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Will UK House Prices Really Soar By 50% Over The Next 10 Years?

Rents are set to sky-rocket, and buying a house is getting further out of reach for many, according to the Association of Residential Letting Agents (ARLA) and National Association of Estate Agents (NAEA) Housing 2025 report.

Compiled with Centre for Economics and Business Research (Cebr), the report predicts the state of the UK property market in ten years' time, and suggests what can be done to repair it.

With the average house price currently around £280,000, the Housing 2025 report predicts house prices will increase by half (50%) their current value by 2025 - reaching an average price of £419,000. It's even worse news for those living in the capital, as house prices are expected to nearly double in the next decade in London, rising from £515,000 to £931,000.

For those planning to enter the rental market in the next few years, the news is just as bleak. Rents are predicted to increase by 27% from a current UK average of £134 per week to £171 in 2025. Again, those living in London will be worse off as they'll need to pay 34% extra in rent per week by 2025, an increase from the current average of £234 per week, up to £314.

Lower homeownership rates amongst the working age population and the ageing of the baby-boom generation will continue to drive a decline in the proportion of UK households that own their own home. Currently around 62% of the working population owns their own home; the ARLA and NAEA Housing 2025 report predicts this will fall to 55% in the next ten years.

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