Introduction
Our team recently visited the United Kingdom, and one of the recurring themes in conversations with both South Africans living abroad and UK business owners was the question of cost. Understanding South Africa living costs is essential for both individuals and global businesses. Many wanted to know why South Africa is considered so affordable and how much it actually costs to live in each country. This blog aims to unpack those questions by comparing the cost of living and quality of life between London and Cape Town using the latest data from Numbeo (November 2025). Whether you are a South African considering returning home or a UK business owner looking to understand the broader context behind the 50% cost savings possible when hiring South African talent, this article provides a clear and factual breakdown.
Understanding South Africa Living Costs vs the UK
According to the latest Numbeo data (November 2025)
- Cost of Living in Cape Town is 55.7% lower than in London (excluding rent)
- Cost of Living Including Rent in Cape Town is 61.6% lower than in London
- Rent Prices in Cape Town are 70.5% lower than in London
- Restaurant Prices in Cape Town are 56.7% lower than in London
- Groceries Prices in Cape Town are 47.9% lower than in London
- Local Purchasing Power in Cape Town is 1.3% lower than in London
These numbers highlight why South Africa’s affordability creates a strong opportunity for global companies employing South African talent remotely. To enjoy the same standard of living you could have with £6,700 (R152,020) in London, you would only need £2,574 (R58,508) in Cape Town.
| Salaries & Financing | London (£ / R) | Cape Town (£ / R) | Difference (%) |
| Average monthly net salary (after tax) | £3,289.82 / R74,778.17 | £1,246.87 / R28,341.60 | -62.1% |
| Annual mortgage interest rate (20-year fixed) | 4.74% | 11.52% | +143.0% |
| Everyday Living: Restaurants | London (£ / R) | Cape Town (£ / R) | Difference (%) |
| Meal at inexpensive restaurant | £20.00 / R454.60 | £8.80 / R200.00 | -56% |
| Meal for two (mid-range, 3 courses) | £80.00 / R1,818.41 | £35.20 / R800.00 | -56% |
| Domestic draft beer (0.5L) | £6.50 / R147.75 | £2.20 / R50.00 | -66% |
| Cappuccino | £3.99 / R90.60 | £1.64 / R37.23 | -59% |
| Soft drink (0.33L) | £2.34 / R53.28 | £0.95 / R21.62 | -59% |
| The Cost of Groceries | London (£ / R) | Cape Town (£ / R) | Difference (%) |
| Milk (1L) | £1.28 / R29.14 | £0.92 / R20.97 | -28% |
| Bread (500g) | £1.57 / R35.76 | £0.87 / R19.79 | -45% |
| Eggs (12) | £3.56 / R80.83 | £1.90 / R43.14 | -47% |
| Chicken fillets (1kg) | £6.55 / R148.89 | £4.12 / R93.72 | -37% |
| Beef (1kg) | £11.71 / R266.19 | £6.06 / R137.70 | -48% |
| Apples (1kg) | £2.39 / R54.38 | £1.33 / R30.30 | -44% |
| Tomatoes (1kg) | £2.60 / R59.04 | £1.32 / R30.10 | -49% |
| Bottle of wine (mid-range) | £8.50 / R193.21 | £4.40 / R100.00 | -48% |
| Housing and Rent | London (£ / R) | Cape Town (£ / R) | Difference (%) |
| 1-bedroom apartment (city centre) | £2,350.57 / R53,428.91 | £662.31 / R15,054.35 | -71.8% |
| 1-bedroom outside city centre | £1,763.64 / R40,087.74 | £442.14 / R10,050.00 | -74.9% |
| 3-bedroom apartment (city centre) | £3,817.65 / R86,775.73 | £1,198.32 / R27,238.10 | -68.6% |
| 3-bedroom outside city centre | £2,756.43 / R62,654.06 | £847.99 / R19,275.00 | -69.2% |
| Transport, Utilities, and Lifestyle | London (£ / R) | Cape Town (£ / R) | Difference (%) |
| Monthly public transport pass | £171.70 / R3,902.77 | £21.56 / R490.00 | -87% |
| Gasoline (1L) | £1.40 / R31.85 | £0.96 / R21.80 | -32% |
| Basic utilities (85m² apartment) | £250.52 / R5,694.45 | £95.66 / R2,174.37 | -62% |
| Mobile plan (10GB+ data) | £14.86 / R337.71 | £25.00 / R568.33 | +68% |
| Broadband (60 Mbps+) | £33.14 / R753.22 | £33.53 / R762.04 | +1% |
| Childcare and Education | London (£ / R) | Cape Town (£ / R) | Difference (%) |
| Private preschool (monthly) | £1,893.57 / R43,041.15 | £173.78 / R3,950.00 | -91% |
| International primary school (annual) | £21,336.46 / R484,981.20 | £4,043.08 / R91,899.90 | -81% |
| Index | Cape Town | London | Observation |
| Quality of Life Index | 159.34 | 133.38 | Cape Town higher |
| Purchasing Power Index | 103.13 | 104.86 | Similar |
Why South Africa Living Costs Matter for Global Employers
The same economic gap that makes South Africa affordable for individuals creates an opportunity for global companies.
When hiring South African talent, businesses can achieve up to 50% cost savings on equivalent roles without compromising on skill, reliability, or output.
For example, a finance professional earning R65,000 per month (£2,850) in Cape Town costs less than half of what a similar professional would cost in London, often £5,000–£6,000 per month. South Africans are highly qualified, fluent in English, and culturally aligned with Western markets, which makes them ideal for remote collaboration.
The Bigger Picture: Quality and Cost in Balance
This is not about paying less for less. It is about accessing world-class professionals in a region where the cost of living allows for globally competitive salaries that are still significantly more affordable.
That is why more UK businesses are partnering with HireJustNow, South Africa’s trusted Employer of Record (EOR). Through our model, companies can hire legally and compliantly, manage payroll, tax, and HR locally, and save up to 50% on total employment costs.
Frequently Asked Questions
1. What are the biggest reasons why you can expect a 50% cost saving when hiring talent from South Africa?
South Africa’s cost of living is more than 60% lower than the UK’s, which means market-related salaries are significantly more affordable when converted to pounds. Through HireJustNow’s Employer of Record model, UK companies can legally employ South Africans at a fraction of local hiring costs, achieving around 50% total cost savings while maintaining quality and compliance.
2. What would South Africans living in London say are the biggest expenses to get used to?
Rent and eating out are the biggest lifestyle shocks for South Africans moving to the UK. Public transport can also be expensive, although most Londoners don’t need to own a car. Raising children in London is another major cost, often motivating families to move back to South Africa for a better balance between affordability and quality of life.
3. What type of roles can you outsource to South Africans through HireJustNow?
HireJustNow helps global companies hire across a wide range of professional roles, including: Finance and Accounting; Tech and IT; Marketing; Sales and Customer Support; People and HR-related roles
Final Thought
When you compare the numbers, the logic is simple. If the cost of living in South Africa is more than 60% lower, and the quality of life is higher, then hiring South African talent at 50% lower cost is not only economical, it is strategic.
HireJustNow helps global companies hire smartly, operate legally, and grow sustainably through South African talent.
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