With house prices in the UK are on the rise, according to data from Oxford Economics, property in London will hit an average of £1 million by 2030, which is double the current average house price of £490,000 according to the Office for National Statistics (ONS). The reasoning is an expectation of further economic growth and a continuous shortage of housing. The population of the capital is forecasted to increase from current day 8.5 million to 11 million but housing supply is expected to remain far below demand.

Should house prices continue to outpace UK earnings growth, then the average figure for a property in London could be even higher than £1 million.

Richard Holt, head of global cities research at Oxford Economics noted that home ownership will be out of reach for an entire generation of Britons with the expected rate of increases in house prices.

Mr. Holt said, “If everybody’s pay rises at the same rate that may not be too much of a problem. But if pay at the top end rises much faster than for people on low wages, then the affordability challenge will just get worse.”

The report said, “Even if earnings grow only slightly faster in London than nationally, and even if higher interest rates, tighter credit and more cautious borrowing behaviour all mean that London house prices keep pace with earnings rather than racing ahead, average house prices in London are likely to breach the £1 million barrier before 2030.”

With the up and coming generations being shut out of home ownership, many may find that their only opportunity to own their own home is to move out of the UK and that is a problem that needs a solution soon.