Go to Portugal.
Great weather with amazing beaches and country side, low cost of living and lot's of engineers that can speak fluent English. Also the government has subsidies for tech companies, specially in the IT sector.
Spain is ok as well, but I find that people there have a hard time with English and like to party a bit too much.
And the comments about London are true. It is very expensive to live here and the quality of life is appalling. Many people who start out in sexy industries ( games, web, etc... ) gravitate to finance because they can't afford to live an adult life here on the wages of those industries.