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London is now the world’s most expensive city

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 has become the world’s most expensive city to live and work due to the increased costs of renting homes and office space.

The “Live/Work Index Top 12” listing by international real estate adviser Savills puts the UK capital ahead of , which has topped the ranking for the last five years.

DON’T MISS: 10 REASONS TO VISIT LONDON THIS YEAR

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New York and Paris come in at third and fourth place, while Tokyo sits in fifth position. The index measures the total costs renting residential and office space in 12 of the leading world cities.

According to the report, a strong pound means it now costs US$121,000 per year to accommodate staff in London.

SEE ALSO: WHICH CITY HAS THE MOST BILLIONAIRES? LONDON

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Hong Kong, meanwhile, boasts residential property prices 40 percent higher than London. For the full report, see (pdf): pdf.euro.savills.co.uk.

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