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1:00 AM 20th March 2024
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Baby Born Today Faces £500k First Property

 
Photo by Michal Bar Haim on Unsplash
Photo by Michal Bar Haim on Unsplash
The latest research by Lomond, one of the UK’s largest estate and letting agency groups, has revealed that a baby born today will need to earn £95,121 to get a foot on the ladder, with the average first-time buyer house price estimated to climb to £503,584 by the time they reach the average first-time buyer age of 31.

The company looked at the current average first-time buyer age across each region of Britain, before analysing historic house price data to forecast what the average house price could look like for a baby born today once they reach the current first-time buyer age.

British baby born today faces first-time buyer house price of £503,583

The research shows that across Britain, the average first-time buyer age currently stands at 31 years old, meaning that a baby born today won’t own their own home until the year 2055.

Based on historic house price growth over the last 31 years, the company estimates that the average first-time buyer house price could hit a hefty £503,584 by 2055, an increase of 111.9% on the current average house price of £237,655 paid by first-time buyers today.

Should this worrying forecast become a reality, the average baby born today would be facing a huge task in climbing the property ladder, requiring a mortgage deposit of £75,538 at 15% of property price, while needing to earn a whopping £95,121 to be eligible to borrow the required mortgage at 4.5 times income.

See the full breakdown for each region here

Lomond CEO, Ed Phillips, commented:
“It seems quite unbelievable that a baby born today could face paying half a million pounds for their first home, but you would probably have thought the same thirty odd years ago had someone told you the price of property today.

"What it certainly highlights is that Britain is home to one of the most robust and desirable property markets on the global stage and investing in property is almost always going to be a safe bet.

"We do however need to see the issue of supply and the insufficient level of new homes being delivered addressed, if our children are to ever have a chance of realising their own ambitions of homeownership."