More than two-thirds of expatriate Britons in the European Union are considering returning home to live because of the economic crisis, according to a new survey out yesterday.
Fears over job security abroad, falling property prices, and a weak pound are forcing a rethink, according to a poll commissioned by Moneycorp, the UK foreign exchange specialist.
The survey of 250 "in-depth" telephone interviews was conducted last month and found that 70 per cent of the sample were now pondering the benefits of packing up and going home.
Job security was the most common reason given, with one in three (35 per cent) worrying about losing their job.
Falling overseas property prices was the second biggest concern, closely followed by the weakening pound, which for many paid in sterling has meant a dramatic cut in income or pensions.
Britons living in Spain, where the recession is biting hard, are the most worried about losing their jobs, with 41 per cent afraid they will be affected by the current 18 per cent Spanish unemployment rate.
More than a quarter (28 per cent) of British expatriates living in Spain, and more than one third (33 per cent) of those living in Germany, are claiming a sterling pension, and rely on it as their main source of income. An average of 70 per cent have repatriation in mind, says the survey, while more than a third in some EU counties say they are definitely going back to the UK - including 38 per cent of British expats in Germany, 37 per cent in Spain, 34 per cent in Italy and 33 per cent in France.
David Kerns, Head of Private Clients at Moneycorp, said: "Our research highlights the real impact of the downturn for Britons living abroad. As businesses across Europe continue to cut costs, we could see a surge of expats return to the UK.
The survey showed that nearly a quarter (22 per cent) of expats do not monitor currency markets to avoid losing out when making overseas payments.
Mr Kerns commented: "In light of the worsening economic conditions, Brits living abroad should take immediate steps to obtain a clear overview of where their financial risks lie.
"If relying on income from the UK, British expats should consult a currency specialist to understand how to guard their finances against currency risks."