The presence of three more Herbig Ae/Be (HAeBe) stars in the Cepheus Flare within a 1.5$^{circ}$ radius centered on HD 200775 suggests that star formation is prevalent in a wider region of the LDN 1147/1158, LDN 1172/1174, and LDN 1177 clouds. A number of young stellar objects (YSOs) are also found to be located toward these clouds. Various star formation studies indicate ongoing low-mass star formation inside this region. Sources associated with less near-infrared (IR) excess and less H-alpha emission raise the possibility that more low-mass YSOs, which were not identified in previous studies, are present in this region. The aim is to conduct a search for additional young sources that are kinematically associated with the known YSOs and to characterize their properties. Based on the Gaia DR2 distances and proper motions, we found that BD+68 1118, HD 200775, and PV Cep are spatially and kinematically associated with known YSOs. Using the Gaia DR2 data, we identified 39 co-moving sources around BD+68 1118. These sources are characterized using optical and near-IR color-color and color-magnitude diagrams. We estimated a distance of 340+/-7 pc to the whole association that contains BD+68 1118, HD 200775, and PV Cep. Based on the distance and proper motions of all the known YSOs, a total of 74 additional co-moving sources are found, of which 39 form a loose association surrounding BD+68 1118. These sources are predominantly M-type with ages of $sim$10 Myr and no or very little near-IR excess emission. The positive expansion coefficients obtained via the projected internal motions of the sources surrounding BD+68 1118 and HD 200775 show that these sources are expanding with respect to their HAeBe stars. A spatio-temporal gradient of these sources toward the center of the Cepheus Flare Shell supports the concept of star formation triggered by external impacts.
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