UK homes worth £1 million set to triple by 2030

UK homes worth £1 million set to triple by 2030

The number of homes in the UK worth more than a million pounds will triple between now and the end of the next decade, according to the latest report from Santander Mortgages. 

It said that the continued growth in house prices, which grew by almost seven per cent in 2015 according to the latest official figures, will mean that by 2030 there are three times as many homes over this price threshold as there are currently. 

And it will be London that continues to see the highest proportion of million-pound properties in the future. According to the study, one in four homes across the city will cost more than a million pounds by 2030. This is compared to other areas such as the north-east, Scotland, Yorkshire and the Humber, the north-west and the East Midlands, where only one per cent of homes will be sold above this price. 

Santander also looked at the way in which house prices are set to grow in general across the course of the next few years, and it forecasts that the current average price of £283,565 is expected to increase to just under £350,000 by the end of this decade. 

By 2030, prices are set to increase at an even stronger pace, coming in at almost double what they currently cost, with the average prices 97 per cent above their current position, just shy of £560,000 and far ahead of the half-million barrier for the first time. 

"Property price inflation will tip many existing home owners into the million pound price bracket but could also price some aspiring buyers out of the market if they don’t have the right support. The current property market is buoyant and the deals available to new and existing owners are extremely competitive, so those wishing to buy or move shouldn’t be put off," said Miguel Sard, managing director of mortgages, Santander UK.