The average UK house price could surge by 17% in the next decade, based on historical data from the past 40 years, and is set to reach £400,000 by 2050.
Property buying firm Good Move has studied house prices in the UK since 1980 to predict what the market might look like in thirty years’ time.
Although it admits it can’t do this with complete certainty, it’s come up with a ‘line of best fit’, which could give landlords an idea of how their assets will rise in value.
It predicts that by 2025, average house prices will rise by 5% to £251,476, increasing to £279,641 in 2030 and to £392,301 by 2050 – a total increase of 64% if this continues at the same rate.
Good Move based the calculations on data from Gov.UK to show how average house prices in the UK went from £19,273 in 1980 to £239,927 in 2020 – an incredible 1,145% jump.
The largest five-year increase came between 1985 to 1990, where prices soared by 109% to reach £58,250. What followed was the only dip to £55,437 in 1995.
Director Nima Ghasri says house prices in the UK have increased at an unprecedented rate this year, up by 26% compared to 2015 and 7% compared to 2019.
She adds: “If our predictions are correct, we can expect house prices to soar in the future. However, many things impact house prices, and nobody can predict for certain what the economy and property market might look like in the future, so this doesn’t mean that our predictions are correct.”
Good Move sourced average house price data from 1980 to 2015 from Land Registry data with recent figures taken from The Guardian/Halifax.