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Santander Reports UK Homes Above £1m to Increase by 2030

Posted by Marites Alma Christiansen on Feb 22, 2016 08:13 AM EST
Construction In London more big
LONDON, ENGLAND - OCTOBER 27: Work continues on the Embassy Gardens luxury residential development in Battersea on October 27, 2014 in London, England. Experts have warned that an increase in luxury London homes could trigger a construction crunch as the number of high-end homes being built looks set to outpace construction capacity in the capital. (Photo : Carl Court/Getty Images)

A known mortgage firm had predicted a three-fold increase for homes priced at £1 million to happen in fifteen years, according to a Telegraph UK report. About half a million homes already valued at a million pounds or more have already been recorded by Santander mortgages and is set to continue rising to more than 1.6 million units by 2030.

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Twenty-five percent of housing stock available and priced at this amount would likely grow to 70 percent more in two of London's popular boroughs.

Santander UK's mortgages managing director Miguel Sard commented, "Property price inflation will tip many existing homeowners 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."

Current U.K. average property prices have been at 7.9 times more than the average income earners, however, by 2030, it would go up to 9.7 times the average salary. On the other hand, London's property prices have exceeded income by 11.5 times and set to rise to 16.5 times around that same time, still in the same report.

In a separate report by the Guardian, the Santander mortgage report was researched in cooperation with Paul Chesire, London School of Economics' economic geography professor.

"By 2030, the divide between housing haves at the top and the have-nots at the bottom will be even wider than it is now. More owners will enjoy millionaire status, as homes that many would consider modest fetch seven-figure prices in sought-after areas," said Chesire.

He added, "It will make entering the market more difficult still for new buyers, further highlighting the importance of the right timing, advice, support and financial planning; and not just having a mum and dad who bought a house, but a grandparent, too," as stated in the same report.

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