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Aberdeen has taken the second-biggest tumble in this year's global rankings of the world's most expensive cities in which to live, with all UK cities dropping significantly in the wake of the weakening of the pound.

The most expensive, according to Mercer 's survey of 209 cities around the globe, is the Angolan capital of Luanda. That pushed Hong Kong down to second place, followed by Tokyo, Zurich and then Singapore.

All UK cities dropped significantly, and although London remains one of the world's costliest cities, it fell by 13 places to a ranking of 30. Aberdeen fell 61 places to 146, followed by Birmingham, down 51 at 147. Glasgow (161) and Belfast (170) dropped 42 and 36 places respectively.

Kate Fitzpatrick, leader of Mercer's global mobility practice in the UK, said the weakening of the pound before and after the EU referendum took its toll on the rankings of British cities.

“Aberdeen saw the second-biggest drop in the overall global rankings, only behind Cairo, due to a significant softening in the housing market as a result of the slow-down in the energy sector,” she said.

“However, London did not drop as far as may be expected, with steep prices keeping London as one of the most expensive cities for expatriates world-wide. The capital's rental costs remain at the higher end globally and have remained stable, or increased slightly over the last year as construction can not keep up with demand.”

The survey is designed to help multinational companies and governments determine compensation allowances for their expatriate employees. New York is used as the base city and all cities are compared against it.