First-time buyers in Britain are currently paying £193,194 on average, but this could increase by 150% over the next three decades, an analysis has shown, revealing the scale of the homebuilding crisis in the UK.
The research, from WinMyDreamHome.com, predicts the cost that a baby born today could face when they buy their first home in 30 years’ time.
WMDH explored the average first-time buyer (FTB) house price and investigated how this has historically changed. Then researchers forecasted house price growth based on the interpolation of 30 years’ historical data.
Based on these historical averages, they predicted that first-time buyers will pay an average of £482,741 over the next three decades.
London would remain the most expensive region in Britain. Currently, the average FTB price in the English capital is £410,084 but this could rise to almost £1.5m in 2049, an increase of 259%.
Marc Gershon of Winmydreamhome.com said of the findings: “The tough task facing current home buyers is well documented but for those born today, the task of getting on the ladder could be nigh on impossible.
“A scary prospect but one that could materialise if we fail to address the lack of affordable housing being delivered, the attack on buy-to-let landlords restricting rental stock and the failure of wages to keep pace with property prices.”
The Rise of Self Build
Earlier this month, housing minister Esther McVey addressed the escalating housing prices in the UK, saying they “cannot be right”. McVey referred to house prices in some parts of the country rising to between eight and 44 times average local earnings since the 1990s.
She then reiterated the government’s support for Right to Build as a means of improving housing in the UK.
The Right to Build scheme encourages more people in the UK to build their own home. A total of 18,000 people signed up to the self build and custom build registers between 1 April – 30 October 2016, during the first partial year of the legislation.
Self builders and custom builders can sign up to their nearest council register at www.righttobuildportal.org.