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Capital cheaper than New York for first time in seven years
Peter Dominiczak and Sri Carmichael10.03.09
The cost of living in London has dropped dramatically as a result of the recession and is now cheaper than New York for the first time since 2002, according to research out today.
London has fallen to the world's 27th most expensive city from eighth place six months ago, according to a survey by the Economist Intelligence Unit.
At the start of last year and before the credit crisis hit, London was the third most expensive city in the world.
According to the figures, New York is now the 23rd most expensive city, from 39th six months ago, meaning that for the first time in seven years, prices in London for food, alcohol, utilities and clothing have dropped well below those in the Big Apple.
The Mayor of London, Boris Johnson, welcomed the findings. He said: "The results of this survey are timely and heartening. During the downturn, it is important we continue to celebrate and advertise the richness and diversity of our unique city and the world-beating attractions, galleries, exhibitions, theatres and restaurants on offer here.
"Overseas visitors are crucial to the capital's economy and I use every opportunity I can to promote London and attract visitors whether at home or abroad. We are working closely with Visit London to ensure that everyone from Seattle to Shanghai knows that there has never been a better time to visit London and get great value on every pound, dollar, euro or yuan spent here," he said.
Jace Tyrrell, of the New West End Company, which represents businesses in Oxford Street, Bond Street and Regent Street, said: "We've seen an incredible increase in European visitors in the last six to eight weeks - walking down Oxford Street on a Saturday now feels as if you're in Paris."
Mr Tyrrell said the influx of visitors is helping the capital's economy during the financial crisis. He added: "The spend by international visitors from outside Europe is up 38 per cent in the past couple of months. We're fortunate the tourists are here during the recession." Ken Kelling, of Visit London, said: "There has never been a better time to visit London. It is now 25 per cent cheaper for an American to come to London than it would have been this time last year."
The worldwide cost of living survey compares the price of around 160 items, ranging from food staples, taxi charges, newspaper prices, clothes, electronics and household goods. It does not include accommodation costs or house prices.
Tokyo was the most expensive city on the list, followed by Osaka and Paris.
Reader views (11)
I lived in both cities in my 20s. I prefer NYC. I really don't like pretentious british attitude and yucky foods in London..Life in NYC is a lot more easy going..As for diversity, London is more Indian and Middle Eastern whereas NYC is more like South American and Asian, which is more interesting for me...I am Australian by the way.
- Jeff, Sydney, AUS
London, cheap who do they think they are kidding. As for quality of life, we just dont compare with our european neighbours. Our Transport, crime, health, weather and costs are all at the wrong end of the social scale.
- Mr S.Port, London
I lived in NYC for 4 years and then moved here; 4 years ago. I believe NY is cheaper and safer by miles. The cultural diversity of London surpasses that of NY, but the quality of life and general sense of community and happiness that exists in NY is not to be found ANYWHERE in London unfortunately. I'm Irish by the way, so no allegiance to either country........
- Dg, London
I don't understand why everybody is so negative about London.I have been to New York. Yeah it was great but I would not live there I prefer London, if you get fed up over here you can always go to Europe with the Eurostar unlike the USA where you have to be mega rich to get a helicopter and go to the Hamptons by car it takes ages. About cost of living I thought New York was expencive as well.
- M, London
London isn't dangerous, the murder rate's down 50% since 2004 from about 20 to nearer 10 per month. Now go and check New York's figures. It's remarkably safe compared to other UK cities, too. It's entirely mythical that we're somehow uniquely Terrorised by Evil People.
All this makes it imperative that Boris listens to London's businesses and puts his hand in his pocket to help them take advantage of this situation, keep people employed and keep London ticking over. We have a golden opportunity to turn the pound's decline to our advantage, all it needs is political will and the desire to see London succeed. Step away from the electric sportcars, Boris, and let's have some executive action for a change.
- Tom, London, UK
Quality of life in new york is significantly higher than london
- Ben, canada
The secret of living cheaply in London can be explained by any old age pensioner; who do not live above their means and income.
Soup kitchens give free meals; and cardboard homes do not involve council tax extortion.
Supermarket waste bins provide out of date food; free to all who get there first.
Younger members of London’s population; are very spoilt; they eat to much, and get fat; and expect a warm home to live in; they are by and large far to soft for London life.
You may laugh at Pensioners; but we are living longer than ever before; some say it is because pensioners are stubborn and refuse to die; but in truth; it is all down to the brilliant thinking of our Socialist Government; they keep us lean; and treat us mean; and for that; we live longer than they ever wanted us to live.
Yes London is cheaper these days.
- Mickyinlondon, london
That's as maybe but London is far more dangerous.In the long term there's no financial gain.
- Steve, London
Yes but is it about the devaluation of the pound. It hasn't got any cheaper to live in London if you were already living here and being paid in pounds. I'm nopt being paid more and don't see prices having come down that much. Cheaper for visitors maybe. It's the worst of all possible worlds for Londoners.
- David, London
I also lived in New York for 8 years - and even if it is more expensiv,e the quality of life is infinitely better than that of London for similar cost. Plus I suspect this change in ranking is purely due to our currency being worth bugger all in the global money market these days!
- Matt, London, UK
i lived for 9 years in new york and live here in london now ... i don't care what the survey figures say, i know from experience that living in London is far more expensive than New York...
- Joanna, london
