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Article from The Institute for Public Policy Research, emigration, BBC

According to a new study, 5.5 million British-born people live abroad – almost one in ten of the UK population - which could create new business opportunities for UK financial advisers.

The study, by the Institute for Public Policy Research, was published on the BBC News website and claims that the high rate of departure has been masked by rising immigration.

Australia and Spain are the top destinations for British emigrants but an increasing number are looking to Asia. Figures from IPPR show a rise in the expat populations of the UAE, including Dubai (55,000), Pakistan (47,000), Singapore (45,000), Thailand (41,000) and China (36,000). In total, around 41 nations each have at least 10,000 permanent British residents.

The study also found that, over the last 40 years, around 67,500 more Britons have left the UK every year than have returned. The number of Brits opting to live permanently overseas has doubled from 53,000 in 2001 to 107,000 last year.

IPPR's research, using data from the International Passenger Survey and Office for National Statistics (ONS), found that young workers without families and retirees are most likely to leave. Out of the total that left in 2004, 40% were professional/managerial, 25.3% manual/clerical, 17.5% retired/carers, 9.3% children, and 7.9% were students.

Commenting on the report, its co-author Dhananjayan Sriskandarajah, said that this rise in emigration was being driven by the UK’s economic strength. "If current trends continue, we could expect as many as a million more British nationals to emigrate over the next five years," he said. “ Britain is truly at the crossroads of the global movement of people. Two-thirds of Britons who leave do so to seek employment abroad - and are replaced by skilled professionals from elsewhere in the world. When the going is good, Brits get going."

The BBC carried out a survey earlier this year on emigration attitudes, and found that the number of those hoping to leave Britain in the near future had doubled since 2003.

Buying for keeps

A recent survey by HolidayLettings.co.uk revealed that 42% of holiday homeowners never expect or intend to sell their overseas property. While 74% of these said that rental income was the most significant benefit of their overseas purchase, only 7% cited this as their original reason for purchase. More than half (51%) of holiday homeowners stated that their original reason for purchase was the advantage of low cost holidays, with 42% admitting that they had chosen their location because of easy access to and from the UK.

Indicating the impact of new lost cost flight routes in the last couple of years, and the rise of the novice investor, the survey showed that over half of the holiday homeowners questioned had only bought overseas within the last two years. T he majority of Holiday Lettings homeowners looking to keep their property have houses in Spain (29%). The firm also found that more Brits are looking for property inland.

Maintaining the lifestyle

With the Foreign and Commonwealth Office recently highlighting the rising number of British expats living in squalor in places like Spain because inflation has eroded their savings, IFAs and other financial advisers are in a key position to create new business by helping those planning to emigrate. Mortgage brokers can also help by sourcing a range of equity release options, like home reversion, which is already taking off in Spain.

Furthermore, recent changes to the way HM Revenue & Customs define residency could prove costly for expats. Tax specialists can also help those planning to emigrate to choose the most favourable tax environment as well as offerig insight into those places offering the best mix of lifestyle and investment prospects.