The average house price in Britain could surpass £1m in just 16 years’ time, according to the Liberal Democrats.
Research from the political party suggests that property prices will increase from a current average of £290,000 to £1.017m in 2032.
The prediction is based on trends recorded by the Office for National Statistics (ONS), which show house price inflation for the past three years.
Average House Price to Surpass £1m by 2032, Believes Lib Dems
The Liberal Democrats’ research found that the average property price would hit £650,000 within a decade – a rise of £360,000 on today’s typical value.
The party is backing a debate in the House of Commons today, which is calling on the Government to provide more new homes for young people.
Measures include allowing councils to build more homes through lifting the current arbitrary cap on council borrowing, and building ten new garden cities, including five in the South East of England.
Leader of the Liberal Democrats, Tim Farron, comments: “A child born on the day of the debate faces the prospect of paying at least a million for a home to call their own.
“Relying on the bank of mum and dad isn’t an option for everyone and adds pressure to millions of families who have worked hard and done the right thing.
“The continuing upward spiral of house prices threatens the very idea of a family home.”1
The Government has already pledged changes to the housing market, including:
- £2 billion – Chancellor George Osborne has doubled the housing budget to £2 billion to fund the building of more homes.
- 400,000 new homes – The Government vows to build 400,000 new homes by 2020.
- 5 housing associations – The Right to Buy scheme is being extended to housing association tenants, starting with a pilot in five housing associations.
- 3% Stamp Duty – From 1st April, buy-to-let investors and second homebuyers will be charged an extra 3% in Stamp Duty when they purchase a property worth more than £40,000. The Chancellor believes this will raise around £1 billion by 2020. Find out how this is already affecting the market: /landlords-rushing-to-avoid-buy-to-let-tax-changes/
For the latest property market updates, remember to check LandlordNews.co.uk.
1 http://www.telegraph.co.uk/finance/property/12147282/Average-home-in-Britain-to-cost-over-1million-by-2032.html
View Comments (1)
£1.017 million! I wonder who compiled these figures on behalf of the LibDems? It's a slightly more liberal estimate than Santander's, which predicts prices of £560,000 by 2030.
Acceleration of this level presupposes continued exponential growth. But the slowdown in price growth in recent years suggests that this won't be the case, and that growth is more likely to be linear.
To me, Santander's figures are slightly more compelling.