The current crop of aspiring property owners in the UK face many more barriers than their parents and grandparents when it comes to the possibility of purchasing, a reality that has led to more and more renting, and has helped with the creation of more of a European model, where most people rent. But how will this change in the future? What are the next generation going to be faced with?
If current predictions are to be believed, it could well be the case that we see an even more prominent trend of people renting rather than buying. While people who are looking to get on the ladder at the moment are facing more million pound plus properties than ever before, someone born today could face average of more than three times this by the time they come to buy!
This is the prediction of online estate agent eMoov, which looked at historic property trends and current rates of price increase. Using this method, it said that if prices continue to move at the current pace, 2014's newborns will face average prices of £3.4 million when they reach the age of 35 in 2048.
Even those who are ten at the moment would be facing prices of £1.6 million at current rates of increase by the time they hit 35, which would mean they would need a deposit of a staggering £320,000 on average to secure a mortgage.
The survey also asked parents of the current crop of kids how they saw their child financing their purchase, and some 67 per cent said that they believed they would need to help out in some way. However, if prices hit such a staggering level, it may be the case that they simply don't buy, with most renting instead.
"Our research shows the staggering truth about the rise of property prices within the UK over recent times. Property prices are always on the move but viewed over decades our research shows an annual rise of 8.6 per cent since 1954," said Russell Quirk chief executive officer of eMoov, adding that the bank of mum and dad could be worth a lot more than just a little boost in the future.