Are house prices going up? Mixed forecasts and the market impact
New figures released by Santander forecast a huge increase in property prices across the country by 2030, while income levels fail to grow comparatively, causing worries for buyers and sellers alike.
The average UK homeowner can expect to see the value of their property double in the next 15 years according to the mortgage provider, pushing the average house price to over half a million pounds for the first time. While London and the south east will see the greatest growth, the rest of the country is still expected to see a massive increase, with a 23% surge by 2020 alone.
The steady rise in prices will also increase the number of millionaire property owners, with the number of domestic properties worth over £1m expected to treble by 2030. While this is great news for some who currently own, it’s bad news for those still waiting to gather a deposit, as the margin between average income and inflation widens ever further. This could mean slim pickings for some sellers, too, with houses sitting on the market waiting for someone who can afford them.
Currently, the average UK home costs 7.9 times the average wage – but property buying experts expect this to rise to 9.7 in 15 years’ time – reaching a staggering 16.5 times the average wage in London.
“Property price inflation will tip many existing home owners into the million-pound price bracket,” said Miguel Sard, managing director of mortgages at Santander UK. “But it could also price some aspiring buyers out of the market, if they don’t have the right support.”
Possible consequences in the future could spell trouble for the property industry as a whole with the number of available UK buyers reduced significantly, and a greater valued difference between low-end and high-end property markets – creating an exclusive club with only a lucky few enjoying the benefits of upward social mobility.
Sadly, with higher prices and lower incomes, current homeowners are looking at spending much more time attempting to sell their houses – and if forced to lower their asking price to attract a sale, may end up losing any potential profit. Those looking for a quick sale however still have the option of selling to a property buying company who can pay cash for a home no matter what its circumstances.
If you’re worried about affording your next home if you don’t sell yours soon, ask National Homebuyers for advice, as we buy any house. Call 08000 443 911 or request a call back to find out how much you could get for your property.