honest the £180 - £250K mark is what we had in mind as a range but from most of the replies here we will need to earn the top end of this if we want to enjoy the comforts that we have now and do private schools.

We are both keen to return to the Clapham area but think that something will have to give possibly schools fees at least in part.

So kind of everyone to reply, really appreciate it.

Something to keep in mind that I haven’t seen yet in the comments is the tax difference between US and UK. US taxes are much more favorable, especially for families. The UK gives essentially no meaningful tax relief for families with children, even when only one parent is working. Even if your husband earns 150k gross in London, don’t expect much more than 7k net each month after taxes, pension contributions, health insurance, etc. That certainly won’t be enough to cover mortgage, private school for 2, and food each month, let alone anything else. Realistically 250k should probably be your starting point unless you don’t need a mortgage

Our outgoings are around £9,000 pcm not including the mortgage. This is with our two young boys in prep school (£40k total/year).. we could easily live off less but that is a 'relaxed' spend.

Your accommodation the main cost varies hugely wherever you are on the 'housing ladder'.

Salary of £400k even if between 2 people, excludes many professionals, academics , creatives and so on!

Are we looking at only CEO level, influencers and other less savoury but lucrative roles or only senior level jobs in business ?

Overheads are very variable between individual families depending on your life stage, age/assets etc etc. Mortgage or large deposit etc

Primary education doesn't *have to be paid for, and is not necessarily better in the private sector imo, leaving time to save for secondary and university education, for example.

Not easy to speculate until you get jobs organised according to your qualifications/experience, then do the sums .
We have no idea what you or your husband do for a living etc..

Its not a cheap area to live (housing wise) but not everything comes out of monthly salary for some.

Fair enough :)

My answers were to « the minimum needed to live comfortably » which I agree is extremely subjective. I guess for me « comfortable » means being able to use the shops/services of the area and live a similar lifestyle to your neighbours/school parents.

For example
1) you can buy an item from a northcote shop without stressing about the cost (£5 for a pastry from Ole&S, kids shoes from Trotters, dress from Jigsaw, etc).
2) you don’t feel like the odd one out when fellow school parents discuss holidays
3) you can go to M&S and do a food shop without really looking at the prices
4) your car is a similar range from your neighbours ones

This type of things.
Don’t get me wrong, some will choose a location even if it means lifestyle cuts and there is nothing wrong with that! And others will move out to be able to afford more property than you get here for the same money - good for them as well.

My point was salary per person so you could definitely rent somewhere in Clapham or northcote road on a normal salary and yes it might be a flat and you might not have all the extras etc . I was just laughing at the crazy comments of having to earn at least 400k to live on northcote road which is simply untrue and laughable, and shows how out of touch some people are. My point was 400k is a very generous salary and one that hardly anyone earns, unless I’m naive, but yes it’s all down to lifestyle and choices. Her husband could be on half the salary quoted above if both of them were working like most people have to in this day and age.

@livingintherealworld
26k wouldn’t be enough even just to rent a house off Northcote road (ignoring all other expenses) so not sure what your point is?
Yes, there are cheaper areas and there are also more expensive areas.

I would say 250k gross is the minimum to earn as a household to feel comfortable in our neighbourhood IF you want to send your children to private school.
Of course you don’t need to earn this amount but I understand that the question wasn’t about the minimum needed but how much to be able to comfortably live here with a similar lifestyle that they have now.

@Normal Person : my kids are at one if the « less expensive » schools you listed and we pay 22-23k per year for each (fees + clubs + lunches). And this is before the 20% vat.
Secondary school will be around 30k each just for fees (again, before vat is added).

I agree very depressing and comical to read! We live close by and are nowhere close to 400 or even 100k income and still manage holidays and to shop in sainsburys! We both work full time and have young kids and a cleaner! Your post is funny as you need a year off work to settle your kids in? I’m assuming you’ll also be needing a nanny or wrap around childcare as well? The average salary in the UK is around 26k and people manage just fine!! Most people in London are not living in your world.

Sorry *high LTV