This is according to new analysis by property selling firm Sell House Fast, which used housing market trends over the past decade to reveal how much it will cost to buy a home and save for a deposit by 2036.
But while the results of its investigation may come as good news for existing homeowners hoping for strong home price inflation to boost equity, the news may not be quite so promising for aspiring first-time buyers.
In fact, first-time buyers who responded to the survey feared they would “never catch up” with sky-high home price expectations.
House prices – what will they be in 2036?
Semi-detached houses It is expected to see the biggest increases, with average prices rising 61.1% from £288,607 to £465,040 by 2036, Sell House Fast found.
First time buyers will need a 10% deposit of £46,504, with buyers needing to save for approximately 7.9 years based on expected earnings.
Terraced housesMeanwhile, the price is expected to rise by 60.6%, taking average prices to £385,616. This equates to a deposit of £38,562, with an estimated 6.6 years required to save.
Separate properties The researchers found that the price could reach £691,755 by 2036. This represents a 51.7% increase on the current price of £455,941. Buyers will need a deposit of £69,176, which is well above the expected 2036 average annual salary of £58,826. In reality, buyers would need the equivalent of around 12 years’ earnings to save up for a deposit of this size.
Apartments and small houses The price is expected to rise by 35.9% from £205,736 to £279,605. First-time buyers will need to make an average deposit of £27,961, or around 4.8 years of saving based on expected earnings.
First-time buyer: ‘I’m afraid we’ll never catch up’
Jack Doyle (pictured, left, with his partner), a graphic designer at a marketing agency in Kendall, said he and his partner feel as if the goalposts keep moving as they try to save for their first home.
“I’m afraid we’ll never catch up,” he continued. “Every time we get closer to our savings goal, home prices seem to move forward.
“We had already accepted that a detached or semi-detached house was not realistic for us as first-time buyers in Kendal, but now it looks as if a terraced house may be out of reach.
“But the idea of spending £279,000 on a flat is hard to imagine when my parents bought a four-bedroom house for a similar amount.
“The dream of homeownership seems to be getting further away, not closer.”
How much will prices rise in 2045?
According to Jack Malnick, managing director of Sell House Fast, forecasts show that the average house price in the UK could reach £455,504 by 2036. But by 2045, it could reach £670,000.
Detached homes are expected to reach an average of £1 million by this stage, he said.
“This long-term growth points to sustained demand and regional disparities between north and south, which, with the exception of Manchester, are likely to increase over time,” Malnick added.
“According to our forecasts, Manchester will consistently rank among the top 10 areas with the longest times to save for a deposit.
“First-time buyers may face increasing difficulties in the next 10 to 20 years, with average deposits rising to an estimated £45,551 by 2036 and £67,000 in 2045. The time to save deposits is set to rise to nine years or more.
“As a result, younger generations will need to start planning for their financial futures much earlier.”
