UK emigrant dilemmas over when to sell property

With real estate prices soaring in Britain’s southerly counties and London, prospective migrants and expats face dilemmas over selling or renting their UK homes.

The UK’s property sector is now in better shape than at any time in the last seven years, with average prices across the board up by 3.1 per cent and London prices soaring by 8.1 per cent. For those wishing to emigrate and expats who still own property in the UK, this poses a dilemma.

The recently-introduced government Help to Buy and Mortgage for Lending schemes are responsible for much of the increase, as they allow first-time buyers and those buying to let to get easier loans. The well-publicised shortage of homes for sale across the country has also pushed prices higher.

Although the above is good news for expats planning to leave and never return, for those emigrating to take advantage of career opportunities or with strong family connections still in the country it’s another story. In spite of a recent survey suggesting that 80 per cent of expats had no intention of ever returning, recent studies indicate a tendency amongst established expats to let rather than sell.

Retirees are the most likely to burn their boats on the way to countries with warmer weather and a cheaper cost of living, but even in this sector there’s an increase in those preferring to rent out their UK homes. Most European countries’ property markets in serious decline, leaving those who wish to return due to changing circumstances or poor health unable to sell and move back.

Southeast Asian property markets have been on the rise for several years, tied to the price of land and increasing urbanisation. However, the start points in countries such as Thailand and Cambodia were so low that a considerable increase still wouldn’t fund a comparable UK property.