A baby born today might never be able to afford to buy a house

New research suggests average house price could reach £3.4m

Updated: 
A baby born today faces paying £3.4 million for their first property

Buying a property is out of reach for many of us in the current climate but spare a thought for the babies of today who may never be able to afford to buy their own house.

Our generation and previous generations have witnessed significant rises in property values but what about the next generation of home owners?

Rising house prices

New research has revealed that at the current rate of property growth, if a child is born in 2014, by the time they reach the average first time buyer age of 35, the average house price in 2048 will be an astounding £3.4 million.

The research by online estate agent eMoov.co.uk also revealed that 4-year-olds will most likely need £2.4 million to buy a property and even children of 10 years old face paying over £1.6 million for a property, requiring a deposit of over £320,000.

By 2032 the average 20% deposit needed to buy a property will equal the price of the average price of a property in 2014.

A house worth the national average of £205,199 by the end of 2014 is estimated to be worth £3,391,474 in the year 2048 if the historical pattern continues in property.

The bank of Mum and Dad

Generation Z's (The Millennial Generation) parents are already preparing, as 67% of parents polled by eMoov.co.uk stated that they will have to financially aid their children get on to the property ladder.

If the trend continues then the bank of Mum and Dad will become even more important for the next generation of home owners.

Current AgeYearYears until typical FTB ageValue at Jan 1st Annual Increase (Unadjusted for RPI) Value at Dec 31st Deposit Required
3520141£ 188,949£ 16,250£ 205,199£ 41,040
3420152£ 205,199£ 17,647£ 222,846£ 44,569
3320163£ 222,846£ 19,165£ 242,010£ 48,402
3220174£ 242,010£ 20,813£ 262,823£ 52,565
3120185£ 262,823£ 22,603£ 285,426£ 57,085
3020196£ 285,426£ 24,547£ 309,973£ 61,995
2920207£ 309,973£ 26,658£ 336,630£ 67,326
2820218£ 336,630£ 28,950£ 365,581£ 73,116
2720229£ 365,581£ 31,440£ 397,021£ 79,404
26202310£ 397,021£ 34,144£ 431,164£ 86,233
25202411£ 431,164£ 37,080£ 468,244£ 93,649
24202512£ 468,244£ 40,269£ 508,514£ 101,703
23202613£ 508,514£ 43,732£ 552,246£ 110,449
22202714£ 552,246£ 47,493£ 599,739£ 119,948
21202815£ 599,739£ 51,578£ 651,316£ 130,263
20202916£ 651,316£ 56,013£ 707,330£ 141,466
19203017£ 707,330£ 60,830£ 768,160£ 153,632
18203118£ 768,160£ 66,062£ 834,222£ 166,844
17203219£ 834,222£ 71,743£ 905,965£ 181,193
16203320£ 905,965£ 77,913£ 983,878£ 196,776
15203421£ 983,878£ 84,613£ 1,068,491£ 213,698
14203522£ 1,068,491£ 91,890£ 1,160,381£ 232,076
13203623£ 1,160,381£ 99,793£ 1,260,174£ 252,035
12203724£ 1,260,174£ 108,375£ 1,368,549£ 273,710
11203825£ 1,368,549£ 117,695£ 1,486,244£ 297,249
10203926£ 1,486,244£ 127,817£ 1,614,061£ 322,812
9204027£ 1,614,061£ 138,809£ 1,752,871£ 350,574
8204128£ 1,752,871£ 150,747£ 1,903,618£ 380,724
7204229£ 1,903,618£ 163,711£ 2,067,329£ 413,466
6204330£ 2,067,329£ 177,790£ 2,245,119£ 449,024
5204431£ 2,245,119£ 193,080£ 2,438,199£ 487,640
4204532£ 2,438,199£ 209,685£ 2,647,884£ 529,577
3204633£ 2,647,884£ 227,718£ 2,875,602£ 575,120
2204734£ 2,875,602£ 247,302£ 3,122,904£ 624,581
1204835£ 3,122,904£ 268,570£ 3,391,474£ 678,295


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