London named second best city in the world - but it's not all good news

London has been named the second best city in the world in Oxford Economics’ Global Cities Index.The leading global economic advisory firm assessed the strengths, weaknesses and future potential of the world’s 1,000 largest cities.London was named in second spot in the list for the second year running, with New York named as the best city in the world.In the 2026 report, Oxford Economics said: "London remains one of the clearest examples of a truly global city. Its influence extends across business, science and technology, education, and the arts, giving it a reach that few other cities can equal."It said: “Alongside its deep base of knowledge-intensive industries, diverse and highly skilled workforce, strong position in data centre development, elite universities, and unmatched cultural offer, London is well placed to remain one of the world’s top-performing global cities for years to come. The FTSE 100 closed up 56.32 points (Yui Mok/PA)PA ArchiveThe report said London was placed seventh in its "economics" category, thanks to the scale of its economy— the fourth-largest worldwide —and its track record of stable growth.It was named the best in the world for "human capital". The report said this was due to "its concentration of higher education institutions and ability to generate some of the highest levels of educational attainment globally. "London also benefits from its continued appeal to highly educated migrants, with foreign-born residents accounting for around 40% of the population. For employers, that provides access to a deep and varied talent pool; for the city, it supports population growth and a younger demographic than many peer cities, such as New York, Tokyo, and Paris".It was also praised for its performance on the environment - with polices such as ULEZ praised for improving air quality.While it was named 67th for the list in the environment, the report said this was a "strong" performance given its size. "It compares favourably with peer cities on carbon emissions intensity, supported by its services-oriented economy with a relatively low carbon footprint", the report states.But London scored poorly in what many Londoners might consider the most important category, quality of life. It was named a lowly 147th in the ranking. "The city’s wealth is concentrated in a relatively small number of neighbourhood," the report stated. "London’s Quality of Life score is also weighed down by its housing affordability crisis, with residents devoting a larger share of their income to housing costs than those in nearly any other city of the world. Read More"This reflects deep-rooted constraints on the supply of affordable homes, which will take both time and political resolve to address."Top 10 best cities #8 San Jose (United States)