Average Salaries ($K)
London 2020-2024
Data Salary review
London
2020 - 2024
- 47% Average Cost Of Living Rise
- #19/23 Cheapest City To Live
- 27% Average Salary Rise
- #3/23 Salary Growth - All Roles
- #3/23 Salary Growth For Heads Of Data
- #12/23 Salary Growth For Data Engineers
- #8/23 Salary Growth For Data Analysts
- #1/23 Salary Growth For Data Scientists
Overview
London offers the highest salaries and unparalleled job opportunities in the UK. The city is home to global data-driven companies and hosts numerous industry events, fostering an environment where data people can thrive. London’s appeal is further bolstered by its rich cultural offerings, including world-class museums, theatres, and an ever-evolving restaurant scene.
You would think then, that every data person would simply flock to the capital, but London is not without its pitfalls. Property prices are nearly double the UK average and the cost of living has risen substantially in the last two years. This financial strain is leading many intermediate-level data professionals to leave for more affordable regions where they can step onto the property ladder.
This migration has meant salaries have gone up at intermediate level, but budgets generally have not – with a consequence that it is now harder for beginners to start their careers and secure their first roles. Whilst London has significantly more job opportunities than the rest of the UK (and rivals America in many categories) it is still a very competitive environment.
Heads Of Data
London is one of the most competitive markets for Heads of Data, but it comes with its own set of challenges. The cost of living, particularly housing, is incredibly high, and while salaries can seem attractive, they are often necessary to manage the expenses of life in the city. With global tech giants, financial institutions, and startups all vying for top-tier talent, it seems like a great market for data professionals but this high demand comes with high expectations. Not only are you expected to stay ahead of emerging technologies, drive innovation, and manage large teams, but you are also often tasked with influencing critical business decisions. The pressure can lead to burnout, and even though the salaries are high, market volatility means it can be hard to predict the financial landscape for the long term.
Over the last five years, the role of a Head of Data in London has shifted significantly. What was once a purely technical role has now become a more strategic one, with data leaders expected to drive insights that directly influence business decisions. Companies are now looking for candidates who can bridge the gap between technical expertise and business strategy, making hybrid skills highly sought after. This shift has made the job market even more competitive, but also more rewarding.
We see in our chart a dip in 2022 – during this year most London companies were involved in a battle to secure fresh talent in engineering or analyst and so there was less demand for senior leaders. None-the-less salaries ultimately grew by 40.90% at beginner level, 34.48% at intermediate level and 26.3% at expert level. London ranked #3/23 for wage growth in the last five years, with an average salary increase of 32.58%.
Average Salaries ($K) By Experience
Data Engineers
Being a Data Engineer in London comes with both significant advantages and some notable challenges. On the positive side, London is one of the biggest tech hubs in the world, with a massive demand for data talent across industries like finance, healthcare, retail, and technology. Over the last five years, wages for Data Engineers have grown by 20.31%, ranking the city as #7/23 for wage growth in our research. London’s job market is diverse, offering ample opportunities for career advancement, especially in larger companies where you can work on large-scale data infrastructure projects with cutting-edge technology.
However, there are some drawbacks to being a Data Engineer in London as well. While salaries are high, they can be offset by the city’s steep living costs. There’s also an increasing trend where Data Engineers are being pulled in two directions—larger companies with ongoing, high-demand roles versus smaller, scaling businesses. The latter often hire Data Engineers for standalone roles or as part of a Chief Data Officer’s (CDO) remit. While this can provide opportunities to build something from scratch or move quickly into managerial positions, it is a gamble. Interestingly, one that many Data Engineers seem willing to take, and is perhaps one of the reasons behind relatively flat wage growth over the last five years.
Average Salaries ($K) By Experience
Data Analysts
Between 2020 and 2024, average Data Analyst salaries in London have risen by 44.23%, reflecting the growing demand for skilled professionals in the field. However, this rise in compensation comes with an increasing expectation of a broader skill set, with businesses now requiring not only expertise in tools like SQL, Python, and Tableau but also strong business acumen and presentation skills. As the role continues to expand, Data Analysts are expected to contribute to strategic decision-making, often presenting complex insights to non-technical stakeholders and job descriptions are becoming increasingly blurry with those of data scientists.
While London offers a wealth of opportunities for Data Analysts across various industries, such as tech, finance, healthcare, and media, the job market is highly competitive. The influx of talent from universities and bootcamps has led to a plateau in wages, despite the salary surge seen between 2021 and 2022 where salaries rose on average by 29.09%. At the intermediate level, many Data Analysts are transitioning into Data Scientist roles for higher earning potential, leaving a gap in experienced talent at this level. London ranked #8/23 in terms of wage growth when comparing 2020 to 2024.
Average Salaries ($K) By Experience
Data Scientists
London has defied the global trend when it comes to data scientist wages. While many regions have seen salaries stagnate or even decline, London has experienced a notable 13.33% increase in compensation over the last five years. This growth underscores London’s unique position as both a financial powerhouse and a centre of innovation, with industries like fintech, insurance, and healthcare driving demand for highly skilled data professionals. The city’s strong concentration of financial institutions, tech startups, and global enterprises is creating a perfect storm for data scientists, as companies increasingly seek to harness data for competitive advantage.
One contributing factor to this wage growth is the maturity of London’s data ecosystem. Data science roles, particularly those involving AI and machine learning, require robust data infrastructure such as well-established ETL (Extract, Transform, Load) pipelines. In regions with more mature data-driven businesses, there is a clearer demand for data scientists with the skills to navigate and enhance these systems. This infrastructure enables companies to leverage AI more effectively, leading to higher wages as the value of these professionals increases. Additionally, London’s appetite for AI adoption is perhaps greater than in other cities, driven by both its existing tech-savvy landscape and the financial resources available to invest in advanced technologies. This combination of factors contributes to the city’s strong growth trajectory for data scientist salaries. London ranked #1/23 for wage growth when comparing 2020 to 2024.
Average Salaries ($K) By Experience
Hiring Data Roles For London Companies
London is one of the most competitive and dynamic job markets for data talent globally. The talent pool is vast, with a high concentration of skilled professionals across all data roles, from entry-level to senior positions. As a financial hub with a growing tech ecosystem, London attracts a significant number of top-tier data scientists, analysts, and engineers, leading to a highly competitive market. While there is no shortage of talent, it is highly in demand and so salaries are high, reflecting the cost of living and the intensity of competition for talent.
If you are finding it challenging to hire the right data professionals internally or facing delays in recruitment, it may be time to consider working with a data agency like 173tech. Engaging an agency offers the benefit of flexibility, allowing you to scale your data maturity quickly without the overhead of a lengthy hiring process. This approach can be more cost-effective than hiring directly, especially when looking for a temporary solution or expertise in setting up your analytics stack.
173tech Direct Comparison
- Head Of Data (5+ yrs) $240k
- Data Engineer (5+ yrs) $130k
- Data Engineer (0-3 yrs) $75k
- Data Analyst (3-5 yrs) $75k
- $520k per yr + Tax + Pension + Holidays
- Candice (15+ yrs) Ruben (8+ yrs) Oliver (10+ yrs)
- Adrian (15+ yrs)
- Oscar (2+ yrs)
- Emeric (3+ yrs) Mai (4+ yrs) Noel (2+ yrs) Amy (2+ yrs)
- $240k
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