Written on 18 May 2015 by Alistair Boscawen in Property News
Strong investment, jobs growth, a rising population and a shortage of housing will push the average value of London home past the £1m mark by 2030.
And Oxford Economics – a global forecaster that has recently published analysis of change that is likely to confront London’s economy in the decade and a half from 2015 up to 2030 – says the figure is likely to be higher if house price rises continued to outpace earnings growth.
The average price of a London home currently stands at £490,000, , according to the Office for National Statistics.
But the latest analysis points out that London’s population will increase to 11 million by the middle of the next decade. This is at odds with forecasts from the Mayor of London’s office that says it will rise from 8.5 million today to 10 million by 2036.
Oxford Economics says the projections from Mayor Boris Johnson’s office fail to take into account the boom in employment over the last two years.
The analysts add that if the rapid rise in population growth coincided with “an increasing divergence between those with high and low incomes, then it will mean affordability problems for people on low incomes. Of course a lot will depend on the rate of house building.”
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