Homeowners take flight to suburbs

Investment property news: MONEYEXTRA.COM

New research from Halifax Financial Services has shown that almost 2.3 million Londoners moved away from the capital over the last 10 years and headed mainly for the suburbs, the South East and the West Country.

In London there was a net population loss due to inter-regional migration of 670,000 people (9% of London's population) between 1994 & 2003, with the pace of population loss rising. From 1994 -1998, population loss was only 230,000. Five years later, that figure nearly doubled to 440,000.

Other regions which recorded net population loss due to inter-regional migration were: West Midlands, North West, North East, Northern Ireland and Yorkshire & the Humber. The effects are even more marked over 20 years. In 1983, 190,000 people left London. By 2003, 262,000 people were leaving London, a 38% rise.

The South East had the most arrivals with 2.25 million people moving into the region. It was also the most popular destination for people migrating from London, with 875,000 people arriving there over the last 10 years.

The region also proved the most popular destination for people from the South West and Scotland, while it was the second most popular destination for people migrating from East Midlands, East of England, the North East & the North West.

On the other hand, the South West was the most popular destination for people to migrate to from the West Midlands and Wales and the second most popular destination for people moving from the South East. It also had the largest net population gain due to inter-regional migration with an increase in population of 300,000. Indeed, the pace of population gain has been rising. Between 1994 & 1998, the gain was 135,000, whereas five years later this had risen to 160,000.

Other regions with net gains were the East of England, South East, East Midlands, Wales & Scotland. Although Yorkshire had a net population loss of 31,000 due to inter-regional migration between 1994-1998; five years later the picture was totally different as the region enjoyed a net gain of 11,000 people over the 10 year period and it is now the most popular destination for people moving from the North East, North West and East Midlands.

The majority of people moving into London were in the age group 16 - 24 whereas the majority of people leaving the capital were aged 25-44. The consequence of this meant that flats in London - traditional accommodation for young people - increased by 236% over the last 10 years, while semi detached properties only increased by 218% over the same time.

As a result of such an inflow of population to the regions in the South of England, house prices rose by 164% in the South East and by 160% in the South West.

- 6 June 2005