London jumps into top 10 in global index of the most expensive cities

London has jumped into the top 10 in a global index which looks at the most expensive cities for expatriate employees

London has leapt into the top 10 of the world's most expensive cities for expats, according to a global index.

The city climbed nine places from last year to eighth spot in Mercer's 2024 cost-of-living city ranking. Just below New York on the list, London's rise was attributed to factors such as the general cost of living and rental prices. Hong Kong maintained its position at the top of the list, followed by Singapore, while Zurich, Geneva and Basel completed the top five.

Other UK cities featured included Edinburgh at 53, Glasgow at 68, Birmingham at 78, Aberdeen at 82, and Belfast at 87. Paris came in at 29th place and Dublin at 41. The index, which covers 226 locations worldwide, compares the cost of over 200 items in each location, including transport, food, clothing, household goods and entertainment.

Abuja in Nigeria was ranked the least expensive city in the survey, coming in at number 226. Compiled by Mercer, a Marsh McLennan business, the ranking assists multinational employers in planning compensation packages for their employees.

Rising housing costs globally have posed challenges for employers, with fluctuating inflation trends also impacting workers' compensation packages, according to Mercer. The report highlights that the struggle to attract and keep the best staff is made harder by rising living costs, which can also push up wages and other work-related expenses. It can also make it tougher for workers to move around and bump up how much it costs to run a business.

Yvonne Traber, who leads Mercer's global mobility team, said: "Cost-of-living challenges have had a significant impact on multinational organisations and their employees.

"It's important for organisations to stay informed about cost-of-living trends and inflation rates and seek input from employees on these issues to effectively manage their effects. High living costs may cause assignees to adjust their lifestyle, cut back on discretionary spending or even struggle to meet their basic needs."

Traber suggested that companies might think about giving staff extra money for housing or other kinds of help.

Mercer has released its 2024 rankings of cities based on the cost of living:.

1. Hong Kong.

2. Singapore.

3. Zurich, Switzerland.

4. Geneva, Switzerland.

5. Basel, Switzerland.

6. Bern, Switzerland.

7. New York, United States.

8. London, United Kingdom.

9. Nassau, Bahamas.

10. Los Angeles, United States.