The rising cost of living in many parts of the world has made some European cities more affordable than others. According to a 2026 report by the European neobank bunq, it is now cheaper to live in Milan, Italy, than in Manchester, UK. In fact, one month of living expenses in London would be equivalent to five months in Chiang Mai, Thailand. The report highlights that while the UK remains competitive in certain areas such as groceries, energy, and broadband, rent prices are pushing up the overall cost of living in Britain. The report, known as the Working Abroad Index, compares the monthly living costs of 75 cities around the world. For example, someone living in Bristol, UK, would pay £1,614 per month—£298 more than in Barcelona, Spain. This difference adds up to over £3,500 annually compared to Barcelona, and more than £2,000 compared to Paris, £2,300 compared to Milan, and over £6,200 compared to Helsinki, Finland. In the UK, the average rent for a one-bedroom flat was £1,109 in Bristol and £1,695 in London. Only New York City, San Francisco, and Boston were more expensive globally, while Dublin and Amsterdam ranked second and third among European cities. Several UK cities, including Bristol (8th), Brighton (10th), Edinburgh (13th), and Manchester (14th), featured prominently in the index, largely due to rising rent costs. The Working Abroad Index is designed to help digital nomads—people who work remotely and travel frequently—find the most cost-effective places to live. It considers factors such as transport, utility bills, mobile phone costs, internet, and rent for a one-bedroom flat. Joe Wilson, chief evangelist at bunq, noted that while London being the most expensive city in Europe might not be surprising, it’s notable that cities like Brighton and Bristol, which are often seen as more affordable alternatives for remote workers, now cost more than other capitals and financial hubs. The full list of European cities, ranked by total monthly cost (excluding coworking spaces), shows a wide range of affordability, with some cities in Eastern Europe being significantly cheaper than those in Western Europe.