The cost of living in the U.K. – everything from housing to food and energy prices – continues to soar with no end in sight after Brexit.
Although rising inflation is a global problem affecting virtually every economy in the world, some countries still provide a more affordable living.
U.K. inflation rose to a historic 40-year high in July as surging food and energy prices continued to strain household budgets.
According to the latest estimates by the Office for National Statistics, the U.K. consumer price index (CPI) rose 10.1% over the last 12 months leading up to July.
Additionally, core inflation came in at 6.2% over the last year leading up to July 2022. Food and non-alcoholic beverage prices have also continued to rise with an overall increase of 2.3% between June and July 2022 – the highest monthly increase since May 2001.
With all this mind-numbing data, many Brits might be asking themselves – are there better options abroad for a more affordable way of life?
The latest figures from cost-comparing data site Numbeo.com (August 2022) estimate the monthly costs of living in the U.K. are £2,363.18 (not including rent) for a family of four and £683.25 for a single person.
Household services (heating, cooling, water, and electricity) in the UK average £177.91 per month as of August 2022 – the sixth highest country for utility costs globally.
By comparison, the average monthly costs of living in Spain are the Euro equivalent of £1963.13 (without rent) for a family of four and £550.49 for a single-person household. Monthly energy services in Spain average £106.58 – that’s 40% lower than the U.K.
While average salaries in Spain are about a third lower than those in the U.K., remote workers or retirees living on a fixed pension could greatly benefit from much lower average consumer prices (including rent), which are 23% lower overall.
Many Choices, Many Variables
Other attractive options in Europe could also offer a lower cost of living for Brits looking to relocate. Consumer Prices (including rent) in Portugal are about 30% lower than in the U.K.
Malta and Italy also come in cheaper at almost 9% and 12% lower respectively. Greece and Croatia will cost expats 30% and 37% less to live respectively.
For those considering moving further away, the overall cost of living in Cyprus is 14% lower and Egypt with its popular beaches along the sea offers an overall cost of living at nearly two-thirds lower than the U.K.
Whether it’s remote workers just riding out the storm temporarily, employees rebasing to an overseas company or pensioners looking for a comfortable place to retire, there are, at least for now, some attractive alternatives.
With so many variables of uncertainty for people trying to navigate through shaky economic times in a post-covid world, moving to a more affordable place abroad might just be a solution to seriously consider.
The views expressed in this article are not to be construed as personal advice. You should contact a qualified and ideally regulated adviser in order to obtain up to date personal advice with regard to your own personal circumstances. If you do not then you are acting under your own authority and deemed “execution only”. The author does not accept any liability for people acting without personalised advice, who base a decision on views expressed in this generic article. Where this article is dated then it is based on legislation as of the date. Legislation changes but articles are rarely updated, although sometimes a new article is written; so, please check for later articles or changes in legislation on official government websites, as this article should not be relied on in isolation.
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