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Economic Development

Birmingham named º£½ÇÊÓÆµ's second most expensive city for expats

New research says cost of property and strength of pound make it a pricey place for foreigners

Birmingham which has been ranked the º£½ÇÊÓÆµ's second most expensive city for expats to live in

Birmingham is the º£½ÇÊÓÆµ's most expensive city outside of London for expatriates to live in, according to new research.

The city ranks in 90th (2013: 135th) place in a countdown of the world's 211 most expensive cities while London places in 12th (2013: 25).

The surging cost of property and strength of the sterling have been cited as reasons for the high ranking in the research by Mercer which is designed to help multinational companies and governments set the size of compensation allowances for their expatriate employees.

Other º£½ÇÊÓÆµ cities featured include Aberdeen (94th), Glasgow (108th) and Belfast (120th).

The survey compares the cost of housing, transport, food, clothing, household goods and entertainment around the world and currency movements are measured against the US dollar.

Ellyn Karetnick, º£½ÇÊÓÆµ head of Mercer's international mobility practice, said: "This year, º£½ÇÊÓÆµ cities have surged in the ranking, mainly as a result of a strengthening of the British pound against the US dollar.

"The º£½ÇÊÓÆµ's soaring housing market has also had an impact, with added pressure on the rental market as many buyers face difficulties in obtaining a mortgage.

"Glasgow and Birmingham have experienced the greatest jumps as they have had significant cost increases on goods and services and rentals."