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Possibly because you haven't got GPS switched-on and it's working it out from your WiFi IP address. AND your ISP haven't registered your change of address with whoever keeps the location information for IP addresses.
Bit of a long-shot, though.
Spooky !!! Is it near where you are now? If it is and GPS is turned off it could because you are located by Gprs signal which is only accrate to about 200mtrs
A number of companies, such as Google, collect the MAC addresses of any WIFI access points whilst surveying an area. This is all stored in databases and used for stuff like Google Maps. They also have the geographical locations for things like cell towers. All that sort of data is used for the "coarse" location services that don't rely on GPS
Well, Google used to, until they got found out for "accidentally" collecting users data from unsecured WIFI networks when doing Streetview surveys.
As far as I know, no. I assume you kept your WIFI router? If so it's probably that devices unique MAC address that's being looked up. The MAC address is unique to every single network device ever made (unless you fudge it), so WIFI routers, network adapters all have their own. I would imagine that your phone, in conjunction with Googles location services are looking up the MAC address in a database and seeing the old location.as i said when i moved house i changed isp's but i kept the same phone number, will this have something to do with it??

Happy to be of assistance.