Population movement linked to property price

Posted: 27 Feb 2007 10:29:18 GMT

The number of people choosing to move into an area and the cost of property are intimately linked, a survey for Propertyfinder has found

The number of people choosing to move into an area and the cost of property are intimately linked, a survey for Propertyfinder has found.

The website said that the relationship could provide a key indicator for predicting future growth potential.

The study found that there was a 73 per cent correlation between localised population growth and property prices, rising to 94 per cent when north-east England was excluded.

"The relative strength of regional housing markets is very clearly due in large part to population movement," said Warren Bright, chief executive of Propertyfinder.

"While these population trends continue, our research suggests that the best performing regions which have been attracting the most migrants will continue to see house prices outperform over the medium term."

London was the most popular region for people arriving from abroad, while the West Country, Wales and east-Midlands were the most popular areas for internal migration.

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