London house prices to ‘average £1 million by 2030’Comments Off on London house prices to ‘average £1 million by 2030’
The average home in the capital is expected to cost £1 million by 2030, according to forecasting body Oxford Economics.
That would be a doubling of prices over the next fifteen years, a rate illustrating the scale of the task ordinary Londoners may face in getting on the property ladder.
In its analysis of what lies ahead for the city, Oxford Economics said strong growth in London’s economy – which is currently beating that of the rest of Britain and European rivals like Paris and Frankfurt – will continue for many years to come.
There will also be 800,000 more jobs and more than 10 million people living in the City by 2030.
Those factors will be the drivers for house price rises, Oxford Economics said.
“Even if earnings grow only slightly faster in London than nationally, and even if higher interest rates, tighter credit and more cautious borrowing behaviour all mean that London house prices keep pace with earnings rather than racing ahead, average house prices in London are likely to breach the £1 million barrier before 2030.”
The estimate may fuel calls for David Cameron’s new government to deliver pre-election promises and lay out strategies that could help alleviate the shortage of housing supply.