"Homeownership and parenthood are two life milestones that are often intrinsically linked and the arrival of a child can spur the decision to either buy or upsize in order to provide a firm foundation on which to build a family"
- Marc von Grundherr - Benham and Reeves
The latest research by London lettings and estate agent, Benham and Reeves, has revealed that in now less than 24 areas of the UK property market, parents could have covered the cost of their child thanks to the house price appreciation seen on their property.
Benham and Reeves looked at the cost of raising a child from birth to the age of five, before comparing this cost to the level of house price appreciation seen across the UK property market over the last five years.
Research from investment platform, Moneyfarm, shows that the cost of having a child starts at £4,071 during pregnancy and climbs to a total of £75,113 by the time the child celebrates its fifth birthday.
But whilst our children are often the best investment we ever make, property isn’t far behind.
Over the last five years, the average UK house price has climbed by 24.8% - an increase of £57,611.
However, further analysis by Benham and Reeves has shown that in no less than 24 areas of the UK property market, house prices over the last five years have climbed in excess of the £75,113 required to raise a child to the age of five - and by as much as £120,645 in some areas.
The current average house price in the Cotswold’s is £503,865 - up £120,645 from five years ago. The London Borough of Brent has seen house prices climb by £109,690 in the last five years, whilst the average property value is up £97,269 across Bath and North East Somerset.
Other areas where house prices have climbed by enough to cover the cost of raising a child include Richmond, Tunbridge Wells, Tewkesbury, Trafford, Waverley, South Oxfordshire, Epsom and Ewell, Redbridge, Tandridge, St Albans, Cherwell, Mole Valley, Salford, Windsor and Maidenhead, West Devon, Solihull, East Renfrewshire, Cheltenham, South Staffordshire, Bristol and Harrow.
A further 19 locations have seen house price growth of between £70,000 and £74,849 - enough to make a serious dent in the cost of raising a child.
“Homeownership and parenthood are two life milestones that are often intrinsically linked and the arrival of a child can spur the decision to either buy or upsize in order to provide a firm foundation on which to build a family," comments Director of Benham and Reeves, Marc von Grundherr, "Of course, both come at a sizable cost and, for some, the decision to have a child can mean abandoning dreams of a larger home at that point in life.
He adds, "Whilst there’s no doubt that parenthood is a very worthwhile investment, it can certainly pay to push as hard as possible to also realise your dream of homeownership because, as our research shows, the consistently strong performance of the UK property market can, in some cases, cover the cost of raising a child.”
