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UK house prices: Babies born today will pay £3.4m for their first home


04-23-2015

Start saving that pocket money, kids... (Source: Getty)

If the current generation of first-time buyers thought they had it bad, spare a thought for the children born today, who will have to pay several million pounds for their first home, research has revealed.

A study by online estate agent Emoov found that, given house price inflation - which has averaged out at 8.6 per cent since 1954 - if a child born in 2015 buys their first home in 2048, ie. at the (current average) age of 35, they'll pay £3.4m for the privilege. 

It's not just newborns who will be faced with a multi-million pound first property: the average 10-year-old will pay £1.6m for their first home, suggested Emoov.

There's more: by 2032, a 20 per cent deposit on a home will be the same as the average house price now. 

The news comes after findings by Shelter showed half of parents are worried their children won't be able to buy a home until they get their inheritance. The research also suggested a third of 25-34 year-olds who do own property were given money by their parents or a relative. 

Russell Quirk, Emoov's chief executive, pointed out that " ifthe trend continues then the bank of Mum and Dad will become even more important for the next generation of home owners". 

Of course, you could look on the bright side - we might all be living on the Moon by then...

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