Henry and Eleanor spoke many languages and liked discussing law, philosophy, and history. So they gathered wise and learned men about them, who became known as courtiers, rather than people of social rank. They lived in the great and strong Tower of London, which had been extended beyond the original White Tower, as had other castles, so that the whole castle and grounds were defended instead of just the main building. The Tower of London was in the custody of one of the two justiciars. On the west were two strongly fortified castles surrounded by a high and deeply entrenched wall, which had seven double gates. Towers were spaced along the north wall and the Thames River flowed below the south wall. To the west was the city, where royal friends had residences with adjoining gardens near the royal palace at Westminster. The court was a center of culture as well as of government. The game of backgammon was played. People wore belts with buckles, usually brass, instead of knotting their belts.

London extended about a mile along the Thames and about half a mile inland. It had narrow twisting lanes, some with a ditch down the middle for water runoff. Most of its houses were two stories, the ground floor having booths and workshops, and the upper floor living space. Most of the houses were wooden structures. The richer merchants' and knights' houses were built of stone. Walls between houses had to be stone to a height of 16 feet and thatched roofs were banned because there had been many fires. There was poor compliance, but some roofs were tiled with red brick tiles. The population was about 40,000. There were over 126 churches for public worship, thirteen monasteries (including nunneries), and St. Paul's Cathedral. All were built of stone. The churches gave a place of worship for every 300 inhabitants and celebrated feast days, gave alms and hospitality to strangers, confirmed betrothals or agreements of marriage, celebrated weddings, conducted funerals, and buried the dead. The synod of Westminster of 1175 prescribed that all marriages were to be performed by the church. Church law required a warning prior to suspension or excommunication. Monastic, cathedral, and parish schools taught young boys grammar so they could sing and read in church services. Nuns taught girls. Fish but no meat was eaten on Fridays. There was dark rye bread and expensive white wheat bread. Vegetables included onions, leeks, and cabbage. Fruits included apples, pears, plums, cherries, and strawberries. Water was obtained from streams running through the town to the Thames and from springs. Only the rich, palaces, and churches could afford beeswax candles; others had homemade tallow [cow or sheep fat] candles which smelled and gave off smoke. Most people washed their bodies. Even the poor had beds and bed clothes. The beds were often shared. Few babies survived childhood. If a man reached 30, he could expect to live until age 50. Thousands of Londoners died during a hot summer from fevers, plague and the like.

In London, bells heralded the start and finish of all organized business. The sellers of merchandise and hirers of labor were distributed every morning into their several localities according to their trade. Vendors, craftsmen, and laborers had their customary places. Some vendors walked the streets announcing their wares for sale. There were craft guilds of bakers, butchers, cloth workers, and saddlers, as well as of weavers. Vendors on the Thames River bank sold cooked fish caught from the river and wine from ships and wine cellars. Cook shops sold roasted meats covered with hotly spiced sauces.

London Bridge was built of stone for the first time. It was supported by a series of stone arches standing on small man-made islands. It had such a width that a row of wood houses and a chapel was built on top of it. In the spring it was impassable by ships because the flow of water under it varied in height on either side of the bridge by several feet at half tide. The bridge had the effect of slowing down the flow upstream, which invited wherries and rowboats and stately barges of the nobility. In winters in which it froze over, there was ice skating, ice boating, and fishing through holes in the ice.

Outside each city gate were clusters of ragged buildings, small monasteries and hostelries, groups of huntsmen's kennels, and fencing schools. Outside one of the gates, a horse market was held every week. Horses wore horseshoes made of iron or of a crude steel. From the southwest gate of the city along the north river bank toward Westminster, there was a gradually extending line of rich men's mansions and bishops' palaces. On the southern bank of the Thames River was growing the disorderly suburb of Southwark, with fishermen's and boatmens' hovels, and taverns and brothels that were frequented by drunkards, rakes, and whores. On the north side of the city was a great forest with fields and wells where students and other young men from the city took walks in the fresh evening air. In some fields, country folk sold pigs, cows, oxen and sheep. Mill wheels turned at various streams. Near London in the country was a glass factory. At sunset, the gates of London were closed for the night. All taverns had to be closed, all lights put out, and all fires banked or covered when the bell of the church of St. Martin le Grand rang at 9:00 p.m. Anyone found on the streets after this curfew could be arrested. Gangs of young nobles or gangs of thieves, cutpurses, and looters roamed the streets after dark and sometimes rioted. Offenders were often beheaded and their heads placed on spikes on London Bridge.

Men in London had begun weaving cloth, which formerly had been done by women. Some of the cloth was exported. The weavers guild of London received a charter by the King in 1155, the first granted to any London craft: "Know that I have conceded to the Weavers of London to hold their guild in London with all the liberties and customs which they had in the time of King Henry [I], my grandfather; and that none may intermeddle with the craft within the city, nor in Southwark, nor in other places pertaining to London except through them and except he be in their guild, otherwise than was accustomed to be done in the time of King Henry, my grandfather …So that each year they render thence to me two marks [26s.8d.] of gold at the feast of St. Michael. And I forbid that any shall do injury or contumely to them on this account under penalty of 10 pounds [200s.]. Witness T[homas], Chancellor, and Warinus, son of Gerard, Chamberlain, at Winchester." The liberties obtained were: 1) The weavers may elect bailiffs to supervise the work of the craft, to punish defaulters, and to collect the ferm [amount owed to the King]. The bailiffs were chosen from year to year and swore before the mayor of London to do and keep their office well and truly. 2) The bailiffs may hold court from week to week on pleas of debt, agreements, covenants [promises for certain performance], and minor trespasses. 3) If any of the guild members are sued in any other court on any of the above pleas, the guild may challenge that plea to bring it to the guild court. 4) If any member is behind in his share of the payment to the King, the bailiffs may distrain his loom until he has paid this.

The weavers' guild punished members who used bad thread in their weaving or did defective weaving by showing the default to the mayor, with opportunity for the workman to make entreaty, and the mayor and twelve members of the guild then made a verdict of amercement of 1/2 mark [6s.8d.] and the workman of the cloth was also punished by the guild bailiffs according to guild custom.The weavers' guild tradition of brotherliness among members meant that injury to a fellow weaver incurred a severe penalty. If a weaver stole or eloigned [removed them to a distance where they were unreachable] any other weaver's goods falsely and maliciously, then he was dismissed from the guild and his loom was taken by the guild to fulfill his portion of the annual payment to the King. The weavers were allowed to buy and to sell in London freely and quietly. They had all the rights of other freemen of the city.

Paying an annual payment freed the weavers from liability to inconsequent royal fines. Failure to make this payment promptly might have led to loss of the right, hence the rigorous penalty of distraint upon the looms of individual weavers who fell into arrears.

Thus from the middle of the 1100s, the weavers enjoyed the monopoly of their craft, rights of supervision which ensured a high standard of workmanship, power to punish infractions of their privileges, and full control of their members. In this they stand as the prototype of English medieval guilds. These rights represented the standard which all bodies of craftsmen desired to attain. The right of independent jurisdiction was exceptional.

In Henry II's charter to London, London did not retain its right to appoint its own sheriff and justice given by Henry I. London's chief magistrate was the mayor, who was appointed by the King, until 1191. Then the mayor was elected yearly by the aldermen of the city wards and approved by the king. He was typically a rich prince chosen by the barons and chief merchants of London. The commoners had no voice in his selection, but they could still approve or disapprove of the actions of the city government at ward and folk motes. At certain periods, a king asserted royal power over the selection of mayor and governance of the city. There were three ways to become a citizen of London: being the son of a citizen, apprenticeship in a craft for seven years, and purchase of citizenship. London and Westminster growth led to their replacing Winchester as the capital.