There always seems to be new forecasts on how property prices will perform across each year, but new research has aimed to predict how much it will cost to own or rent 10 years from now.
Financial comparison site money.co.uk has analysed data from the Office for National Statistics that details personal finance data across the previous 80 years, with the aim of estimating how much our costs will rise to by 2028.
According to their estimations, the average property price in the UK will jump by almost £50k by 2028, as the current average stands at £208,318 and will rise to £255,292 over the course of the next 10 years.
One of the headline figures from this research was how much homes will have grown in price over 25 years. In 2003, the average price of a home was £127,246, half the price of what the expected cost of a home will be in 2028.
The study has also forecasted a slight fall in homeownership, as the 14.6 million British homeowners are expected to fall to 14.4 million a decade from now.
Similar changes were also predicted for the rental market as generation rent continues to grow. Money.co.uk has suggested that we will see a 10% increase in rental rates by 2028, rising from an average monthly rate of £925 to £1,017.
“Get a Handle on your outgoings”
Editor in Chief of money.co.uk, Hannah Maundrell, commented on the results of the research, she said; “It’s really hard to save a deposit while you rent. If buying a property is on your bucket list, you need to seriously work out how you are going to achieve it. Getting a handle on your outgoings and incomings is the first step to budgeting for your life. It sounds daunting to budget for life events that feel so far away. However, with prices evidently on the rise, it will take you far longer to save up to achieve your life goals.”
Maundrell went on to say “The figures we’ve predicted are based on trends in Government data. We expect certain external events may have a large impact on future finances, such as large political milestones like Brexit or wage freezes in the public sector.”
Fife Properties Group Office Owner Jim Parker said, “At the end of it all like anything it’s only a prediction and history has demonstrated that it does not always go according to plan. I am in complete agreement though that you must come up with a plan to save towards a good deposit and the good news for first-time buyers is the Scottish Governments Help to Buy ISA is the perfect way. Instantly giving you 25% on top of what you save to go towards a deposit on a property purchase”