In as little as 17 years, the average first-timer could be forced to pay this amount to get onto the ladder if house prices continue to follow the current growth trend.
Areas which boast particularly high house prices such as Greater London, the South East and the South West will hit this mark much sooner than 2024 – 11, 15, and 16 years respectively – causing chaos for unlucky first-time buyers.
However, those in the more Northern region of Yorkshire & Humber will have to wait 20 years to hit this mark.
The biggest change since last year is in Northern Ireland. In 2006 it was estimated that a Northern Irish first time buyer property would cost £1million in 2025, however due to rapid house price growth over the past 12 months, this is now predicted to occur in 2018 – 7 years sooner and on a par with London.
Other regions where high house price growth has led to predictions coming forward are Scotland (-4 years), North East (-4 years), Wales (-3 years) and Yorkshire and Humberside (-3 years).
The £1 million starter home could require a worrying seven times the average first time buyer income (2024 - £136,074) and result in many consumers either not purchasing a home or putting off other life goals such as marriage or children to get on the property ladder. This development would also put pressure on lenders as they struggled to provide financing in a responsible and sustainable manner.
Paul Chafer, sales director from Stroud & Swindon Building Society said of the research: “This forecast paints a worrying picture for the future of the housing market. The data shows that getting onto the first rung of the property ladder is set to get even harder in coming years. Most people assume they will own their own home at some point in the future, however the results of our research shows that our children are going to find it very difficult to afford it.
“Even with house price increases set to slow down to more acceptable levels, we believe that in future first-time buyers are going to be forced to put off purchasing their first home for even longer. Therefore, it is vitally important for both potential first time buyers and their parents to start putting money aside for a house deposit as soon as possible.
“Mortgage providers also need to consider their lending criteria and actively work to develop products that help first-time buyers to get onto the property ladder in a responsible and sustainable manner. It is pointless simply increasing income multiples if this is going to result in consumers taking on levels of debt they cannot service.
“First-time buyers are the life blood of the housing market and we hope that this shocking picture of the potential future will force all those concerned to work towards averting this crisis!”
