Why Are Software Developer Salaries Ranging from £80k to £250k?
£80k? £140k? Or £250k? Why have software developers salaries gone nuts?
So the good news is that Big Tech is hiring engineers again, and this usually drags other sectors up.
With London now ranked 7th in open Engineering roles behind San Fran, Seattle, New York, US (other) Bengaluru and Singapore.
But what does this mean for London salaries?
Why is the range for experienced Software Developers so broad?
My observation is that London based, experienced Software Developers are paid between £80k-£140. Not even including the hottest AI companies that are paying £250K.
The short answer is because every sector is chasing the same talent.
And they all pay differently. Let’s break it down 👇
Lowest-paying sectors
More cash-conscious, comp tends to start lower unless they're in fintech or AI, where early traction can boost offers. With equity used as the pull
→ Startups - (Pre-Seed / Seed / Series A).
Mid-market sectors
This is where most of the market sits. Salaries vary depending on sector:
→ VC backed scaleups (Series B to pre-IPO) excluding Fintech and AI.
→ Tier 2 enterprise software companies
→ Financial services (insurance, payments)
→ Legaltech, healthtech, etc , and other sector-specific platforms
Top-paying sectors (10% of the roles):
The top 10%, paying the premium salaries.
→ Late-stage VC scaleups in hot sectors like AI and Fintech
→ PE-backed companies in transformation mode (usually traditional businesses investing heavily in digital)
→ Tier 1 enterprise tech (Google, Meta, Amazon, Apple etc.)
→ Investment Banking
Top-paying Sectors (1% of the roles)
AI companies are distorting the entire salary landscape with Anthropic advertising Software Developer roles at £250k+ in London. While that’s not representative of most offers, it is absorbing the top 1% of engineering talent, and it pulls the rest of the market up.
This is all before you even touch on:
The tech stack (In no order, that would be a 10 page article in itself) - Python, LLM, AWS, Java, C#, Rust, Javascript, Node/JS, Typescript, React, Django, Go, C++
Role focus (backend > full stack > frontend)
Working culture WFH v in office - (in office pays more - although good luck asking a developer to spend 5 days in the office)
So what does this mean for your company?
Software Developers in the market for a new role aren't comparing your company to your nearest competitors, they're comparing you to the overall hiring landscape.
With £100k–£110k becoming the default “medium” for experienced engineers.
💡 Are you a Founder, Operator, or Investor at a VC/PE-backed company?
If you’re thinking about driving revenue, replacing underperformers, launching a new market, or gearing up to raise, then we should talk.
We partner with high-growth companies to place proven operators, strategic builders, commercial leaders, and transformation-focused execs.