Average house prices could hit £1m by 2037

Average house prices in England could reach £301,867 in the next decade and hit almost £1m in 20 years if values keep rising at the same rate, an agent has claimed.

However, in one region, the north-east, homes could actually be worth less in 2027 than they are now.

Online agent eMoov has crunched Land Registry data to assess how much it would cost future generations to get on the property ladder if prices generally keep increasing at the same rate over the next ten and 20 years.

If prices rise by 29%, as they have since 2007, the data claims they will reach £301,864, and in London will hit £866,719 on average.

However, the north-east, which has actually seen values drop 4% in the past decade, would see values go from £126,989 to £121,699 over the next ten years using the same formula.

The research found that by 2037, based on house prices rising 320% in the past 20 years, three regions could tip well over the £1m mark, with the average house price across England falling just short at £983,826.

In London, if the market continues to inflate, the average property cost would climb by a further 480%, putting the average house price at an eye-watering £2,792,783.

The south-east could climb to £1,422,708 over two decades if prices increased by another 354%, trailed by the east of England where the average house price would hit £1,311,380 after climbing 371%.

Of course, with Brexit negotiations afoot and plenty of changes still to come in the buy-to-let market, there are plenty of upcoming pressures on prices.

Russell Quirk, chief executive of eMoov, said: “Despite the usual industry speculation, it’s not likely that we’ll see a bursting of the house price bubble any time soon, but perhaps a slight deflation temporarily.

“Should this be the case, this research highlights the near impossible task faced by the next generation of aspirational buyers and acts as a warning to the government should they fail to address the current lack of property available, which is seeing prices once again reach dangerously inflated levels.

“The property boom in several regions of England has made it increasingly more expensive to get on the ladder, and the figures anticipating the next two decades only further attest to the importance of investing in a home as soon as possible if the trend in increasing property values is to persist.

“It is stomach churning to think that should prices continue the way they are, there will be just one real area of property affordability left across England and Wales in 20 years’ time, with the average house price in England approaching the £1m mark and three regions tipping beyond this.”

How does your region fare?

Region Average House Price (2007) Average House Price (2017) % Change (Last 10 Years) Average House Price (2027)
London £267,658 £481,648 80% £866,719
South East £220,546 £313,334 42% £445,159
East of England £194,994 £278,349 43% £397,335
South West £197,597 £239,371 21% £289,976
East Midlands £151,360 £176,524 17% £205,870
West Midlands £144,775 £163,162 13% £183,883
North West £142,760 £150,249 5% £158,131
Wales £139,760 £146,742 5% £154,072
North East £132,508 £126,989 -4% £121,699
England £181,824 £234,278 29% £301,864

 

Region Average House Price (1997) Average House Price (2017) % Change (Last 20 Years) Average House Price (2037)
London £83,066 £481,648 480% £2,792,783
South East £69,008 £313,334 354% £1,422,708
East of England £59,081 £278,349 371% £1,311,380
South West £57,751 £239,371 314% £992,157
East Midlands £46,775 £176,524 277% £666,178
West Midlands £47,536 £163,162 243% £560,038
North West £42,353 £150,249 255% £533,010
Wales £43,525 £146,742 237% £494,731
North East £42,353 £126,989 200% £380,753
England £55,789 £234,278 320% £983,826


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Written by: Houseladder