Expats return home to the UK |
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| Wednesday, 29 April 2009 08:53 | |||
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More than double the number of British Expats are selling up their life in the sun and returning to the UK since the impact of the economic crisis hit last year, according to foreign currency specialists HiFX. The pound’s fall to historic lows in recent months has meant that the cost of living or running a holiday home on the continent has risen to unaffordable levels for some, while others are looking to cash in on sterling’s weakness by selling up. HiFX manages the transfer of over £200 million back to the UK each year. The firm has seen a 180% increase in the number of euro to sterling transactions and a 120% increase in the number of US dollar to sterling transactions in the past six months, compared to the same period last year. From customer feedback, HiFX believes that almost 40% of repatriating Brits are being forced to do so as the cost of living rises, whilst another 25% are cashing in their international assets which are now worth significantly more than they were as a result of sterling’s significant depreciation. UK citizens who own a holiday home in Europe or are spending long periods of time on the continent are being particularly hard hit. Since October 2008, they have seen the value of the pound in their pocket plummet by just over 20% and as a result, many who stretched their finances to fund their dream home in the sun find themselves unable to afford their euro mortgage payments, or even general living costs. British pensioners have been particularly hard hit. Not only have they seen the euro value of their pensions fall dramatically, but also those who were living off hard earned savings have seen their interest rates demolished due to the credit crunch. But there is a silver lining for Brits who own property and other assets such as savings and investments in Europe. On the flip side, current exchange rates mean that the value of these assets has appreciated significantly and as a result, many are taking the opportunity to cash in their investments to pay off debts or purchase property in the UK following the significant fall in UK property prices.
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