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.