UK house prices will be 50% higher by 2025, report says
UK house prices are forecast to increase in value by at least 50% over the next decade, according to a recent study by the Centre for Economics and Business Research for the National Association of Estate Agents (NAEA) and the Association of Residential Letting Agents.
The researchers expect that by 2025 the typical house price in Britain will cost approximately £139,000 more than the current average price of £280,000.
The biggest gains are expected in the UK capital.
The average price of a house in London is forecast to cost £931,000 in ten years time, up from around £515,000 at the moment.
The average property price in the South East and East of England over the next decade is forecast to increase to £646,086 and £574,374 (respectively).
Mark Hayward, managing director of the NAEA, said: “House prices are only going to go one way, and unfortunately that is up. For so many already priced out of the market, this is news aspiring house buyers will not want to hear.
“Ongoing house price inflation, combined with low wage inflation, tighter lending restrictions and a shortage of affordable housing, means owning a home will continue to be a distant dream for many.
“Increased rental costs will also make it more difficult for current renters to save for a house deposit; as much of their income will be eaten up in rent.”
The average cost or rent is forecast to increase 27% up to £171 per week by 2025 from the current UK average of £134.
A Department for Communities and Local Government (DCLG) spokesman said: “The Government recently announced the biggest, boldest and most ambitious plan for housing in a generation with a doubling of the housing budget.
“The number of new homes is already up 25% in the last year and we are working closely with housebuilders to ensure they have the skills needed to get homes built.”