Three times more million pound properties expected within fifteen years
Within the short space of fifteen years the number of million pound properties in the UK is expected to triple and unsurprisingly 25% of these will be in London. A new study by Santander Mortgages has shown that by 2030 the housing stock in the capital will see one in four properties valued at more than a million pounds. That is an average of course as in two London boroughs the number of properties at the million pound mark will be over 70% which illustrates the growing geographical divide.
This divide is demonstrated by the study which shows that less than 1% of properties which are in the regions of the North East, Yorkshire and Humberside, North West, Scotland and the East Midlands, can expect to reach the million pound mark. However it is anticipated that the average property price over the whole of the UK, will double by 2030, taking it over the half million mark and that will worryingly mean that they will be as much as 16.5 times average incomes. Currently less than half a million homes are valued at the million pounds or more figure.
The major concern of course, is that income will not keep pace with property price inflation, which will result in further decline in affordability. This is illustrated by the fact that at the moment property prices equate to 7.9 times the average income, but by 2030, this is expected to hit a multiple of 9.7. In London currently the affordability index stands at 11.5 times incomes, but it is predicted to rise to a figure of 16.5 by 2030 which by any stretch of the imagination has to be unattainable for many.
What is clear is that many aspiring home buyers could be priced out of the housing market, whilst for others, of course, they will join the million pound property club, but advice from mortgage providers like Santander, is that they should always do their research and find a mortgage provider that offers competitive rates and a range of products to ensure that the right deal is secured. One thing is vital though and that is to ensure that you can always make sure that the payments will be affordable to you, both now and taking into account any rate rises.
So the future in the property market by 2030 will see more people living in million pound homes, that today, although in desirable sought after areas, would fetch a much lower price, but the divide between the haves and have nots, is clearly going to be much wider than it is today.