Financial comparison site money.co.uk predicts our future finances by analysing ONS data from the past 80 years to make a forecast for the next 10 years, taking into consideration inflation and rising expenses.
Have you considered how your finances could look in 10 years’ time?
As the tool analyses personal finance data over the past 80 years, money.co.uk can reveal the shocking rate at which we can expect our personal finance costs to increase by 2028.
Average house to increase by 20% to £255,292
The tool estimates the number of Brits buying a home in 2028 will decrease. In 2017, money.co.uk estimates that 14.6 million people in the UK own a home. However, in the next 10 years, this is looking to drop to 14.4 million
With the average cost of buying a home set to increase by 20% in the next decade, from £208,318 in 2017 to £255,2924 in 2028, unachievable deposits could be forcing people to privately rent.
In 2003, the average house was £127,246 – meaning house prices will have seen a 100% increase in just over 25 years by the year 2028.
The average price of rent set to increase by 10% by 2028
The tool by money.co.uk not only reveals that house prices will go up by 20%, but that average monthly rent across the UK is set to increase by only 10%, from £925 to £1,017. Could this mean that the UK property market will become more geared towards renting rather than buying?
Hannah Maundrell, Editor in Chief of money.co.uk, said: “The cost of our major life events like buying a house and getting married are rising but wages are not keeping up. More than ever before people need to make their finances a priority. Our predictions can give people a good indication of how much these life events are going to cost and the amount they need to save for their dream futures. It’s no surprise the UK is adopting a renting culture as house prices are quickly outstripping what people can realistically afford.
It’s really hard to save a deposit while you rent. If buying a property is on your bucket list, you need to seriously work out how you are going to achieve it. Getting a handle on your outgoings and incomings is the first step to budgeting for your life. It sounds daunting to budget for life events that feel so far away. However, with prices evidently on the rise it will take you far longer to save up to achieve your life goals.”
The figures we’ve predicted are based on trends in government data. We expect certain external events may have a large impact on future finances, such as large political milestones like Brexit or wage freezes in the public sector”.