Relocation pushes up house prices

House price rises in areas with the highest net internal migration were much higher… The 101% rise in house prices in the 20 local areas that saw the biggest rise in net internal migration in England and Wales between 2000 and 2010 was significantly higher than the 79% increase in the average house price in the 20 areas that were the biggest net losers from internal migration over the period. Overall, house prices have risen by an average of 96% across all the LADs surveyed.

What’s more, house prices in the 20 locations with the highest level of net internal migration since 2000 fell by 16% during the downturn in the housing market between 2007 and 2009. This is smaller than the 19% drop in house prices among the 20 areas that saw the largest declines in net internal migration.

East Riding gets the biggest lift from net internal migration and a 127% house price rise At a local level, the population of East Riding on the Yorkshire coast received the biggest lift from net internal migration in England and Wales between 2000 and 2010. Overall, 33,700 more people moved to the East Riding from elsewhere in England and Wales than left the area to live elsewhere in the country, equivalent to a tenth of the area’s total population in 2010. House prices here rose by 127% (£82,856) over the same period, well above the national increase of 96%.

Three-quarters of the areas with the biggest increases in net internal migration are coastal. Fifteen of the 20 local authority districts in England and Wales with the highest levels of net internal migration between 2000 and 2010 are coastal areas such as East Riding. In contrast, 18 of the 20 LADs that saw the largest net fall in internal migration are in major cities, including Birmingham and Leicester. Significantly, 14 of the 20 areas that saw the largest fall in internal migration are London districts.

Thirteen of the 20 LADs with the highest number of internal migrants also feature among the 20 LADs with the largest number of people moving to other parts of England and Wales. These include many locations within the largest cities in England and Wales, including Birmingham, London,  Manchester and Leeds. Birmingham recorded both the highest internal inflow (383,900) and the highest outflow of people (472,700) of any local authority district in England and Wales since 2000.

The rate of home ownership is typically higher in the areas that have seen the biggest net gains from internal migration over the past decade. Halifax estimates that the average rate of owner occupancy in the 20 local authority areas that received the biggest lift from net internal migration since 2000 is 76%.

This is significantly higher than the average of 52% across the 20 biggest net losers from internal migration, which includes a number of areas within major cities such as London and Birmingham. These figures highlight the transient nature of the population, as well as housing affordability issues, in many of our major cities.

East Riding of Yorkshire, which recorded the biggest lift from net internal migration in England and Wales, has an owner occupancy rate of 80%, almost double the owner occupancy rate in Newham (41%), the biggest net loser from internal migration in the past decade.

Suren Thiru, housing economist at Halifax, said: "The substantial population shifts across England and Wales appear to have had a marked impact on the housing market over the past decade. House price growth has generally been stronger in the areas that have proved to be the most popular locations for people to move to from elsewhere in the country, reflecting the importance of population changes as a key driver of housing demand. The figures also highlight the transient nature of the population in many of our major urban conurbations with the levels of home ownership much lower in the main cities compared to other parts of the country."

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