Basle was still torn by religious dissensions, but the party of the Reformation now held the upper hand. A furious outbreak in 1529 led to the further destruction of religious paintings and sculpture. Even Holbein did not escape at least minor persecution for his religious principles. On June 18, 1530, he was, in conjunction with a number of his fellow-citizens, called upon to explain why he had not taken part in the communion service instituted by the Basle Church after the abolition of the Catholic creed in the previous year. He cautiously replied that before approaching the Lord’s Table he desired the signification of the holy mystery to be more clearly explained to him; and this seems to have been done, as he did not persist in his refusal. Beyond the Town Hall decorations he does not seem to have found much profitable work to do. He painted a portrait of his wife and two children (Basle Museum) and a new portrait of _Erasmus_ in 1530, the small round one now at Basle, the original source of a number of copies at Parma, Turin, and elsewhere. There was little opportunity, however, for him to follow his art with adequate success, and his thoughts naturally turned once more towards England. He came back to this country in 1532, probably without informing the Basle authorities of his intention. They sent a very flattering letter after him, offering him a fixed salary if he would return, but he does not appear to have taken any immediate notice of this suggestion.
During Holbein’s absence Sir Thomas More had become Lord Chancellor, but this office he relinquished in May, 1532, and was gradually falling out of favour with the King. Holbein did not take up his residence in Chelsea again, but settled in London, near the large colony of German and Netherlandish merchants then forming an important part of the commercial life of the capital. These merchants of the Hanseatic League formed a close corporation among themselves, and in their midst Holbein now made his home. Their place of meeting was called the Steelyard, and here their warehouses and residences were grouped round the hall of the guild, with its trim garden and special wineshop. Among them the artist found not only the language and habits of his own country, but also plenty of well-paid employment.