Million pound properties in the UK to triple by 2030

Million pound properties in the UK to triple by 2030

A new report from Santander Mortgages has claimed that the number of UK properties worth at least £1 million is expected to more than triple between now and 2030.

Today, less than half a million homes in the UK are valued at £1 million or more, but this is set to rise to over 1.6 million in the next 15 years.

Working in partnership with economist and LSE Professor of Economic Geography – Paul Cheshire, Santander looked at the future of the UK property market with a forward focus on £1 million+ homes and what drives the market. It's “Property Millionaires: The Growing Housing Divide” report found that by 2030, 25 per cent of housing stock in London is expected to be valued at £1 million or more, rising to 70 per cent in two London boroughs.

While seven per cent of homes in the South East are expected to fetch £1 million+ by 2030, less than one per cent in the North East, Yorkshire and Humber, North West, Scotland and the East Midlands are expected to do the same, highlighting a stark geographical divide.  

Overall, the average UK property price, which currently stands at £283,5652 is expected to increase 23 per cent by 2020 to £349,3000. Fifteen years from now in 2030, the average UK property price will have almost doubled (97 per cent increase), surpassing the half a million pound mark at £557,444.


Affordability

While property prices are expected to soar, predictions suggest that incomes will not keep pace, resulting in an overall decline in affordability. At present in the UK, the average property price is 7.9 times the average income, but by 2030, this is expected to hit a multiple of 9.7. Again, this trend is elevated in London, where prices are currently 11.5 times incomes and predicted to rise to an eye-watering 16.5 by 2030.

Miguel Sard Managing Director of Mortgages, Santander UK said: “Property price inflation will tip many existing home owners into the million pound price bracket but could also price some aspiring buyers out of the market if they don't have the right support. The current property market is buoyant and the deals available to new and existing owners are extremely competitive, so those wishing to buy or move shouldn't be put off.

Regardless of the price point a buyer is considering, our advice remains the same; do your research, find a mortgage provider that offers competitive rates and a range of products to ensure that the right deal is secured, and above all, ensure the repayments are affordable.”

Professor Paul Cheshire, LSE Professor of Economic Geography, commented: “By 2030 the divide between housing haves at the top and the have-nots at the bottom will be even wider than it is now. More owners will enjoy millionaire status, as homes that many would consider modest fetch seven figure prices in the most sought-after areas. Property price inflation is beneficial for existing owners who will see their net-wealth increase, but it will make entering the market more difficult still for new buyers, further highlighting the importance of the right timing, advice, support and financial planning; and not just having a mum and dad who bought a house but a grandparent too.”

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Latest Comments

MBM Homelets
MBM Homelets 23 Mar 2017

Although this is a very positive step, there is little or no guarantee of the standard of workmanship employed by the tenants. We have had experience of a professionally decorated property being ' painted'...

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ajay
ajay 21 Mar 2017

How is the "robust evidence" looking now?

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NathanG
NathanG 20 Mar 2017

I've been watching the series so far and am completely baffled by the cases that were presented. Though, I don't think that we can protect ourselves from every scam possible - it will just make the scammers...

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Landlady14
Landlady14 01 Mar 2017

You would think so Niraj Shah! My experience only proves that there are varying qualitiers of professional in all aspects of property letting. None of the ones I have dealt with, from letting agents to...

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Mark
Mark 01 Mar 2017

Thanks for this article. Hopefully one day everybody's lifestyle will be eco-sustainable.

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Ben Taylor
Ben Taylor 28 Feb 2017

I was convinced that London was the most expensive!

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Alan Read
Alan Read 28 Feb 2017

Australia are leading the way in this I think. The trouble with Britain is we don't get enough sun to make use of solar power.

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James Powell
James Powell 27 Feb 2017

This is a very good news.

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DanHumphreys
DanHumphreys 27 Feb 2017

It sounds like a good idea. Anything to help the younger generation get a foothold.

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Matt
Matt 20 Feb 2017

Is this fake news?

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Matthew Hollywood
Matthew Hollywood 07 Feb 2017

Matthew Hollywood - Director Mishon Mackay Land & New Homes - Brighton The shortage of New Homes is in part effected by the lack of land sales. Land sales are held back because there is a disparity between...

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CommercialTrust
CommercialTrust 30 Jan 2017

Hi Graham, Would be interesting to see the above figure calculated against an investment via a Lt Company /SPV structure and if the investor found themselves pushed in to the higher tax bracket. Mortgage...

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