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The UK’s House Prices of the Future

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.

The UK Areas with the Biggest House Price Increases

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.

City/Local Authority February 2047 House Price February 2047 Average Deposit Projected 26 Year Increase Projected % Increase
Brighton and Hove £3,400,141 £510,021 £2,999,505 748.7%
Hastings £1,788,199 £268,230 £1,547,880 644.1%
City of Bristol £2,288,776 £343,316 £1,972,599 623.9%
Thanet £1,833,634 £275,045 £1,564,060 580.2%
Southend-on-Sea £2,087,729 £313,159 £1,778,627 575.4%
Hinckley and Bosworth £1,631,628 £244,744 £1,386,742 566.3%
Cambridge £3,135,625 £470,344 £2,660,801 560.4%
Basildon £2,181,497 £327,225 £1,846,974 552.1%
Brentwood £2,898,590 £434,789 £2,452,867 550.3%
Hertsmere £3,105,916 £465,887 £2,626,275 547.6%
The London Boroughs with the Biggest House Price Increases

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.

London Borough February 2047 House Price February 2047 Average Deposit Projected 26 Year Increase Projected % Increase
City of London £10,604,400 £10,604,400 £9,929,091 1470.3%
Hackney £5,949,703 £5,949,703 £5,363,943 915.7%
Southwark £4,636,494 £4,636,494 £4,091,403 750.6%
Lambeth £4,340,102 £4,340,102 £3,809,575 718.1%
City of Westminster £8,132,690 £8,132,690 £7,132,130 712.8%
Tower Hamlets £3,650,075 £3,650,075 £3,194,442 701.1%
Islington £5,568,489 £5,568,489 £4,867,698 694.6%
Waltham Forest £3,744,898 £3,744,898 £3,270,050 688.7%
Newham £3,223,719 £3,223,719 £2,813,431 685.7%
Haringey £4,380,833 £4,380,833 £3,813,481 672.2%
The UK Cities with the Smallest House Price Increases

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.

City/Local Authority February 2047 House Price February 2047 Average Deposit Projected 26 Year Increase Projected % Increase
Blackpool £328,255 £49,238 £213,386 185.8%
County Durham £332,106 £49,816 £219,384 194.6%
Carlisle £413,091 £61,964 £275,632 200.5%
Hartlepool £349,548 £52,432 £234,110 202.8%
Wyre £494,461 £74,169 £332,163 204.7%
Darlington £412,110 £61,817 £281,574 215.7%
Hyndburn £291,045 £43,657 £198,872 215.8%
Stockton-on-Tees £456,149 £68,422 £313,741 220.3%
Fylde £605,898 £90,885 £417,803 222.1%
Middlesbrough £411,210 £61,682 £285,131 226.2%
The London Boroughs with the Smallest House Price Increases

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.

London Borough February 2047 House Price February 2047 Average Deposit Projected 26 Year Increase Projected % Increase
Havering £2,128,599 £319,290 £1,750,386 462.8%
Hammersmith and Fulham £3,713,788 £557,068 £3,053,923 462.8%
Bexley £2,055,903 £308,385 £1,692,491 465.7%
Enfield £2,290,384 £343,558 £1,885,695 466.0%
Harrow £2,679,096 £401,864 £2,205,759 466.0%
Bromley £2,671,818 £400,773 £2,206,950 474.7%
Croydon £2,284,885 £342,733 £1,889,522 477.9%
Barnet £3,085,856 £462,878 £2,553,969 480.2%
Sutton £2,460,318 £369,048 £2,043,819 490.7%
Hillingdon £2,600,095 £390,014 £2,164,338 496.7%
Methodology

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.

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