Getting on the property ladder is a major concern for young adults, but with house prices continually growing, becoming a homeowner can seem like an unrealistic goal.
When we look at house prices of the past, we can see just how much they have skyrocketed over the years. With this in mind, can we predict the selling prices of the future? We took a look at official data as far back as 1995 to discover how the historical growth of prices may inform the prices of the future.
Projecting 26 years into the future based on the prices of 26 years ago, we can reveal the UK’s house prices of 2047.
Looking at the growth month on month in each local authority, we were able to calculate the average monthly growth rate to predict what house prices might look like 26 years from now. Brighton and Hove tops the list, having a huge growth of 748.7%, taking the average 2047 house price up to over £3.4m.
London is notoriously expensive when it comes to buying property, but what will the prices look like in 26 years time? We predict prices in the City of London being as high as £10m, a huge increase of 1470% from the average 2021 price of £675,309.
While some areas look set to have astronomical increases in house prices over the next 26 years, other areas look like they will still remain affordable, even with a consistent rate of growth. Blackpool will be the most affordable place with an increase of 185.76%, taking the average house price up to £328,255.
Just as with the UK cities, there are some London Boroughs which look as though they will be more affordable than the huge prices of others. We predict that Havering will see the smallest growth, though at 426.80%, it will still be a considerable increase, taking the average house price from £378,213 to over £2m.
We used government data of the UK House Price Index which gave us the average house prices in each local authority going back to 1995. The data also gave us the average monthly growth rates which we applied to the February 2021 average house prices, multiplying each following month by the average growth rate, projecting forward 26 years.
These figures are estimates based on our calculations, and assuming that house prices grow at a constant rate, consistent with the rate since 1995.