Rental demand set to stay high as first time buyer age rises

With house prices at an all-time high, showing no signs of waning, the age of first-time buyers is on the rise according to comparethemarket. 

The comparison site has analysed government data from 1992 to 2020, fed that through a forecasting model, and predicts substantial price rises in the long term.

It says that by 2031, house prices in Greater London are predicted to increase by a third, whereas the rest of the UK are likely to see a slighter lesser increase of 30 per cent. 

Looking ahead, the UK property market is set to see incremental house price increases until the year 2040. For Greater London residents, their first home will cost 63 per cent more than in 2021, whilst UK house prices look set to increase by 58 per cent overall.

Comparing that with predicted income, comparethemarket forecasts that the average age of a first-time buyer in London - currently 35 years old - will in 2031 rise to 37. The rest of England will see an average age increase of 1.6 years, jumping to almost 35.

Other elements of the website’s research shows that prospective first time buyers are broadly likely to continue their existing spending patterns, despite the likelihood of property affordability becoming worse.

Commenting on the findings Chris King, head of home insurance at the website, says: “Despite house prices seeing an all-time high and the average age of first-time buyers set to increase over the next 10 years, it’s interesting to see that buying habits have remained similar.”