A baby born today 'will pay £3.4m for their first home'

by Gary Whittaker

A baby born today will have to pay £3.4 million for their first property, according to new research. 

Estate agent eMoov.co.uk has revealed that if the current rate of house price growth continues, a child born in the last 12 months will have to fork out this amount by the time they are 35 in 2048.

The organisation found that since 1954, the cost of property in the UK has increased at an average annual rate of 8.6 per cent. 

This means that even a ten-year-old child today will be faced with paying more than £1.6 million for their first home, requiring a deposit of £320,000. 

Emoov said that by 2032, the typical 20 per cent deposit required to buy a property will be equal to the average price of a home in 2014.

The organisation's chief executive Russell Quirk stated: "Our research shows the staggering truth about the rise of property prices within the UK over recent times.

"If the trend continues then the bank of Mum and Dad will become even more important for the next generation of homeowners."

It would seem parents are already preparing to help their children get on the property ladder, with 67 per cent of those surveyed by eMoov saying they will have to provide financial support for their offspring. 

According to the estate agent, a house worth the national average of £205,199 at the end of 2014 will have a value of £3.391 million in 2048, should current growth trends continue.

Rightmove has recently revealed the average UK house price reached a record high of £286,133 in March.

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24-April-15General Lettings News