Record population rise for Square Mile

It is Britain's smallest local authority, but the Square Mile that is the City of London has broken all records for population growth.

The trend towards converting older office blocks into flats and the general increase in housing densities in central London, have resulted in the City's population rising by 51 per cent since 1994, research reveals today.

Overall, the population of Greater London grew by 543,400 in the past decade, or 7.9 per cent, well over twice the national rate of 3.2 per cent, reflecting its economic prosperity.

The City's population is 7,185, up from about 4,500 a decade ago. At the same time the population of Westminster grew by 45,100, but as far more people have always lived there it amounts to a 26 per cent increase.

The population of Kensington and Chelsea increased by 23 per cent. In Tower Hamlets there are now 22 per cent more residents than in 1993, and 18 per cent more live in Camden.

Outside London, East Cambridgeshire has seen the biggest population increase, with a 27 per cent growth in the past decade. In Milton Keynes, where Deputy Prime Minister John Prescott is proposing significant expansion, the population has grown by 31,800.

The research was carried out by Halifax, which found a clear relationship between population growth and house prices.

In the 10 areas with the fastest growing populations, house prices have increased by an average 238 per cent since 1993, compared with a 195 per cent increase in national house prices.

At the other end of the scale, in the 10 areas with the largest falls in population - all in Scotland and the North - house prices went up only 123 per cent. The biggest decline in population has been in Glasgow, which lost 39,600 residents. Liverpool lost 29,500 and Mr Prescott's own constituency of Hull lost 17,100.

Halifax economist Tim Crawford said: "London has seen the fastest population growth over the past 10 years, reflecting the capital's ongoing economic prosperity.

"Major cities in northern Britain such as Glasgow, Liverpool, Newcastle and Hull have recorded population declines, highlighting the ongoing north-south divide."

The City is not, however, keen to expand its residential population.

A Corporation spokesman said: "The big population increase in the City has been from a small base, as we don't have much room for homes. Our residents are important to us, but there is limited potential growth in their numbers as our main aim is to increase our business sector."

Westminster council deputy leader Kit Malthouse said: " Independent surveys consistently show 80 per cent levels of satisfaction with Westminster as a place to live."