UK house prices are expected to rise by 30% over the next ten years
UK house prices are expected to rise by 30% over the next ten years, pushing the age of first-time buyers back by nearly two years.
New research by comparethemarket.com reveals the average age of first-time buyers is expected to reach 37 in London, and almost 35 for the rest of England by 2031 as house prices increase.
Over the next decade, the average price of a home will reach £323,718, a jump of 30%, and increase by 33% in Greater London to £619,568.
Analysis of ONS data from 1992 to 2020, alongside a forecasting model, predicts house prices will increase as follows:
By 2031 it is anticipated that house prices across Greater London will rise by a third, while the rest of the UK is expected to see a slightly lower increase of 30%.
Going beyond 2030, the UK property market is set to see incremental increases in the price of homes until 2040.
comparethemarket.com also analysed the age of first-time buyers in England going back to 2006, to reveal how this will increase over the next ten years:
|Rest of England||33.1||33.2||33.4||33.6||33.7||33.9||34.1||34.2||34.4||34.6||34.7|
The average age of a first-time buyer currently stands at 35 years-old, while in ten years, buyers will on average have to wait an extra two years to make the purchase.
Commenting on the findings, Chris King, head of home insurance at comparethemarket.com, says: “Despite house prices seeing an all-time high and the average age of first-time buyers set to increase over the next ten years, it’s interesting to see that buying habits have remained similar.”
For those who are yet to buy but are planning on doing so in the future, it’s important that you take out the correct insurance policies, ensuring that both your home and contents are covered ready for when you move in, should the worst happen.”