House prices in the UK predicted to increase by nearly 20% in the next 10 years
GoodMove have investigated house prices in the UK over the past 40 years to predict what future house prices might look like from now until 2050
Wondering what house prices might look like in the UK in the future? New research reveals that average house prices could be set to increase by 17% in the next ten years.
Regulated property buyers, GoodMove conducted the research, analysing average property prices in the UK from the past 40 years, using this to predict what could be in store for average house prices in the UK until 2050.
According to data from Gov.UK, the average house prices in the UK from 1980 to 2020, are:
- 1980: £19,273
- 1985: £27,823
- 1990: £58,250
- 1995: £55,437
- 2000: £75,630
- 2005: £158,572
- 2010: £167,469
- 2015: £190,665
- 2020: £239,927
From 1980 to 2020, this means that house prices in the UK have soared by a huge 1145%!
The largest 5-year increase came between 1985 to 1990, where average house prices increased by 109% to reach £58,250. Interestingly, what followed was the only dip in average house prices, falling by 5% to reach an average of £55,437 in 1995.
So, what does this mean for the future of house prices in the UK? Although we cannot predict what house prices may look like in the coming years for certain, we used the data from the past 40 years to predict a line of best fit for the next 30 years.
Our predictions, therefore, are:
- 2025: £251,476
- 2030: £279,641
- 2035: £307,806
- 2040: £335,971
- 2045: £364,136
- 2050: £392,301
If our predictions are correct and house prices continue to rise at the rate, they have been doing for the past 40 years, this means that house prices could increase by a further 64% in thirty years, reaching a whopping £392,301 in 2050!
On a more short-term outlook, we could therefore expect house prices to increase by 5% in five years to £251,476 in 2025, with prices reaching a staggering £307,806 by 2030, if they continue to rise at the same rate.
Commenting on the research, Nima Ghasri, Director at GoodMove says: “This year, house prices in the UK have increased at an unprecedented rate, increasing by 26% compared to 2015 and 7% compared to 2019. House prices have been a huge talking point in the industry this past year, and we wanted to see what we could come to expect if they continue to rise at the same rate as they have since 1980. That’s why we conducted this research.
“If our predictions are correct, we can expect house prices to soar in the future, nearly reaching an eyewatering £400,000 by 2025. 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. Still, it’s interesting to see what we could expect in the UK if house prices follow in the footsteps of the past.”
To find out more about the research, please visit: https://goodmove.co.uk/blog/average-uk-house-prices-1980-2050/
