London has a massive affordable housing shortage. London councils are moving tenants to other cities because of new government limits on state aid for rent payments[1] Earning £35K, expect to spend about 2/3rds of your salary on rent. A 1 or 2 bedroom flat in a 'normal' part of town will cost you at least £1300/$2000 per month.
[1] http://www.guardian.co.uk/society/2012/apr/24/tory-westminst...