Within a generation the average house price being paid by first time buyers in the UK will have risen to £1.21 million, a leading London estate agent has predicted.
Benham & Reeves, which has 16 branches all over the capital, has completed its own house-price crystal ball gazing to see what children born today will be paying for a home in 34 years’ time, which is the age of the average first-time buyer at the moment.
The research found that the average house price in London by the year 2052 is likely to have reached £4.5 million and in the South and East of England, £1.9 million.
Wales and Scotland will remain relatively affordable. The average Welsh house will only cost £442,600 and for Scottish buyers it will have increased to £290,000.
“This research considers the ups and downs of the first-time buyer market historically and how things could play out for the generation of first-time buyers being born today if these trends were to repeat themselves,” says Marc von Grundherr of Benham & Reeves (left).
“It’s impossible to predict the future of the UK property market, particularly given the current turbulence caused by wider economic and political factors, however, this research acts as a warning of what could happen if we continue to fail in the delivery of affordable starter homes.
“While we hope that prices won’t reach these dizzying heights, we’ve certainly seen stranger things happen across the UK property market in the last 34 years, so who knows what the next 34 may bring.”