Average house price in England could hit £1.5m by 2042

The next generation of homebuyers in the UK may need to spend up to 10 times the average salary to get on to the property ladder, according to a new study.

Research by online estate agent 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 said: “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 now stands at £223,000, while in London it is £419,000.

At present, homebuyers require 7.9 times the average salary (£27,195) to buy a property.

By 2030, average UK house prices could jump almost three-fold to £600,000, while in London it could reach £1.3m.

Alex 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.”

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