New research suggests that anyone born today in Nottinghamshire and the rest of the East Midlands could face an eye-watering average pricetag of almost £900,000 when they are ready to climb onto the property ladder.
Independent letting and sales agent Benham and Reeves has looked at the current struggle facing the nation’s first-time buyers (FTBs) and how this could increase over the next 34 years for those born today.
The London-based company looked at historic FTB property price data from the Land Registry and how this had changed month to month before projecting these monthly price changes forward 34 years to see what the average first-time buyer house price could hit for those born today.
With the average FTB now 34 years of age and today’s average FTB house price in the East Midlands £162,200, those born today could be looking at an average of £898, 665 to get on the ladder in 34 years’ time.
This is, of course, much higher in London and despite the current market slowdown, the average FTB house price in London is now £412,679, this could increase to a huge £4.5m over the next 34 years.
The data shows the average FTB house price would also top the £1m mark in the East of England and the South East, where the average house prices are currently £241,259 and £259,567 but could hit £1.9m by 2052.
The cheapest area to buy for FTBs born today would be the North East with a predicted price of £210,739, up from £110,645 today.
Benham and Reeves director, Marc von Grundherr, commented: “This research considers the ups and downs of the first-time buyer market historically and how things could play out for the generation of first-time buyers being born today if these trends were to repeat themselves.
"Of course, it’s impossible to predict the future of the UK property market, particularly given the current turbulence caused by wider economic and political factors. However, this research acts as a warning of what could happen if we continue to fail in the delivery of affordable starter homes.
"Not only does it show the huge jump in prices over previous years but how this could worsen further down the line. "
"While we hope that prices won’t reach these dizzying heights, we’ve certainly seen stranger things happen across the UK property market in the last 34 years, so who knows what the next 34 may bring.”
Are you looking to get onto the property ladder? If so, check out these recent articles we have created on the two ends of the market: