House prices set to rise by up to 61.1% – forecast
UK house prices could rise by as much as 61.1% by 2036, requiring up to £70,000 for a deposit, which could take up to 12 years to save for based on projected average annual earnings, according to Sell House Fast.
It says that semi-detached homes will see the largest increase in average prices over the ten-year period, up 61.1% from £288,607 to £465,040 and requiring a 10% deposit of £46,504, which would take around 7.9 years to save for based on projected earnings.
Terraced homes are predicted to increase by 60.6%, to £385,616. This is equivalent to a £38,562 deposit, which would take an estimated 6.6 years to save.
12 years to save for a detached property
Meanwhile, the largest deposit will be required for detached properties, expected to rise in price by 51.7% to £691,755 and requiring a £69,176 deposit, which would take nearly 12 years to save.
Flats and maisonettes are forecast to rise by 35.9% to £279,605. These would require an average deposit of £27,961, or around 4.8 years of saving.
Detached houses to hit £1 million by 2045
Jack Malnick, managing director of Sell House Fast, said: “As house prices continue to rise, our forecast suggests the average UK home could cost £455,504 by 2036, and as high as £670,000 by 2045. Detached houses are expected to reach the £1 million mark on average by this point.
“This long-term growth suggests sustained demand and regional disparities between the North and South, which will likely increase over time, except for Manchester. According to our predictions, Manchester will consistently rank in the top 10 areas with the longest times needed to save for a deposit.
“First-time buyers may face increasing difficulties in the next 10 to 20 years, with the average deposit rising to an estimated £45,551 by 2036 and £67,000 in 2045. Deposit saving time is set to rise to nine years or more. As a result, younger generations will need to begin planning their financial future much earlier.”
Predicted housing prices and deposit by 2036:
| Property Type | Average Property Price 2036 | Average Deposit Cost | Average Annual Earnings | Number of Years Needed To Save for a 10% Deposit | Average Property Price 2026 | % increase from 2026 |
| Detached Houses | £691,755 | £69,176 | £58,826 | 11.8 | £455,941 | 51.7% |
| Semi-Detached Houses | £465,040 | £46,504 | £58,826 | 7.9 | £288,607 | 61.1% |
| Terraced Houses | £385,616 | £38,562 | £58,826 | 6.6 | £240,079 | 60.6% |
| Flats and Maisonettes | £279,605 | £27,961 | £58,826 | 4.8 | £205,736 | 35.9% |
