UK house prices to hit £300,000 by 2025

UK house prices to hit £300,000 by 2025

0:02 AM, 26th September 2023, About 8 months ago 3

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The average UK house price is expected to reach £300,000 by August 2025, according to a new report by easyMoney.

The online investment platform has analysed the historic data of the UK’s property market since the 1970s to find how quickly it has surpassed each £50,000 house price threshold.

It reveals that the average house price hit the £10,000 mark for the first time in January 1976 and took 12.5 years to reach £50,000 in July 1988.

It then took another 13.6 years to climb to £100,000 in February 2002, followed by a rapid increase to £150,000 in just 2.5 years by August 2004.

It took 11 years to reach £200,000

However, the financial crisis of 2007/8 slowed down the market growth and it took 11 years to reach £200,000 in July 2015.

The next milestone of £250,000 was achieved in March 2021, after a pandemic-induced house price boom.

The current average house price is just shy of £290,000, but easyMoney estimates that it will take until the end of August 2025 to reach the £300,000 mark.

This would mean a space of 4.4 years between the £250,000 and £300,000 thresholds.

UK housing market is susceptible to wider economic ebbs

Jason Ferrando, easyMoney‘s chief executive, said: “On a short-term basis, the UK housing market is certainly susceptible to wider economic ebbs, flows and woes.

“But when you step back and look at the market’s long-term performance, it’s clear how strong, reliable, and resilient UK housing is as an investment asset.”

He added: “As such, if investors are attracted to the property market, we would encourage them to shake off any concerns about the immediate economic landscape and instead look at long-term performance and consistency of the market’s performance over the last 50 years.”


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Comments

JB

13:53 PM, 26th September 2023, About 8 months ago

What fun numbers are! £50,000 is worth less and less as we progress through the years. I would look at times to double the price
£50,00 to £100,000 13.6 years
£100,000 to £200,000 13.5 years
£200,000 to £400,000 not yet known
...and the conclusion is....?

Teessider

14:34 PM, 26th September 2023, About 8 months ago

House prices over the long term will rise because that’s how inflation works.
Better to look at house prices in terms of average salaries.
In post-war Britain, houses cost less than 4x the average salary. Today, it’s over 9x the average salary.
This rise has been influenced, in part, by ridiculously low interest rates and decades of inflation being under control.
Things are changing.
Inflation is much higher than wage inflation. The National Debt is monstrous. We don’t have a single politician that is fit for office (except, perhaps, Suella Braverman).
Instead of focussing on the numbers, consider house prices in relation to average salaries. I don’t think house prices will ever be over 9x average salaries again. It simply isn’t sustainable.

Besides, the average house price was £288k in May 2023. Put that money in the bank and it’ll be £300k before 2024.

News Commentator

6:52 AM, 27th September 2023, About 8 months ago

Our latest Property & Homemover Report (Q2 2023) reveals that average house prices across the UK increased to £447k which is up 6% on Q1 2023 and an increase of 24% compared to 2019 (the last normal period since before Covid). Despite small declines in some areas of the UK our insight is not calling out a significant price fall in the residential market.
Colin Bradshaw, Managing Director, TwentyCi

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