The latest research by one of London’s largest independent letting and sales agents Benham and Reeves backs up Britons' growing worries about unsustainable house price growth with some pretty alarming evidence. Taking the current average age of a UK first-time house buyer – 34 years – the findings, based on Land Registry figures, predict typical house prices 34 years from now, provided the average rates of house price increases remain the same in the next three decades.
Still with us? The projected figures are alarming, to say the least. A Briton born today would be looking at forking out over £1 million anywhere in the South East, and potentially a quite crazy £4 million in London, if they buy their first home in 2052. In Wales, an average home may cost as much as £440,000 by the middle of the century (as opposed to an average of £109,000 now), and Scotland could see the average house price almost triple, up to £290,000 from the current £100,000.
Benham and Reeves Director, Marc von Grundherr, comments, '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.
'Of course, 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.
'Not only does it show the huge jump in prices over previous years but how this could worsen further down the line. 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.'
We're thinking it's worth dissuading our children from going into any other career than estate agency. Just think of the commission.
Thinking of buying your first home soon? Find out how to buy a house or flat in our expert guide.