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The investment needed for first-time buyers to get their foot on the property ladder is due to soar over the next 34 years.
This means that first time buyers born today could be paying £1.2 million for a foot on the ladder – £4.5 million in London.
New research by letting and sales agents, Benham and Reeves, looked at the historic first-time buyer property price data from the Land Registry and how this had changed month to month across each UK region and London borough, before projecting these monthly price changes forward 34 years to see what the average first-time buyer house price could hit for those born today.
With the average first-time buyer now 34 years of age and today’s average first time buyer house price in England at £207,526, those born today could be looking at an average of £1,214,381 to get on the ladder in 34 years’ time.
However, this figure will be much higher in the capital and despite the current market slowdown, the average first-time buyer house price in London is now £412,679, although this could increase to a huge £4.5 million over the next 34 years.
The East of England and South East are also expected to soar in price, both hitting £1.9 million by 2052.
Benham and Reeves Director, Marc von Grundherr, commented: ‘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.’
He continued: ‘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.’