"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"
- Ed Phillips - Lomond
Lomond's latest research 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.
Lomond 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.
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, Lomond 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 the property price, while needing to earn a whopping £95,121 to be eligible to borrow the required mortgage at 4.5 times income.
London home to highest forecasted FTB house price of almost £1m
Lomond estimated that London would predictably be home to the highest financial hurdle for first-time buyers born today, with the average first-time buyer age currently at 33 and the average first-time buyer house price forecast to hit almost £1m by 2057 - requiring a deposit of £144,630 and an income of £182,126 to get a first foot on the ladder.
The South East (£647,344) and East of England (£628,882) are also forecast to see the average first-time buyer house price climb to some of the highest in the country.
Midlands market to see the highest rate of FTB house price growth
However, based on historic market trends, it’s the East Midlands that is forecast to see the highest increase of all regions. Lomond estimates that the region could see the average price of a first home climb by a huge 125.9% by 2055, with the West Midlands seeing the second-highest rate of growth at 123.9% by 2056.
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."
