The next generation of homebuyers in the UK could spend up to 10 times the average salary to get on to the property ladder as house prices soar, according to a new study
Research by online estate agent HouseSimple.com has found that property prices in England grew 3.3 times faster than salaries between 1997 and 2017.
If house prices and salaries were to continue to rise at the same rates, the average house price in England could grow to £1.5m by 2042, almost 10 times higher than predicted salaries.
Alex Gosling from HouseSimple.com commented: “House prices won’t rise as sharply in 2018 as they have in previous years, but for many hopeful homebuyers, the prospect of saving enough money for a deposit is still a distant dream.”
The average UK house price currently stands at £223,000, while in London it is £419,000.
Presently, homebuyers require 7.9 times the average salary (£27,195) to buy a property.
By 2030, average UK house prices could soar almost three-fold to £600,000, while in London house prices could potentially reach £1.3m.
Gosling added: “If house prices keep rising at the rate we’ve seen over the past few decades – and salaries can’t equate – it will become extremely difficult for future generations to acquire property even with the financial help of their parents.”
