Credit Crunch

Brits move abroad to escape credit crunch

More and more Brits are leaving the UK to set up home abroad due to the credit crunch, according to currency specialist ‘HiFX’.

Last year, record numbers of UK citizens moved abroad permanently and the company states that enquiries about emigration have increased by 30% this year.

The findings suggest that Brits may be feeling the economic effects of the credit crunch and are worried about debt and personal finance issues. However, despite the rise in interest in emigrating, actual emigration figures have only increased by 10% so far this year.

Director of HiFX Mark Bodega, said, “The problem that many people are being confronted with is a simple one - they cannot sell their UK property.” The generalised fall of property equity is causing people to delay their plans, he continued. 

In August, Abta suggested people are continuing to take holidays despite the credit crunch and suggested that now more than ever, people felt they needed a holiday to escape worries at home. 

A study from Alliance & Leicester International (ALIL) has also revealed that 52% of British ex-pats stated that they moved abroad to avoid the high cost of living in the UK and to improve their standard of living.

Over a fifth of ex-pats are choosing the Middle East as their new home, while Australia and the USA continue to be popular destinations for UK migrants. In Europe, Spain and France continue to be the most popular destinations among Brits seeking a better and cheaper way of life.

British pensioners wanting to maximise their pension funds figure highly in the exodus according to Bank of Scotland International. 31% of over 65’s are considering living abroad and 11% said that New Zealand would be their preferred destination, with Australia, Canada, France and Spain also proving popular retirement destinations.

Many in the UK who can afford to buy a second property abroad - as well as keep their current UK home - are choosing to rent out their property in Britain and in doing so, are funding their new lives abroad as well as keeping an investment in the UK.