How Much Will The Average House Cost In 10 Years? Plus More

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Predictions: How Much Will The Average House Cost In 10 Years?

 

There always seems to be new forecasts on how property prices will perform across each year, but new research has aimed to predict how much it will cost to own or rent 10 years from now.

Financial comparison site money.co.uk has analysed data from the Office for National Statistics that details personal finance data across the previous 80 years, with the aim of estimating how much our costs will rise to by 2028.

According to their estimations, the average property price in the UK will jump by almost &50k by 2028, as the current average stands at &208,318 and will rise to &255,292 over the course of the next 10 years.

One of the headline figures from this research is how much homes will have grown in price over 25 years. In 2003, the average price of a home was &127,246, half the price of what the expected cost of a home will be in 2028.

The study has also forecasted a slight fall in homeownership, as the 14.6 million British homeowners are expected to fall to 14.4 million a decade from now.

Similar changes were also predicted for the rental market as generation rent continues to grow. Money.co.uk has suggested that we will see a 10% increase in rental rates by 2028, rising from an average monthly rate of &925 to &1,017.

Editor in Chief of money.co.uk, Hannah Maundrell, commented on the results of the research, she said; “It’s really hard to save a deposit while you rent. If buying a property is on your bucket list, you need to seriously work out how you are going to achieve it. Getting a handle on your outgoings and incomings is the first step to budgeting for your life. It sounds daunting to budget for life events that feel so far away. However, with prices evidently on the rise, it will take you far longer to save up to achieve your life goals.”

Maundrell went on to say “The figures we’ve predicted are based on trends in Government data. We expect certain external events may have a large impact on future finances, such as large political milestones like Brexit or wage freezes in the public sector.”

New £886m Fund For Up To 200,000 UK Homes

 

A new government scheme plans to inject &886M into local councils to help finance and speed up the construction of up to 200,000 homes throughout the UK.

This new fund will be allocated to a variety of council-led projects such as providing new footpaths, improving drainage and relocating sports facilities, all of which improve the viability for the development of new homes.

The government’s investment will provide the financial support needed to get struggling projects off the ground and bring forward the development of homes that may not have begun for a few years.

It was announced that 133 council-led projects throughout the UK will receive a cash boost, projects that include new roads, cycle paths, flood defences and land remediation work, that are vital in providing the infrastructure needed for building new homes.

The government is aiming to build 300,000 new homes each year until 2021, a target that was missed by 150,000 in 2017. However, this funding is part of a larger housing fund that totals at &5 billion and was set up to fix the UK property market.

With this new support speeding up the process from planning permission to construction and with the government making changes to certain regulations that would allow the conversion of industrial buildings into housing, it will hopefully reduce some of the pressure on the UK housing market and in turn create a less harsh environment for first-time buyers by improving affordability.

Chancellor of the Exchequer, Philip Hammond, added his comments during the announcement, he said; “Today marks the first step of the multi-billion-pound investment we announced at the Budget to help build the homes our country needs. This fund finances vital infrastructure such as roads, schools and bridges, which will kick-start housing development in some of Britain’s highest-demand areas.”

Hammond added, “This support will help us meet our ambitious plan of building 300,000 new homes each year and ensure we have enough housing in areas which need it most.”

House Secretary Sajid Javid, also spoke on the new fund, stating that the government's priority was “building the homes this country desperately needs.”

Javid went on to say that “This first wave of investment totalling &866 million will help get up to 200,000 homes off the ground, making a huge difference to communities across the country.

"This is just one of the many ways this government is taking action to get Britain building homes again.”

Renters Pay A Record £51 Billion In 2017

 

 

The latest lettings index has revealed the growth in rental rates throughout the UK across the 12 months to January 2018, with tenants paying record-breaking numbers to rent a home last year.

According to recent figures, rental payments in Britain rose by 2.4% from January 2017 to January 2018, taking the average monthly rent to &958 at the start of the new year.

This rise resulted in tenants paying out &1.8 billion more than they did in 2016, taking total rental payments across the year to a record &51.6 billion, a figure that has more than doubled over the course of the last decade.

The largest increases were seen in Greater London with rents increasing by 3.3% to a monthly average of &1,704. Not too far behind were the regions of the Midlands and the South West, all of which saw their rental prices grow by 2.7% across the year to averages of &669 and &787.

The index also showed that Wales saw a more modest rise of 1.1% to &646 and Scotland saw very little movement in this regard with a slight rise of 0.6% to a new average of &624.

The average across Britain was an increase of 1.9% - if you exclude London - and the only region to see a fall in rental rates was the North East.

Research Director at Countrywide, Johnny Morris, points out that their research shows that the rental market is growing and although the majority of tenants in the UK are Millennials, there is still a strong proportion of the market that is made up of those belonging to an older generation.

Morris commented on the recent research, he said; “The rental market grew in 2017. More people joined the rented sector and average rents increased, meaning 2017 saw the highest total rent bill so far. As millennials age, more are becoming homeowners, so the total amount they’re paying in rent has started to drop. But the Generation Rent title still applies. Any fall will be much smaller and slower than seen by previous generations as less become homeowners.”

Guide: Making An Offer As A First-Time Buyer

 

The property market is possibly more competitive than it’s ever been. You want to be confident when making an offer that you’re not going to be stung by an inflated asking price or take yourself out of the running by offering too low. To help you prepare, we’ve put together the following information to help you through this stage of the home buying process.

The first step and arguably most important step you need to take is speaking to an expert. If you’re a first-time buyer, then you probably don’t have a wealth of knowledge on how the market works and what you can and can’t afford. Get in touch with a mortgage advisor, get informed on how it all works and more importantly, find out what your price range is so when you do make a formal offer you can do so with confidence.

Once you know how much you’ll be able to spend, it’s time to get a better understanding of your local market. The more research the better. Take a look at what’s up for sale and find out what your budget will fetch you in each area.

Build a list of key features that your home will need, such as the number of bedrooms or a driveway. The chances of you moving into your dream property with your first move are somewhat slim, however, it’s important that you know what you’re looking for and how much it will cost you in each area.

It would be wise at this point to get in touch with a local estate agent. You can do as much research as possible, but a good local agent will always be a benefit as they will know the market like the back of their hand. This means that they can fill you in on what to expect from vendors and hopefully help you avoid any pitfalls.

Now that you’ve done your research on what you want, what you can afford and what the market has to offer, it’s time to book some viewings and get out there. Things can move very quickly in the property market, so your previous work and research leading up to this point will come in handy as there’ll be no time wasted travelling to unsuitable areas or over-priced properties.

While viewing properties be sure to check out the building's structure and not just its décor. Check for any damage such as cracks in walls or damp. Make sure you understand exactly what you’re getting into and have a good idea of the current state of the home as it can help form your offer.

If you’ve managed to find the right home, then it would be best to act quickly as there’s a good chance you’re not the only one eyeing up that house. If you’re ready to make an offer, consider a few things before doing so. How much do other similar properties go for in the area? Does the property need some repairs? Have house prices dropped slightly since the home was first put on the market? We’d all love to knock a few thousand off the asking price, but the seller isn’t going to do it just to be nice, so if your offer is lower than the asking price, you’ll need to demonstrate why.

Now before you finally put your offer on the table, try and organise all the other pieces of the puzzle beforehand so you are ready to go as soon as it’s accepted. If you’re a first-time buyer then one of your major benefits is that you don’t have to organise selling your own home, but if you can organise such things as surveys and solicitors then it’ll make the process much smoother.