Previous generations have witnessed significant rises in property values. It’s been a subject of debate around the dinner table and gained enormous media attention, but what about the next generation of home owners?
Leading online estate agent eMoov.co.uk have released statistics which show that a baby born today faces the prospect of paying £3.4 million for their first property.
Looking at historic house price data since 1954, there has been an average annual increase of 8.6%. At the current rate of property growth, if a child is born in 2014, by the time they reach the average first time buyer age of 35, the average house price in 2048 will be an astounding £3.4 million.
Even children of 10 years old today, face paying over £1.6 million for a property, requiring a deposit of over £320,000. If you have a child who is currently 4 years old, they will most likely need £2.4 million.
By 2032 the average 20% deposit needed to buy a property will equal the price of the average price of a property in 2014.
Generation Z’s (The Millennial Generation) parents are already preparing, as 67% of parents polled by eMoov.co.uk stated that they will have to financially aid their children get on to the property ladder.
A house worth the national average of £205,199 by the end of 2014 is estimated to be worth £3,391,474 in the year 2048 if the historical pattern continues in property.
Property expert Russell Quirk CEO of online estate agent eMoov.co.uk commented:
“Our research shows the staggering truth about the rise of property prices within the UK over recent times. Property prices are always on the move but viewed over decades our research shows an annual rise of 8.6% since 1954. If the trend continues then the bank of Mum and Dad will become even more important for the next generation of home owners”.