London has been crowned the most expensive city to live in in the world, beating off other expensive cities such as New York and Hong Kong.

The cost of accommodating an employee in London is more than double that of Sydney, Los Angeles or Chicago according to the yearly Live/Work Index from Savills .

The study measured the combined cost of residential and office rental per person per year across the world's cities and found that London came to $112,800.

This comes as no surprise, as London has been at the top spot of the index since 2014, and is a whopping 18% more expensive than it was in the last five years.

Compared to Rio de Janeiro, in last place, London is more expensive by $96,300.

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Head of Savills world research, Yolande Barnes, said: “The productivity of cities and their value to global businesses clearly has a pronounced effect on demand and hence rental costs.

"The highest ranking global cities, London and New York, are also the most expensive for businesses and workers to occupy.

“World cities can become a victim of their own success when rents rise to the point where affordability becomes an issue.”