The average house price in the UK is now at an all-time high of £248,496, according to Nationwide’s latest house price index. After the slight decline in July, house prices increased by 11%.
What is in store for house prices in the next decade? The new data predicts house prices could surge by as much as 30% by 2031, meaning the average house price in the UK could reach £323,718.
New research from comparethemarket.com, which analysed ONS data from 1992 to 2020 combined with a forecasting model, has found that by 2031, house prices in Greater London could be £619,568 in 2031, compared to £465,549 today.
The research found that the current average age of a first-time buyer in London is 35, expected to increase to 37 by 2031.
Comparethemarket.com also polled homeowners who purchased a property in the last 10 years:
- Just under half of homeowners bought their property with their partner, with half saying they would do the same if they were to move again.
- Almost a quarter said they would spend more if they would do anything different when buying their first home now
- One in five said they would buy a bigger home first
- Interestingly, 20 percent wouldn’t change anything about their home.
- The size of the house (63%), the location (58%) and how expensive it is (31%) were voted as the most important considerations by those who bought recently or are planning to soon.
Commenting on the findings, Chris King, head of home insurance at comparethemarket.com, said it’s interesting to see how buying habits have remained almost the same.
He said: “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.”
Despite the tapering of the stamp duty holiday research predicts that house prices are likely to continue increasing until 2040.