Future buyers born in 2019 face paying over £1.2 million for their first home
People born today are set to have to pay £1.2 million for their first home in the UK at the age of 34, and £4.5 million if they live in London, new research has found.
The study from letting and sales agents, Benham and Reeves, looked at 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.
Researchers then projected these monthly price changes forward 34 years to see what the average first time buyer house price could pay at the age of 34, the average age for getting on the housing ladder.
The data shows the average first time house price would also top the £1million mark in the East of England and the South East of England, where the average house prices are currently £241,259 and £259,567 but could reach £1.9 million by 2052.
The cheapest area to buy for first time buyers born today is likely to be the North East of England with a predicted price of £210,739, up from £110,645 today.
The projection suggests that the most expensive place in London for first time buyers could be Waltham Forest with an average house price of £11.5 million by 2052, followed by Kensington at just under £8.4 million, with Hackney at £6.8 million, Westminster at £6.8 million and Haringey at £6.6 million.
Hounslow has seen the slowest rate of growth in first time buyer house prices historically and ranks as the most affordable for a future buyer born today, but even then it would still cost £2.8 million to get on the housing ladder in 34 years’ time.
‘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,’ said Benham and Reeves director, Marc von Grundherr.
‘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,’ he explained.
‘Not only does it show the huge jump in prices over previous years but how this could worsen further down the line. While we hope that prices won’t reach these heights, we’ve certainly seen stranger things happen across the UK property market in the last 34 years, so who knows what the next 34 may bring,’ he concluded.