A baby born today could be paying £483k for their first home, £1.5m in the capital

September 25, 2019

Research by Winmydreamhome.com (WMDH), the house competition run by London property developers Misuma, has looked at the potential cost of homeownership for a baby born today.

With the average first-time buyer aged 30 years old, WMDH looked at the current average first-time buyer house price and how this has changed historically, before forecasting house price growth based on the interpolation of historic data over the next 30 years.

Today across Britain, first-time buyers are paying £193,194 on average to get on the ladder but this could climb to £482,741 over the next three decades based on historical trends – an increase of 150%.

This increase would be highest across England, climbing 160% from an average cost of £206,018 today to £535,340 in 2049. The average FTB could be paying £278,468 to get on the Welsh ladder in 30 years, a 100% increase, while Scotland would be the most ‘affordable’, up 67% to £203,760 from £122,148.

Despite a current period of problematic price growth due to Brexit, London would remain the most unaffordable region of Britain by some way. The average FTB in London currently pays £410,084 to get a foot on the ladder but should prices maintain their growth based on historical trends, this cost could spiral to almost £1.5m by 2049 – an increase of 259%.

The South East would see FTBs pay a hefty £731,631 in 2049, joined in the £700k club by the East of England (£728,874). The South West would be home to an average FTB cost of just over half a million pounds, while the East and West Midlands would hit £405,945 and £397,741 respectively.

The North West, Yorkshire and the Humber and the North East would be the most affordable but would still see FTBs paying between £160k-£291k for their first home.

Marc Gershon of Winmydreamhome.com, commented:  

“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 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.

For many, competitions like win my dream home are a bit of fun in this day and age, fast forward 30 years and they could be the only realistic option for the majority when it comes to securing some bricks and mortar.”

Location
Current FTB house price (2019)
Future FTB house price (2049)
Change (%)
Great Britain
£193,194
£482,741
150%
England
£206,018
£535,340
160%
Wales
£139,436
£278,468
100%
Scotland
£122,148
£203,760
67%
London
£410,084
£1,473,551
259%
South East
£256,636
£731,631
185%
East of England
£241,704
£728,874
202%
South West
£210,212
£516,617
146%
East Midlands
£161,703
£405,945
151%
West Midlands
£164,642
£397,741
142%
North West
£137,461
£291,366
112%
Yorkshire and the Humber
£139,206
£287,914
107%
North East
£109,306
£164,592
51%
Future house price predicted using SPSS program based on historical FTB house price data and a projection period of 30 years.

Properganda PR

National and local media coverage for property businesses. Journo quotes delivered in minutes.

You May Also Enjoy

Breaking News

How to market to Estate Agents UK

The UK’s property sales and letting industry is quite sizable in both volume of work and those employed within. Some 25 million dwellings in England alone exist and there were estimated to be approximately 55,500 estate agents working in the United Kingdom as of the second quarter of 2024. Up and down the country, in…
Read More →
Letting Agent Talk

Preventative Measures to Reduce the Risk of Emergencies in a Rental Home

Ensuring that a rental home is safe and well-maintained is essential for both landlords and tenants. Emergencies in a rental property can lead to significant stress, financial loss, and potential damage. However, by implementing preventative measures, landlords and tenants alike can reduce the risk of emergencies and create a safer living environment. This guide provides…
Read More →
Estate Agent Talk

Understanding the Metrics Used by Estate Agents to Determine Your Home’s Worth

Determining the value of a property can sometimes feel like a complex process shrouded in mystery. However, understanding the various metrics and considerations that estate agents use to assess your home’s worth can demystify the process and empower you as a homeowner. This blog will provide a comprehensive guide to the key factors estate agents…
Read More →
Breaking News

Breaking Property News 15/11/24

Daily bite-sized proptech and property news in partnership with Proptech-X.   Digital transformation of real estate drives profitability Press Release – London 14th November 2024 – Following the October budget, estate agents across the UK are seeking new ways to adapt to an evolving property market. Rising costs and shifting buyer expectations have driven a need…
Read More →
Estate Agent Talk

Labour’s Vision for Homeowners and Renters: Key Changes to Expect

The UK housing market continues to be a complex and often challenging landscape for both homeowners and renters. Labour’s vision for housing reform aims to address longstanding issues in affordability, security, and sustainability, setting out a series of policy proposals that could reshape the property market. Whether you are a homeowner, a renter, or an…
Read More →
Letting Agent Talk

The pros and cons of renting to students: is it the right choice for you?

Student properties are no different in term of quality and facilities than any other type of private rental. And although landlords may have to spend a fair amount on setting up and properly maintaining student lets, they can also charge a good market rent. To help you decide whether letting to students might be worthwhile…
Read More →