A study found that London has ceased to be the most expensive city in which to work and live in the world.
England’s capital city used to top lists as most expensive city for living in, but is now ranking third behind Hong Kong and New York, say Savills, and estate agent.
Experts agree that the drop from the number one most expensive to the third is due to the devaluation of the pound that occurred after Brexit passed.
Reasons and Costs
They also reported that accommodation for Londoners, including housing and rent costs, is now totaling £71,000.
This is in contrast to New York (£90,700) as well as Hong Kong (£85,000) , which are both rated as more expensive now.
However after the pounds lower rates, London is now ranked a but closer to neighboring Paris at £60,900 as well as Tokyo, £60,000.
This change is reported by Savills Live-Work Index, who put together the data annually for companies to use and compare costs of business in varying cities worldwide.
Housing costs in London make it 10% cheaper now than it was in December of 2008.
Director of Savills World Research, Yolande Barnes, stated: “The real test of whether a city is good value for occupiers lies in how productive an organization can be in that city and how competitive a city is in attracting human capital to its job market.
“Cities may become more or less competitive on a short term basis but it is their long term costs that need to be taken into consideration when signing leases or building accommodation.
“For successful organizations, business location is a long-term play, not a short-term decision so sound business fundamentals are of course far more important than decisions based on the cost of accommodation at a given point in time.”
“London’s relative advantage may be eroded if sterling rallies but our view is that the appeal of London as a world city will continue.”