Thousands hunt for a place in the sun
FED-UP Britons are scrambling to start new lives abroad but before joining them make sure you go for the right reasons, not just on a holiday whim.
Record numbers of people are quitting the UK for a new life abroad — and the mass exodus is being blamed on a combination of soaring living costs, taxation hikes and the fear of falling victim to crime.
More than 1,000 individuals are leaving these shores every day, according to figures compiled by the Office for National Statistics, with Australia, New Zealand, Spain, France and the US among the most popular destinations.
They are joining the estimated six million people who have made a new home for themselves overseas, while thousands more own holiday homes enabling them to divide their time between two countries.
Of those who have packed their bags for the last time, general disillusionment with the UK appears to be the primary reason behind their decision, according to research carried out by Foreign Currency Direct.
The mass exodus is being blamed on soaring living costs, taxation hikes and the fear of falling victim to crime.
Peter Ellis, chief executive of FCD, believes an increasing number of professionals — both young and old — are finding that better jobs and a more agreeable tax environment can be found abroad, as well as better weather.
“Eight in 10 Brits have fallen out of love with the UK, and the credit crunch fears have given them an added impetus to bale out and enjoy a less stressful and more cost-efficient life,” he says.
“While holiday homes are still a popular choice, we are seeing an upsurge of British homeowners relocating.”
It is certainly becoming expensive to live in the UK. According to the most recent edition of the Daily Express cost of living index, published last Thursday, the price of petrol has increased by 20 per cent over the past 12 months, while the cost of the average family’s weekly shop has gone up by 22 per cent.
Explore your reasons for going
Why do you want to leave the UK? Are you generally disillusioned with the way the country is going? Have you always dreamed about living in a warm climate? Do you want a better quality of life for your family?
There are plenty of reasons why people move abroad, but be honest with yourself. If you are running away from a relationship, or want to move on the back of a glorious holiday, it’s unlikely to work out.
Choose your location carefully
This will be the most important factor. Do you want to be as far away from the UK as possible or is it important to be based a couple of hours away by plane?
The ideal scenario is to spend a month or two in your chosen destination – or at the very least visit it at different times of the year. In addition, do plenty of background reading. There is no shortage of books and websites giving you the lowdown on virtually every place.
Take a dose of realism
Okay, you’ve decided that living abroad is your best option and know where you want to go. Before doing anything else you will need to ask yourself the big questions: How will you cope with being away from family and friends? Is a language barrier going to be a problem? How will you support yourself?
It’s all very well getting carried away with the romance of emigrating but you need to be realistic. Talk to expatriates to get first-hand accounts of what it’s like.
Work out your finances
How much have you got to spend? Where will you get the money to finance a move abroad? Do you plan to sell your UK home?
Many people choose to sort their mortgage out with a UK lender before even starting to search for a property abroad. Among the subjects you should discuss with your lawyer is ownership structure, because countries have different rules governing areas such as inheritance tax.
Search for a property
Don’t make the usual mistake of falling in love with a place on arrival and being blind to its faults. Take your time.
Ideally, search the internet for properties that are in your price bracket before you go house hunting abroad. Set up as many viewings as possible in advance and build a good rapport with local estate agents.
Be warned that agents can earn as much as 10 per cent commission for selling a property, so they may be tempted to say anything to persuade you to sign the contract.
Financial guidance
It is definitely worth getting the help of an independent financial adviser who can guide you on the best ways of looking after your money.
For example, if you are entitled to benefits in the UK you may find they are not payable in other countries. Similarly, others only apply within the EU or in nations that have specific agreements with the UK.
Find out what applies to your particular situation. Long-term financial planning should also be taken into account. It’s worth remembering that the amount of UK pension you are entitled to depends on how many years of National Insurance contributions you have made.
How is the strong euro affecting those abroad
Purse strings may be getting tightened at home due to the effects of the credit crunch but Britons pursuing a new life abroad are also feeling the pinch as the euro strengthens against the pound.
Not only has the cost of living for expats across Europe increased but the change has also made it more expensive to buy property abroad.
FCD’s Peter Ellis claims that foreign property prices have fallen to compensate for the exchange-rate issues, but acknowledges that the costs are still substantially higher than they were a year ago.
“British buyers are noticing that the cost of purchasing property abroad in euros is becoming more expensive as the currency continues to strengthen against the pound,” he says.
“The exchange rate for the pound against the euro has moved around 15 per cent since last August.
“This means that a British buyer would have paid almost £12,000 less for a property worth E100,000 at that time then he would have done today.”
