British expats report steep rise in the cost of living

New research suggests that the cost of living for British expats is rising at a higher rate than it is for those living in the UK. According to the Post Office Expat Payment Index costs have risen by an average of 11 per cent. In some areas in Europe where the economies are struggling the figure is closer to 15 per cent.

Of the 900 expats who were interviewed for the survey half said that their expenditure had gone up by 10 per cent and two out of every five said they thought expenditure was 20 per cent higher than it was last year.

Three-quarters of the respondents said that the value of their home had either remained static since a year ago or actually gone down. Many expats admitted to being concerned about the future and said that they were going to have to start making cutbacks to survive.

The high cost of living is badly hitting people who have chosen to make their home in Cyprus, Spain and Portugal. Two out of every five respondents living in Spain said that the cost of eating out had risen by 15 per cent compared to a year ago.

Around a third of those who have a home in Cyprus said prices had risen by 20 per cent. One in five said the value of their property had fallen. Two fifths of those living on Portugal said that since last year their living expenses had increased by 20 per cent.