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New research has shown that UK property prices could soar so much it will make the task of becoming a first-time buyer very difficult in the future.
Should UK property prices carry on rising as in the recent past, the buy to let rental sector could become more and more important as people struggle to get on the property ladder.
With the average first-time buyer now 30 years old, research by Winmydreamhome.com (WMDH), looked at the current average first-time buyer house price and how this has changed historically, before forecasting house price growth based on the interpolation of historic data over the next 30 years.
With current UK property prices, first-time buyers across Britain are paying £193,194 on average to get on the ladder but this could climb to £482,741 over the next three decades based on historical trends – an increase of 150 per cent.
This increase would be highest across England, climbing 160 per cent from an average cost of £206,018 today to £535,340 in 2049. The average FTB could be paying £278,468 to get on the Welsh ladder in 30 years, a 100 per cent increase, while Scotland would be the most ‘affordable’, up 67 per cent to £203,760 from £122,148.
Despite a current period of problematic growth in UK property prices due to Brexit, London would remain the most unaffordable region of Britain by some way. The average FTB in London currently pays £410,084 to get a foot on the ladder but should prices maintain their growth based on historical trends, this cost could spiral to almost £1.5m by 2049 – an increase of 259 per cent.
The South East would see FTBs pay a hefty £731,631 in 2049, joined in the £700k club by the East of England (£728,874). The South West would be home to an average FTB cost of just over half a million pounds, while the East and West Midlands would hit £405,945 and £397,741 respectively.
The North West, Yorkshire and the Humber and the North East would be the most affordable but would still see FTBs paying between £160k-£291k for their first home.
Marc Gershon of Winmydreamhome.com, commented: ‘A scary prospect but one that could materialise if we fail to address the lack of affordable housing being delivered, the attack on buy to let landlords restricting rental stock and the failure of wages to keep pace with property prices.
‘The tough task facing current home buyers is well documented but for those born today, the task of getting on the ladder could be nigh on impossible.