Software Engineers' Earnings in London: a Chance for Opportunity and Security

Packing up and taking your software engineering skills to London is a great idea for several reasons.

London has a developing tech scene and is the site of numerous tech companies, from start-ups to large multinational corporations. What’s more, London offers competitive salaries for software engineers who can contribute to its diverse job market, which encompasses sectors like finance, healthcare, retail, media, and more. All this diversity means that there are plentiful opportunities for software engineers to find what suits their interests and meets their compensation goals.

London, a thriving hub of technology in the UK, beckons software developers with the promise of competitive compensation packages and unique opportunities. Relocating to this vibrant city could be a life-changing decision, propelling your career to new heights. Read on to discover the exciting earning potential for software engineers in London, along with other worthwhile considerations.

Brexit - how did this affect earners?

Despite the uncertainties of Brexit, the tech sector in the UK has remained remarkably stable. In fact, European investments in British tech companies reached a record high in 2018, indicating the continued confidence in the UK's tech industry.

Tech salaries have been on the rise since 2016. Currently, the average tech salary in London is around £62k. Software engineers are especially well-compensated, with engineer managers being the highest-paid in 2024, earning an average of £75k. Blockchain and data engineers followed closely, reflecting London's strong focus on fintech.

• Blockchain engineer: $147K (£65K)
• Data engineer: $96K (£56K)
• Machine learning engineer: $125K (£68K)
• Search engineer: $105K (£50K)
• Security engineer: $110K (£67K)
• Natural language processing engineering: $130K (£78K)
• Gaming engineer: $105K (£63K)
• Backend engineer: $115K (£60K)
• Full-stack engineer: $125K (£70K)
• Mobile engineer: $120K (£65K)
• Frontend engineer: $110K (£63K)

In comparison to other cities in the UK, London stands out with significantly higher average tech salaries across the board. That, coupled with the promise of diverse opportunities and a thriving tech ecosystem, makes London an incredibly compelling choice for tech professionals, not just in the UK but globally.

Brexit undoubtedly created uncertainty for employers and employees in the UK. However, there’s good evidence that London will continue down the path to becoming the center for innovation in the UK and a tech hub for continental Europe.

Let’s factor in the cost of living

Yes, there’s something to be said about the salaries one can find in London compared to other UK and European cities. The catch is that London's cost of living is notoriously high. The cost of living in London (based on consumer prices and rent) is only about 12% less than in San Francisco. As many people are aware, that’s a significant number.

Like any decision, seeking a software developer position in London has advantages and disadvantages. While the benefits tend to outweigh the drawbacks, it is good to take a holistic approach and consider all the factors, including the cost of living. When deciding whether or not relocating is a good option, consider your lifestyle and your so-called “non-negotiables.” Do you enjoy eating out often? Will there be a commute to your job? Factor these costs into your decision-making process.

Salary averages—a benchmark, not a limit

Salary averages can be helpful when navigating your own salary wants and needs. But remember that they’re just that—an average. Don’t rely on these numbers to give you the best sense of your earning potential or set limits if you feel like your skills are worth more. Use these numbers (along with other factors like experience, skill sets, etc.) as a guidepost for negotiating the best salary for you.

For more guidance on your career journey, connect with an LHH recruiter today!