Why South African expats are leaving the UK and returning home

Two decades ago, London promised stability and opportunity. Now, with soaring taxes, Brexit restrictions, and a crumbling passport value, thousands of South Africans are asking: is the British dream finally over?

In the early 2000s I followed friends, family and a girlfriend at the time to London, settling initially in Wimbledon.

Like thousands of other South Africans in the UK, I was drawn by the promise of stability, opportunity, and escape from the challenges back home.

For decades, London was the promised land for skilled South Africans fleeing load shedding, crime, and economic uncertainty.

But two decades on, I’m watching that British dream turn into a bit of a nightmare for many SA expats in London and beyond.

The reality check hitting UK-based South Africans

The numbers don’t lie.

UK inflation hit double digits recently, the pound has weakened significantly against major currencies, and the tax burden keeps climbing.

That salary that looked so impressive in rands?

After tax, National Insurance, council tax, and eye-watering rental costs, it doesn’t stretch nearly as far as you’d imagined back in Cape Town.

The UK cost of living crisis isn’t just a headline, it’s hitting expat wallets hard.

A pint costs £8 (R190) in most London pubs. A decent flat in London requires a six-figure salary just to live comfortably. Energy bills have soared. And that’s before you’ve sent money home to family or tried to save for a deposit on a property you’ll probably never afford.

How Brexit devalued the British passport for South Africans

Remember when acquiring British citizenship was the ultimate goal?

That powerful passport that once offered freedom of movement across Europe?

Brexit changed everything. 

British citizens lost the right to live and work freely across EU member states, now limited to stays of just 90 days in any 180-day period.

The UK passport has slipped from top global rankings to 7th or 8th place.

For South Africans who gained British citizenship specifically for European access, that investment has significantly depreciated.

Rachel Reeves and the UK tax squeeze

If you thought things couldn’t get worse, Chancellor Rachel Reeves is preparing another budget that has workers and businesses bracing for impact.

After increasing taxes by £40 billion last year, she’s now hinting at breaking Labour’s election pledge not to raise income tax, National Insurance, or VAT.

The most likely move is freezing income tax thresholds, a stealth tax that drags more workers into higher tax bands as wages rise with inflation.

You might get a pay rise, but you’ll take home less because more of it gets taxed at a higher rate.

For South Africans who relocated to the UK for better financial prospects, watching your disposable income shrink whilst your tax bill grows is hardly the promise that was sold.

There’s also talk of further increases to employer National Insurance, which businesses will inevitably pass on through slower pay rises, reduced bonuses, or higher prices.

The anti-business sentiment that’s creeping into UK policy is particularly galling for entrepreneurial South Africans who came here expecting a pro-business environment.

Why South Africa is becoming more attractive than the UK

Here’s where it gets interesting.

Yes, South Africa still grapples with its challenges. Crime statistics remain concerning, and economic growth is sluggish. But these were always the reasons South Africans left. What’s changed is that the UK’s advantages have eroded dramatically.

The weather’s still grey. The cost of living is astronomical. You’re still far from family, missing braais. But now you’re also watching your disposable income shrink, your tax bill grow, and Britain’s global influence diminish.

Meanwhile, South Africa has seen improvements in electricity supply. The rand economy means your UK earnings stretch further if you work remotely from SA for UK companies.

Cape Town’s lifestyle, when you’re earning pounds, suddenly looks rather appealing again. You can afford domestic help, eat out regularly, and actually buy property. Try doing that in London on anything less than £100 000 (R2.4 million) a year.

Are South African expats returning home in record numbers?

Are more South African expats heading home?

Anecdotal evidence suggests the tide may be turning. Cape Town’s property market is seeing increased interest from returning expats.

Remote work has made it possible to earn pounds whilst living in a rand economy, giving you the best of both worlds without the British winter, the tax squeeze, or the M25 commute.

There’s also the subtle but significant factor of feeling welcome.

Britain’s increasingly inward-looking politics and rising anti-immigrant sentiment, even towards skilled workers, has left many South Africans questioning whether they’ll ever truly belong here.

When you’re paying through the nose in taxes and still being made to feel like an outsider, relocating back to South Africa starts looking more attractive.

Should South African expats stay in the UK or return home?

The UK hasn’t become unliveable, but it’s lost that clear advantage it once had.

When you’re working harder, earning less in real terms, paying more tax, and watching Britain slide from its position on the world stage, you have to ask yourself a tough question.

Is it worth it anymore?

For a growing number of South African expats, the answer is becoming increasingly clear. When the grass isn’t greener anymore, maybe it’s time to reconsider which side of the fence you want to be on.

And for many, that side might just be the one with better weather, lower living costs, and the sound of Afrikaans at the local Pick n Pay.

Frequently Asked Questions

How many South Africans live in the UK? 

The 2021 UK Census recorded 217 180 South African-born residents in England and Wales, with various estimates now placing the figure between 240 000 and 300 000. However, I believe this is grossly underestimated. These official figures don’t capture those who’ve acquired British citizenship, second-generation South Africans, or those living informally in the UK. The real number is likely far higher, with significant communities concentrated in London, particularly in Putney, Wimbledon, and surrounding areas. Many arrived during the 2000s and 2010s seeking stability and opportunity.

What are the tax rates for UK residents in 2025? UK residents pay income tax starting at 20% on earnings above £12 570 (R299 000), rising to 40% above £50 270 (R1.2 million), and 45% above £125 140 (R3 million). National Insurance adds another 8-12% on top. With frozen thresholds and potential further increases, the tax burden for expats continues to climb.

Can South Africans work remotely from SA for UK companies? Yes, many South Africans are now working remotely from South Africa for UK employers, earning pounds whilst living in the rand economy. This arrangement offers significant financial advantages, though tax implications need careful consideration with both SARS and HMRC.

Is the UK passport still valuable after Brexit? The UK passport remains strong for global travel but has lost significant value for South Africans specifically. Post-Brexit, British citizens can no longer live and work freely in EU countries, limiting stays to 90 days in any 180-day period. The passport has dropped from top global rankings to 7th or 8th place.

What is the cost of living comparison between UK and South Africa? London’s cost of living is significantly higher than Cape Town. A pint costs £8 (R190) in London versus £1.70-£2.50 (R40-60) in South Africa. Property costs are dramatically lower in South Africa, and earning pounds whilst living in the rand economy can provide a far higher standard of living than remaining in the UK.