Expats see cost of living rise
Living costs for UK expatriates are rising at almost four times the rate of inflation for British residents, research suggests.
The dream of living overseas has gone sour for some, with costs rising by 11% on average since last year, increasing to 15% for people living amid the economic turmoil of the eurozone, the Post Office Expat Payments Index found.
Almost half of more than 900 expats surveyed said they were paying out more than 10% extra on household expenditure, motoring and meals out than last year. Nearly two in five thought that these prices had risen by more than 20%.
Nearly three quarters of expatriates also said the value of their home had remained static or fallen in the last year and one in 10 said prices had plummeted by more than a fifth.
Three quarters of people said they were worried about the future and they would be forced to make significant cutbacks this year because of the dents in their finances.
Families living in the UK have come under intense pressure from high living costs, high unemployment and low returns on savings.
However, there are some signs of the situation easing, with the Consumer Price Index (CPI) rate of inflation dropping to 2.8% in May, the lowest level since November 2009.
The Post Office research found that Spain, Cyprus and Portugal have been particularly badly hit by high living costs.
Two in five expats living in Spain said that the cost of eating out had risen by more than 15%, while 71% reported an increase of more than 10% year-on-year on fuel.
Nearly a third of those living in Cyprus said that prices had risen by more than 20%, with food prices seeing a particular increase. Meanwhile, 22% of people in Cyprus said their home had fallen in value by more than a fifth.
Two fifths of people living in Portugal reported year-on-year rises in living costs of more than 20%.
Four in 10 expats based in France said that their overall increase in costs was over 10%.
While sterling recently hit a new three-and-a-half year high against the euro, the study also estimated that people transferring funds abroad via some UK banks are "wasting" £13.17 in charges per transaction or £158 a year, rather than using a fee-free provider.
Just 3.5% of those surveyed said that they had not noticed an increase in living costs.
Revealed: Devastating impact of 'bedroom tax' sees huge leap in demand for emergency hardship handouts for tenants
Notes from a small island: Is Sealand an independent 'micronation' or an illegal fortress?
You thought Ryanair's attendants had it bad? Wait 'til you hear about their pilots
Revealed: Eerie new images show forgotten French apartment that was abandoned at the outbreak of World War II and left untouched for 70 years
Chloe Johnson death: Family of five-year-old British girl who died in a pool at in Egypt's Sharm el-Sheikh resort 'angry' that more wasn't done to save her
- 1 Stoke City investigate 'religious abuse' after 'pig's head is found in Kenwyne Jones' locker'
- 2 Gove’s lesson: spare the comma, spoil the child
- 3 You thought Ryanair's attendants had it bad? Wait 'til you hear about their pilots
- 4 Join Ryanair! See the world! But we'll only pay you for nine months a year
- 5 It’s official: thanks to Stephen Hawking's Israel boycott, anti-Semitism is no more
BMF is the UK’s biggest and best loved outdoor fitness classes
Find out what The Independent's resident travel expert has to say about one of the most beautiful small cities in the world
Win anything from gadgets to five-star holidays on our competitions and offers page.
£30000 - £40000 per annum + BENS: Progressive Recruitment: Drupal Developer A ...
£45000 - £50000 per annum + bens: Progressive Recruitment: C# WEB DEVELOPER Le...
£240 - £260 per day: Progressive Recruitment: WPF Developer (C#, VB.Net) North...
£85 - £120 per day: Randstad Education Cheshire: KS2 teacher needed to do PPA ...