Property millionaires to treble by 2030

February 28, 2016 by Brendan O'Neill

Property Market

The number of properties costing £1 million plus is expected to treble, according to a study conducted by Santander.

The average house price is also predicted to jump, as the study indicates it will cost around £500,000 for an average home. According to figures published by The Guardian, there are currently fewer than 500,000 properties that have a value of £1 million or more. The research, which was produced in conjunction with Paul Cheshire, professor of economic geography at the London School of Economics, has forecast 1.6 million properties to have a value of more than £1 million by 2030.

The average property price now is £283,565, while the study predicts that by 2020, the average house price will be £349,300. At the end of the next decade, the average property price will be around £557,444. The figures indicate a rise of 4.5% for property values, every year until 2030.

As wages are not expected to reach average growth levels until the future, if at all, the rising property prices could create problems for borrowers in the future. Most of the properties valued at £1 million or more will be located in the south east and London.

In other areas of the UK, property values are expected to increase at a much slower rate. Experts also believe that slow wage growth and the tax hits to investors could slow growth in this sector.

Seeking advice from a reputable CeMAP qualified mortgage adviser will provide reassurance that you have the most affordable deal for your circumstances.