London, is now the world’s 24th most expensive city in which to live, according to the Economist Intelligence Unit (EIU). The EIU compiles the ‘cost of living’ index every year and London’s current rank is a spectacular fall of 18 places compared to 2016 when it was in at number six.
The reason for the drop has been put down to the fall in value of the pound after Brexit. That means that foreign currencies get a lot more for their money, making London a desirable (and cheap) place to visit.
London’s current position is the lowest it’s been for 20 years and means that cities New York, Paris, Seoul and Copenhagen now have a higher cost of living than our capital city. The first and second most expensive cities in which to live are Singapore and Hong Kong respectively – the same positions they held last year. The EIU estimate that you’ll pay about one third more for things in Singapore than you would in London with cars and clothes being the most expensive items on the shopping list.
So, if you’re bemoaning London congestion charges and the cost of car insurance to keep and drive your car around town, then spare a thought for Singaporeans. The average annual cost of maintaining a car on the island is just over £15,000 a year with insurance costing more than £1,100 (and you thought we had it bad).
But while our poor pound means bargains for holiday makers coming into Britain, it’s another story for the rest of us, as a weak sterling means our money doesn’t go as far as it used to. Imports are more expensive so we’re likely to see the cost of our weekly food shop increase as well as the cost of our clothes – most of which come into the UK from abroad.
So, while the UK becomes a holiday hotspot, us Brits might have to tighten our belts a bit – and that means getting value where we can. Whether it’s your home, car, pet or travel insurance, we can help you stretch those pounds – just check out our top tips. And if you want to look after what you’ve got and make it grow, then why not take a look at savings accounts and cash ISAs and start building a little nest egg for whatever the future brings.