Recent studies conducted by UBS Wealth Management showed that London is no longer one of the most expensive cities in the world to live in. Previously, London was ranked as the 2nd most expensive city, but it recently managed to slip down to 22nd place. The question is: does this fall relate in any way to the property market?
Londoners have always known that they reside in one of the top most expensive cities in the world, especially in terms of transport, property purchase, rental and day to day living expenses. London has the highest fare for rail travel, nearly double the amount of other European countries. UBS based their research on the comparison of 144 goods and services.
Many will now wonder if this new, lower position on the list will have a more deep rooted effect, especially in relation to property. Estate agents in London see a positive future for the property market, saying that there are signs of a revival and the market as a whole is definitely heating up, providing some relief to homeowners who wish to put their home on the market or who are looking to relocate.
Recent research revealed that the rental market is also stabilising. Letting agents in London are witnessing the improvements first hand, saying that people who cannot find the right home to purchase right now have considered renting in the mean time.
The average price of property increased by 0.8% in August and experts believe that it is now easier for first time buyers to obtain a mortgage, which will result in younger people considering purchasing a home. Home loans are also beginning to show signs of increase with many more home loans being approved, which sends out the message that purchasing a home is within everyone’s grasp.
So, which city is currently the world’s most expensive city to live in? Oslo, Norway, has taken top honours as the most expensive city worldwide. Following closely on its heels are Zurich, Copenhagen, Geneva, Tokyo and New York. London was not the only city to fall down, some surprise fallers included Moscow, Mexico City and Seoul.
Unfortunately for Londoners, the city’s time at 22nd place didn’t last long, as the Pound has recently begun to strengthen and London is once again moving up the list of expensive cities. But even with this change, the property market still believes that the market is slowly improving.
Lauren Potgieter wrote this article