London house prices to almost double in 10 years.
A study compiled by the Centre for Economics and Business Research for the National Association of Estate Agents (NAEA) and the Association of Residential Letting Agents, forecasts an average property price in London is set to almost double in ten years.
As housing supply shortages continue it will only add to the upward pressure on prices, an average house in London priced at £515,000 now could well cost £931,000 by 2025, outside of London rises are predicted to be lower at just 50%, a typical house price would be around £139,000 higher than the current average of £280,000 in ten years.
Average house prices across the South East and the East of England are also expected to be well over the half-million pound mark by 2025, at £646,086 and £574,374 respectively.
Mark Hayward, managing director of the NAEA, said: “House prices are only going to go one way, and unfortunately that is up. For so many already priced out of the market, this is news aspiring house buyers will not want to hear.
“Ongoing house price inflation, combined with low wage inflation, tighter lending restrictions and a shortage of affordable housing, means owning a home will continue to be a distant dream for many.
“Increased rental costs will also make it more difficult for current renters to save for a house deposit; as much of their income will be eaten up in rent.”
The report also expects rents to surge by 27%, from the current UK average of £134 per week to £171 by 2025.