Child born in UK in 2014 faces paying £3.4 million for first home

A baby born today in the UK faces paying £3.4 million for their first property based on historic house price increases, new research shows.

At the current rate of property growth, if a child is born in 2014, by the time they reach the average first time buyer age of 35, the average house price in 2048 will be an astounding £3.4 million.

Even children of 10 years old today, face paying over £1.6 million for a property, requiring a deposit of over £320,000, according to the research from online estate agent eMoov.

It also shows that if you have a child who is currently four years old, they will most likely need £2.4 million and by 2032 the average 20% deposit needed to buy a property will equal the price of the average price of a property in 2014.

Some 67% of parents polled by eMoov stated that they will have to financially aid their children get on to the property ladder.

A house worth the national average of £205,199 by the end of 2014 is estimated to be worth £3,391,474 in the year 2048 if the historical pattern continues in property.

‘Our research shows the staggering truth about the rise of property prices within the UK over recent times. Property prices are always on the move but viewed over decades our research shows an annual rise of 8.6% since 1954,’ said Russell Quirk chief executive officer of eMoov.

‘If the trend continues then the bank of Mum and Dad will become even more important for the next generation of home owners,’ he added.