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.
Its not just about money. Anyone who has spent time further south towards the Mediterranean will know that the weather is usually a lot better, the air quality is better and you feel a lot healthier.
Many expats expect to be able to combine the UK and expat lifestyles, but it is easier and cheaper to change to local conditions. There is a big difference between spending 2 weeks in the sun and living there for 12 months.
Also many of the problems were caused by the poor state of the pound and that is going back the other way now.
The poor state of the pound has certainly been a factor, but what has amazed me over the last fifteen years has been the extraordinary rise in prices in southern Europe. In Spain, prices of everyday things have rocketed, while wages have remained static and low. In Spain and in Greece, it is very difficult for people on ordinary wages to pay for ordinary things or to run a household.
the pound is doing better against the euro, or more likely the euro is doing worse against the pound. In any case that is a bit of good news for expats living off UK pensions.
France has always been expensive, its just a case of re-adjusting to local conditions. Oddly Spain is the place to go for DIY materials especially paint, which is expensive in France. Not really an essential, but maybe an indicator.
Britain is cheap, partly(or mainly) because of the large number of Pound Shops. I have noticed that in France, where these shops do not exist, the 'poundshop' ranges in the supermarkets have been dropped. Not too certain why. I had managed to pick up some good stuff, but when I went shopping in April this year, both of our local supermarkets had no 'pound shop' type stuff, and this is a relatively poor area.
