Houses prices to top £650k
11 March 2004
London house prices will rocket to £650,000 in the next 20 years, The Evening Standard has reported.
A new report by the Centre for Economics and Business Research found that a typical home will cost ten times the average London salary by 2024.
The report argues that £1 million will be a standard price for a family home in much of London, with the market predicted to boom again around 2010 following a slowdown.
The capital's expanding population and thriving economy will drive the growth, according to the Housing Futures 2024 report.
It also claims that house price inflation will average around five per cent in London and 4.5 per cent in the UK overall.
Co-author Doug McWilliams said the unprecedented increase will force more young people to flat-share in larger households.
"I think we will see flat sharing coming back in a big way," he said, adding that recent years have seen a 20 per cent rise in households of six or more.