According to ECA International, a global mobility research company, London has now become one of the cheapest major cities in Europe for overseas workers since the 2016 Brexit referendum.
In its latest cost of living report, the firm said that as a result of the weakened pound since the leave vote, London has plunged from inside the top 50 global cities to 127th place, dropping by 81 places in the Cost of Living ranking since the Brexit referendum.
As an outcome of the weakened GBP since the 2016 Brexit vote, the cost of living in the cities of the United Kingdom is considered to be far lower as compared to many of the countries in Europe such as in Germany, Belgium, and France.
The report compares a basket of like-for-like consumer goods such as meats, vegetables, essential household goods, and groceries. It said that workers who are coming to London from the United States of America would find that the cost of living in the city is especially cheap. It said that this is attributed to the strength of the US dollar as compared to the value of the pound after the Brexit referendum.
According to the ECA, an average cup of medium cappuccino coffee only costs $3.51 in London, while it costs approximately $4.08 in New York and $4.78 in Hong Kong.
Steven Kilfedder, the production manager of the ECA, said that the sharp fluctuations in the value of the pound are attributed to the “political turmoil” may have an effect on the cost of living for those wo are coming into the United Kingdom.
He stated: “The cost of living in the UK has dropped significantly for overseas workers and visitors since the referendum along with the value of the pound. With the UK’s leave date fast approaching, all that can be certain is there will be more fluctuation in inflation and exchange rates as the nature of future relationships becomes clearer.”
He noted: “Until a Brexit deal is made, we will not have a clear idea on what this will mean for the UK’s cost of living ranking against other major financial hubs.”