Above:If the rate of price growth continues for the next two decades, average property in the UK could be worth more than £1 million by 2032.

Summary:

• With demand continuing to outpace supply, average property in the UK could be worth £1 million by 2032
• UK house prices hit a record high in January 2016, registering at £212,430
• At least 240,000 new homes need to be built every year to keep up with demand

The average property in the UK could cost more than £1 million by 2032.

By looking at current house price trends, taken from Office for National Statistics figures, the UK property market could see the value of the average home hit £650,000 in ten years’ time.

Over the next 16 years, prices are projected to more than triple from the present £290,000 to £1,017,000.

UK house prices hit a record high last month, with Halifax bank citing an average of £212,430. This figure means prices grew by 9.7% on January 2015, compared with a rate of pay growth of only 2%.

Robert Gardner, Chief Economist at Nationwide, said: “With this trend expected to continue and with interest rates also likely to stay on hold for longer than previously anticipated, the demand for homes is likely to strengthen in the months ahead.”

With ten buyers to every property on the market, supply continues to fall far behind demand, causing property prices to increase year-on-year. In a bid to address the undersupply, the government has made some progress in boosting the level of house building in recent years, but is still way behind its target of 400,000 new homes under construction by 2020.

Though the government-built homes will ease demand slightly, a lack of supply will still exist, with Town and Country Planning Association stating they believe that at least 240,000 new homes a year are needed until 2031.

Source: Select property