Spiralling property prices in the South East are failing to deter homebuyers, with the region being the favoured destination for 17% of prospective homebuyers who plan to move in the next two years, according to the latest findings from Alliance & Leicester's quarterly movingimproving index.

With almost one in five prospective homebuyers (19%) in London looking to move elsewhere in the South East over the next two years, the latest findings fuel concerns that house hunters in the South East are being priced out of the housing market by their London counterparts.

The latest movingimproving index also found that emigration may be on the rise with one in 20 homebuyers (5%) looking abroad to make their house purchase. This figure is up from 2% in January 2002.

A sunny overseas retirement may be on the cards for those in their twilight years with 13% of prospective homebuyers in their fifties looking to buy abroad in the next two years. This figure has more than doubled from 6% in January 2002. The latest survey asked a GB representative sample of 4,000 people within which region they are intending to buy a property and how far they are looking from their current location.

Key findings include:

• 50% of all homebuyers looking to leave London are looking to buy elsewhere in the South East.
• Londoners are most likely to be looking to buy in other areas with 38% of prospective homebuyers from London searching outside this region.
• Men are far more likely than women to be looking to purchase a home in the South East (20% v 13%) and in London (15% v 10%). The North West appeals more to women than men (14% v 8%).
• The South West peaked in popularity during the autumn months of 2001 (10%), this fell to 7% during the winter but has now recovered slightly to 8%.
• Scotland has witnessed an increase in popularity with 9% of prospective homebuyers planning to move to Scotland - up from 6% in January 2002.
• The North is the region expected to attract the least number of homebuyers over the next two years (4%), with Wales also failing to appeal greatly to UK homebuyers (5%).
• The most loyal to their region are prospective homebuyers from Yorkshire and Humberside with only 3% looking to leave the region.
• Prospective homebuyers in the South West are also less likely than people in other areas to be leaving their region (9%).