Population shift: Our friends from the North boost property prices down South

The influx of people to the economically successful south-east of England, and the boost this gives to average house prices in the region, has been underlined by new research from the Halifax.

The bank, the UK's biggest mortgage lender, has calculated that around 2.5 million people moved to the South-east from other parts of the country between 1996 and 2006. Even taking into account those leaving to live elsewhere, the region experienced a net inflow of nearly 400,000 people over the decade, not including the thousands who settle there each year from abroad.

Likewise, the south-west of England saw large numbers of people from other parts of the UK moving in as its economic prospects and employment rates picked up. As the Halifax research shows, demographic changes are inevitably reflected in house prices.

"The South-east and South-west have been the most popular destinations for people to move to," said Martin Ellis, chief economist at the Halifax. "The high level of migration has contributed to the rapid rise in house prices [in these parts of the country]."

The north-east of England, where traditional industries have declined or in some cases disappeared over the past 20 years, is the only part of the UK to have seen its population fall since 1996.