The extra demand for housing that migration and immigration cause, explain much of the regional difference in house prices around the country, according to the latest research by propertyfinder.com.

Regions with the highest inward migration have witnessed the steepest house price increases. In the last ten years, London has seen a population growth of 8% and a 216% growth in house prices, which is well above the UK average of 5% and 191% respectively.

Warren Bright, chief executive officer of Propertyfinder.com said: “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.”

Local government figures also show that household formation is on the up due to the rise in the number of single person dwellings. As a result, demand for housing will continue to be further ahead of supply.