According to studies looking at the changes in property prices since the year 2000, if prices continue to rise at a similar pace to the previous 15 years, we could see England’s average house price jump above £450,000 by 2030.
This research was carried out by online agent eMoov as they used their data to apply the same 84% increase in prices since 2000, to all areas across the UK.
The results of these calculations showed average property prices of £457,433 but ranging from just under £280,000 to just over £3.4 million.
As expected, London would continue to be the most expensive region to live. Projections from the study show Barking and Dagenham as the cheapest of the London Boroughs with potential prices of £450,000 or higher, and areas such as Kensington and Chelsea potentially rising from £1.9 million to £3.4million.
In stark contrast to this, there are some areas throughout the UK that show average prices less than £280,000, such as Durham (£279,985), East Riding of Yorkshire (£277,411) and Merseyside (£275,074) with price projections roughly £175,000 lower than the England average.
This study also extended to Wales and suggested an increase to £307,712 and Scotland which would be the cheapest country to live in if predictions are correct at £297,222.
Founder of the company Russell Quirk said the reason for undertaking this research was to highlight “just how dangerous this current artificial inflation of the market could be in the long run” and also stated that “Although rising prices are always good news for current homeowners, it’s extremely worrying to look at the difficulty many have in getting on the ladder at the moment, let alone with a price jump of 84% by 2030.”
The prospect of a no deal Brexit is naturally concerning business’, investors and home owners across the U.K, but it still looks unlikely, despite the Parliamentary opposition to the deal Theresa May has agreed with Brussels. While a number of other outcomes are also possible, it is hard to see why or how the Government invokes a second referendum or general election. There may well be a political crisis or an extension to Article 50, but our base case is that, eventually, the deal will be approved, mainly because the only alternative is no deal. Nevertheless, the uncertainty will delay and complicate some investor and occupier decision making.
Whilst Brexit remains top of the political agenda it’s not the only theme that will impact the UK real estate market in 2019. What with shifting workspace requirements, new technologies and structural changes having even more of a dramatic impact than in previous decades.