Using data from the UK House Price Index, we’ve forecasted when the average London property will be worth £1 million.
And the answer is 2042! That’s right, in 25 years’ time the average London home owner will be a millionaire.
This forecast was calculated looking at average London property prices according to the UK HPI Index and average house price growth since 1995.
This forecast takes into account the ups and downs in the market, including the recession in 2008.
According to the latest figures from the HPI Index, London property prices have increased, on average, 4.9% compared to 2016.
Currently, the average UK house price stands at £223,257, but in London this average rises to £431,900, as of June 2017.
While the year 2042 is predicted based on averages since 1995, if we look at house price increases over the past three years and forecast using only the past three years' data, this milestone would be reached by 2036 if prices increased at the same rate.
And if we look at average price rises in the past five years, this £1 million mark could be reached by 2031 – and that’s only 14 years away!
While this is only a forecast – and a projection at that – there will be a day when London’s properties will all be worth £1 million.
