London ranks sixth most expensive city in the world
London is the sixth most expensive location to live in the world, a report by ECA International revealed.
The latest Cost of Living report found that London is so expensive because of high rental accommodation costs.
The strength of the pound also pushed London, along with other UK cities such as Edinburgh and Manchester, up the list. The pound has rebounded this year, rising 8 per cent against the US dollar, meaning that expatriates living in the UK may find goods and services more expensive.
Steven Kilfedder, production manager at ECA International, said: “The average rental prices for expatriates in the UK captial are significantly higher than the vast majority of its European neighbours, pushing London towards the top of the rankings.”
European cities dominated the rankings, making up 40 of the top 100 most expensive locations in the world, due to a strong euro, pound and Swiss France.
However, reduced travel due to Covid has pushed some tourist cities down the list. Reykjavik’s fallen to 63rd due to lost tourist activity.
Kilfedder said: “The pandemic has decreased the demand for housing and we have seen rents drop in many tourist locations such as Thailand, Vietnam and Turkey.”
Despite a global recession hitting developing economies hard, many African countries rose in the rankings. The strong euro resulted in countries with pegged currencies moving higher up the list. Congo’s Brazzaville, the continent’s most expensive city, rose 10 places to 19th.
Trade tensions, lower oil prices, and the struggle to contain Covid all drove the value of the dollar down, making some locations in the US more affordable for expatriates.