Average UK house to cost £385k by 2025, £930k in London

Midas

New report here (pdf) by the Centre for Economics and Business Research on prospects for the UK housing market.

Main predictions:

Average UK house to cost £385k by 2025
Average London home to cost £935k :eek:
Average weekly rent in the UK to increase from £134 in 2014 to £164 by 2025
Percentage of owner-occupiers to decline from 62% now to 55% by 2025

Note that this report was commissioned by the Association of Residential Letting Agents and the National Association of Estate Agents, who have a particular agenda to push. However, the report still makes some good points I think. One notable point is that (thanks to low interest rates) the proportion of income going on mortgage payments has not shot up anything like as dramatically as house prices, suggesting that if rates stay relatively low for the medium term (which I think they will) prices will probably continue to rise.

PasturesNew

Where I live, according to Rightmove if I fire it up, the average house price is about £400k. There's a large choice of perfectly good houses from about £230-260k ... drive up the road 1.5 miles and you can almost buy any good 2-3 bed house you like for about the same.

The £2million houses a mile the other way will be skewing things a bit though.

Average doesn't mean median.

For the record, I just did an RM search. My place, radius of 1 mile, 2-3 bed houses, £230-260k.... there were 9. Push it out to 3 miles and there's a choice of 20. Quite a few of them I'd be more than happy to live in. None are bad areas.

Location: Desirable south coast.

AdrianC

Of course, the London figure is easily skewed by a relatively small number of VERY expensive properties.

If there's one £20m property to every 50 £500k properties, the mean will be nearly £900k.