I woukd have thought London would be more as it was only second to Zurich in my hotel costs when I used to travel! I think here in Miami, US it is similar although the city has expanded and housing becomes cheaper outwards. $1,500 still seems low as I would say more like $2,000.
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Yes, you'd be living like a very poor person. London is really expensive. I'm talking of minimum hand-to-mouth stuff :)