Homeowners in the most popular locations to move to in England and Wales have seen the value of their property double over a decade, according to new research by Halifax.
The average house price in the 20 local authority districts (LADs) that received the biggest lift from net internal migration (immigration less emigration to and from other England and Wales LADs) in England and Wales between 2000 and 20101 rose by 101% from £94,548 in 2000 to £189,641 in 2010 – equivalent to a weekly increase of £183.
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.
Halifax also found that 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.
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%.
15 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. 14 of the 20 areas that saw the largest fall in internal migration are London districts.
Halifax’s review covers 348 Local Authority District (LAD) areas between 2000 and 2010. The Review uses local migration estimates from the Office for National Statistics (ONS). Net internal migration equals immigration less emigration to and from other LADs in England and Wales. These figures do not allow for the impact of international migration or natural population change (i.e. births and deaths). House price data has been extracted from the Halifax’s own extensive house price database.
13 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