'Foreign currency fluctuations affect expats' lifestyles'

The credit crisis has had a significant impact on the cost of living in some major cities, according to industry experts.

Research by financial consultant Mercer has revealed that recent foreign exchange fluctuations are likely to have increased household bills for expats.

In addition, a sharp decrease in rental values is also believed to have had a negative effect on the incomes of UK emigrants.

The survey shows that the most expensive destination for UK emigrants is now Toyko, with Osaka in second place and Moscow third on the list.

Nathalie Constantin-Metral, Mercer senior researcher, said: "The cost of expatriate programmes is heavily influenced by currency fluctuations and inflation rates."

However, European destinations such as Paris, Rome and Amsterdam have all become cheaper destinations due to the recession, meaning they may see a rise in foreign exchange transactions as Brits flock to these cities.

In other news, property expert HomesOverseas.co.uk recently highlighted capital cities as ideal destinations for property investments as they may be the first regions to recover from the credit slowdown.

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By Linsey Summers