18 Feb 2016
More than 5% of the homes in the UK will be worth at least £1million within just 15 years, a new report has claimed.
A study by the London School of Economics has predicted that the gap between the housing "haves" who already own large homes, and the "have nots" struggling to get their foot on the housing ladder, will widen further.
An average UK home which costs £280,000 today is expected to be worth £344,000 in five years' time and will have nearly doubled in price to £557,444 by 2030.
One in 20 homes will be worth more than £1million by this point, according to the forecasts.
The deterioration in housing affordability will mean the average UK property will be priced at nearly 10 times the average income by 2030, the report predicts. The current ratio is 7.9 times.
Paul Cheshire, LSE professor of economic geography and the author of the report, said: "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."
The latest Scottish Parliament data estimates that there are 1,760 home homes worth more than £1million in Scotland at present.
Just under 900 of those (890) are in Edinburgh, 210 are in Aberdeen, 150 each in East Lothian and East Dumbartonshire and 360 throughout the rest of Scotland.
However, Bob Fraser, Senior Property partner at Aberdein Considine, said young buyers currently have “an excellent window” to get onto the property ladder.
“Mortgage rates remain at a historic low and banks are still lending well, so property is more accessible to young people that it has been for a significant period of time.
“We are also offering a 50% discount on legal fees for first time buyers, which is a significant saving worth hundreds of pounds”
If you would like to speak to Bob or a member of our national property team, call 0333 0066 333 or click here.
For more details about our 50% discount for first time buyers, click here.