New Zealand is top of the list of places ex-pats would prefer to live as it offers a high quality of life at reasonable cost, according to new research by Alliance & Leicester (A&L).

The mortgage lender claims that property prices in the country are one of the lowest in the western world with the average house price at £105,750.

On top of this, A&L claims the cost of food, drink and fuel in New Zealand is relatively low when compared with the UK.

Combining the cost of living and quality of life scores of developed nations, A&L found that the UK was eighth overall, with the top three spots going to New Zealand, Italy and Australia.

Simon Ripton, acting managing director of Alliance & Leicester International said: "New Zealand does on average appear to offer a high quality of life at a reasonable cost - attributes that many people value in their country of residence."

Meanwhile, a Bank of New Zealand survey found that 20 per cent of respondents expect the economy to get worse in the coming year, reports RTT News.

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