House price predictions have shown that the average house price could increase by 84% over the next 14 years making property in England worth £457,433, £307,712 in Wales and £297,222 in Scotland. These predictions released by eMove are based on market growth between 2000 and 2015 in the UK.
If house prices to continue to grow at the current rate then the average house could cost as much as £543,297 in Essex and £757,357 in Hertfordshire by 2030. If prices do increase as much as predicted it could make property ownership even more out of reach for first time buyers in the future. Resolution Foundation’s research has shown that prices have risen by 36% since April 2011 whereas wages have only increased by 7% during the same time.
Lindsay Judge, Senior Policy Analyst at the Resolution Foundation, told the Daily Mail: 'Runaway house prices have had a clear feed through to living standards in recent years. Most obviously it has priced people out of home-ownership, pushing significant numbers into the private rental market.
'But rampant house prices inflation isn't just a problem for wannabe home-owners. It has increased the stock of mortgage debt, and fuelled demand for renting that is driving up costs there too. Ultimately we all pay for house price inflation by spending a greater share of our incomes on housing.'
If you are looking at buying your first-property then there has never been a better time to access cheap mortgages, so why not pop into your local branch of Intercounty for a coffee and a chat to discuss your options or give our team a call on 01279 655245.
Source: Daily Mail