The number of million pound properties in the UK will more than triple by 2030, new research suggests
By that date, one in four London homes will cost more than £1 million.
But the north/south divide will continue with less than 1% of properties in the North East, Yorkshire and Humber, North West, Scotland and the East Midlands worth £1 million or more.
The average UK property price is expected to double by 2030, taking it past the half a million pound mark, according to the research by Santander Mortgages.
It also suggests that prices are set to soar to as much as 16.5 times average incomes by 2030.
Santander produced the research in partnership with economist and LSE professor of economic geography Paul Cheshire.
Its report, Property Millionaires: The Growing Housing Divide, predicts that the average UK property will increase 23% by 2020 from £283,565 to £349,300.
By 2030, it will have almost doubled to £557,444.
However, incomes will not keep pace, resulting in an overall decline in affordability. The average UK property costs 7.9 times the average income, but by 2030 this is expected to hit 9.7.
In London, where prices are currently 11.5 times incomes, multiples are predicted to hit an eye-watering 16.5 by 2030.
Miguel Sard, managing director of mortgages, Santander UK said: “Property price inflation will tip many existing home owners into the million pound price bracket but could also price some aspiring buyers out of the market if they don’t have the right support.
“The current property market is buoyant and the deals available to new and existing owners are extremely competitive, so those wishing to buy or move shouldn’t be put off.”
Professor Cheshire said the divide between housing haves at the top and the have-nots at the bottom will be even wider than it is now.
“Property price inflation is beneficial for existing owners who will see their net-wealth increase, but it will make entering the market more difficult still for new buyers.”