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Research Suggests Average House Price Will Be £500k in 30 Years

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    Average UK Property Price Set to Hit Half a Million in 3 Decades

    A study from Lomond suggests that if house prices continue on their current trajectory, the average house price could be as much as £503,000 in just three decades.

    Through this study, the estate and letting agency group set out to reveal how much money a baby born today would need to get a foot on the housing ladder as an adult.

    The results show that the average price of a UK property is set to skyrocket over the next 30 years based on historical data about the market.

    Learn More: Take a look at our guide to buy-to-let to learn more about the UK property market. Our latest insights cover topics like buy-to-let properties for sale in London.

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      What Figures Did the Study Predict?

      At the moment, the average age of a first-time buyer in the UK is 31, and looking at historical trends for the property market, by the time a child born today reaches this age, the average price of a UK property will have surpassed half a million.

      Looking at data from Halifax Bank and the UK House Price Index, Lomond came up with a projected snapshot of the future in this new study. For comparison, the average house price in the UK in January 2024 was £281,913, according to the UK House Price Index.

      By 2055, the average price of a first home is forecast to be £503,584, according to Lomond’s research, showing growth of 111.9%. This means that a first-time buyer at this time will require an annual salary of about £95,000 to get onto the property ladder, and eye-watering savings of over £50,000 will be required for a 10% deposit on a home.

      These price hikes will be considered good news for investors in property and those hoping to start investing in real estate in the near future, but these figures suggest there will be even bigger affordability issues for young people in the future.

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      What Does This Say About the UK Property Market?

      This research makes it clear why the UK property market is globally renowned for its stability and is considered one of the safest investments, but it does raise questions about future affordability issues for first-time buyers.

      Ed Phillips, CEO of Lomond, commented: “It seems quite unbelievable that a baby born today could face paying half a million pounds for their first home, but you would probably have thought the same thirty-odd years ago had someone told you the price of property today.

      “What it certainly highlights is that Britain is home to one of the most robust and desirable property markets on the global stage, and investing in property is almost always going to be a safe bet.

      “We do, however need to see the issue of supply and the insufficient level of new homes being delivered addressed, if our children are to ever have a chance of realising their own ambitions of homeownership.”

      To learn more about the UK property market, read our dedicated buy-to-let area guides, looking at topics such as investment property available in Darlington and buy-to-let property in Wrexham.

      Research Suggests Average House Price Will Be 500k in 30 Years

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      Jessica Ferris

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      Jessica Ferris is a property writer at RWinvest, helping our readers stay ahead of property market trends with the latest news and statistics.