Study shows UK house prices potential rise by 51% as government fails to act on affordable housing crisis.

A new study has found that the average UK house price could hit £362,350 by 2045. This number is based on the market’s current growth, with property values continuing to increase at this rate. This could see a 51% increase from the current average of £239,196. The average homebuyer would also see their 10% mortgage deposit climb to £36,235 – that’s an increase of £12,315 from the average initial cost currently required.

The study by estate agent Barrows and Forrester also reveals that property prices in London could reach £789,531. The research looked into analysing historic data on housing prices and their rate of growth over the last 25 years to determine potential figures that could be actualised by 2045. For buyers in the South East of England, average house prices could rise to a predicted £524,726. This means that buyers would require £19,258 extra to afford a deposit for a property in this region, on top of the current average of £33,215. According to the research, those looking for property in the East of England could see the average house price rise by £167,135. House prices in South West could increase by £151,255, while homes in the West Midlands could go up by more than £100,000. House prices in the North East are predicted to climb by as much as £70,041. This would bring the average to £201,742, requiring a 10% mortgage deposit in excess of £20,000 from home buyers.

For many, these figures are a frightening reminder of the government’s stagnant approach to the affordable housing crisis. Year after year, the government has consistently failed to act upon the call for affordable housing. The UK housing market bounced back from the pandemic market pause, and house prices are climbing once again. This rising trend has been maintained for the last quarter of a century and continues to increase to an unprecedented high. Promises to address the nationwide housing crisis have been made on multiple occasions, yet the government continues to neglect its responsibility with very few new builds being provided. In 2019, the BBC reported that yet another government plan to create new homes in England had resulted in no homes being built, the National Audit Office has found. A government plan to create 200,000 new homes in England for first-time buyers has resulted in no homes being built, the National Audit Office has found. None of 200,000 starter homes pledged five years prior had been built, according to watchdog

Barrows and Forrester hope that the study will act as a call to action for the government. They say this should be a warning to “refocus their attention on the delivery of affordable housing stock for the masses” to address “the spiralling issue of affordability for many homebuyers.