This is according to new analysis from property sales company Sell House Fast, which used housing market trends over the past decade to reveal how much it would cost to buy a house in 2036 and save for a down payment.
But while the survey results may be good news for current homeowners hoping for strong home price inflation to boost their equity, the news may not be so promising for aspiring first-time homebuyers.
First-time buyers who responded to the survey even feared that they would ‘never be able to catch up’ with such high house price forecasts.
House prices: how high will they be in 2036?
Semi-detached houses The biggest increases were expected to occur, with average prices rising 61.1% from £288,607 to £465,040 by 2036, Sell House Fast found.
First-time buyers would need a 10% deposit of £46,504, with buyers needing to save around 7.9 years based on expected income.
Terraced housesMeanwhile, the price is predicted to rise by 60.6%, taking the average price to £385,616. This equates to a deposit of £38,562, with an estimated 6.6 years to save.
Detached houses Price tags of £691,755 could appear in 2036, researchers have found – this is a 51.7% increase on the current price of £455,941. Buyers would need a deposit of £69,176, which is much more than the expected average annual salary of £58,826 for 2036. In fact, buyers would need the equivalent of almost twelve years’ income to save for a deposit of this size.
Flats and maisonettes A price increase of 35.9% is forecast from £205,736 to £279,605. First-time buyers would need an average deposit of £27,961, or around 4.8 years of savings based on expected income.
Novice buyer: “I’m afraid we will never catch up”
Jack Dowell (pictured, left, with his partner), a graphic designer at a marketing agency in Kendal, said he and his partner feel like the goalposts keep moving as they try to save for their first home.
“I’m afraid we’ll never catch up,” he continued. “Every time we get closer to our savings target, house prices seem to advance even further.
“We have already accepted that a detached or semi-detached house is not realistic for us as first-time buyers in Kendal, but now it feels like even a terraced house may be out of reach.
“But the thought of spending £279,000 on a flat is hard to understand when my parents bought a four-bedroom house for a similar amount.
“It feels like the dream of owning your own home is getting further away, instead of closer.”
How high will prices rise in 2045?
According to Jack Malnick, managing director of Sell House Fast, the forecast suggests that the average house in Britain could cost £455,504 by 2036. But by 2045 this could reach as much as £670,000.
Detached houses are expected to reach the £1 million mark on average at this point, he said.
“This long-term growth indicates continued demand and regional disparities between North and South,” Malnick added, “which are likely to increase over time, except for Manchester.
“According to our predictions, Manchester will consistently be in the top 10 areas with the longest times it takes to save for a deposit.
“First-time buyers could face increasing challenges over the next 10 to 20 years, with the average deposit rising to an estimated £45,551 by 2036 and £67,000 by 2045. The savings time for deposits is expected to reach nine years or more.
“As a result, younger generations will have to start planning their financial future much earlier.”