London has dropped out of the 100 most expensive cities

 
Caroline Blennerhassett
Triggering Article 50 - British Politics
London is no longer one of the world's most expensive cities to live in (Source: Getty)

London has dropped out of the 100 most expensive cities to its lowest ranking for a decade, dropping behind Bangkok, Rio De Janeiro and Dublin for the first time in years.

According to ECA International’s latest cost of living report, London has become dramatically more affordable for overseas businesses to deploy staff to. The report reveals that London now offers better value for overseas businesses than Paris, Berlin, and Munich, ranking at 132nd compared to 65th in 2016 and down by a substantial 68 places.

The change has been driven by Brexit and the fall in sterling, ECA said. “Thanks to the weakened pound UK businesses are paying more to send staff to work overseas, but it is cheaper to bring staff to the UK,” said Steven Kilfedder, production manager, ECA International.

The cost of living survey compares consumer goods and services frequently purchased by employees in over 460 worldwide locations. The survey allows businesses to ensure that their employees’ spending ability is maintained when they are sent on global assignments. ECA International has been conducting research into cost of living for over 45 years.

Their latest report indicates that central London now sits just above Addis Ababa, Ethiopia, and Luanda in Angola has risen from 8th position last year to top ECA’s global rankings. “The cost of goods typically purchased by international assignees in Luanda have been pushed much higher in the last year.” Steven Kilfedder added. Swiss cities continue to dominate top 10 rankings.

Country

Location

Ranking 2017

Angola

Luanda

1

Hong Kong

Hong Kong

2

Switzerland

Zurich

3

Switzerland

Geneva

4

Switzerland

Basel

5

Switzerland

Bern

6

Japan

Tokyo

7

Korea Republic

Seoul

8

Venezuela

Caracas

9

Sudan

Khartoum

10

The survey results also indicate that comparative costs for British companies expanding and doing business abroad are increasing with Luanda, Hong Kong, Zurich, Geneva, Basel, Bern and Tokyo ranking as the most expensive cities. Cities across the US, Australia and New Zealand also remain more expensive than the UK with many South American cities re-entering the top 100 most expensive.

London has dropped down other cost of living rankings this year - in March research revealed the capital was 17 per cent cheaper to live in than Paris.

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