The Press and Journal (Inverness, Highlands, and Islands)
Expats feeling pinch as living costs spiral
Eurozone: Rising inflation means dwindling spending power
Jobs overseas and retirement homes in the sun in popular holiday hotspots come at a hefty price, new figures show.
The Post Office says financially-UK citizens living abroad are seeing their living costs rise at almost three times the inflation rate in this country.
Household bills, motoring and eating out costs are up by about 8% on a year ago, its survey of 730 people living overseas found.
Two-fifths of expatriates said their overall living costs had soared by more than 10% in the past year, with food and household bills, particularly electricity, among the biggest concerns.
More than half (52%) of property owners surveyed said the value of their home had fallen, marking an increase on two-fifths (40%) who said this a year ago, as the dream of living abroad turns sour for some.
By contrast, the housing market in this country has been seeing a revival in recent months, with prices going back on an upward march amid strengthened demand from buyers.
John Willcock, head of Post Office transactional services, said: “While house prices are reportedly on the rise in theUK, property values are still falling overseas – particularly in the eurozone.
“Rising prices for basic household essentials are leaving little money for extras like eating out.”
Expats living in Portugal and Greece have been particularly badly affected by rising prices, the research found. Almost one in five expats living in Portugal said they had seen a rise of more than 20% in the cost of household essentials.
Three in 10 UK citizens living in Greece said their living costs had risen more than 20%.
Seven in 10 (70%) expat property owners living in Spain said the value of their home had fallen in the past year, and almost one fifth (18%) believed the value to have dropped by more than 30%.
Just 14% of expats in France said they were unaffected by rising prices, compared with nearly onequarter (24%) a year ago.
The pressure on expats has eased a little compared with last year, when their typical annual inflation rate was put at 11%.