Retirement savers relying on a property pension can expect to see the value of their homes shoot up by around 56% over the next decade.
Property guru Russell Quirk, founder and chief executive of online estate agent eMoov, has predicted the massive uplift in prices after crunching house price data from the past 10 years.
He reckons the average British home will come with a £347,757 price tag in 10 years’ time – the latest official Land Registry data puts the average home price for June 2017 at £223,257, which represents a 4.9% increase over a year.
Quirk reached his figure by using Land Registry data to show the average monthly home price went up by 0.37% a month between June 2016 and June 2017. The increase was then forecast for each month from June 2017 until June 2027.
Property pension outlook
People relying on a property pension to downsize or to sell to swell their money in the bank for retirement will be buoyed by the news.
The property pension winners live in Nottingham, where home prices have gone up 0.8% a month on average since the Brexit referendum. If that rate of growth continues, prices will increase by 160% by June 2027.
Home owners in Glasgow, Cardiff, Oxford and Edinburgh would also see increase of at least 112%.
Although London has seen a small rise of 0.18% a month since the Brexit vote, house prices start from a higher average price and are likely to reach £597,544 by June 2027, says Quirk.
“With latest industry figures indicating an end to the post-Brexit market slowdown that has seemingly plagued the market over the last 18 months, many UK homeowners will be breathing a sigh of relief, despite having still enjoyed a notable annual increase in their property’s value,” said Quirk.
“Although these recent slower rates of price growth are unlikely to persist going forward, and we are by no means predicting they will, this research demonstrates that the outlook would still be rather positive and far from the apocalyptic prophecy’s many have talked the market down with since the Brexit vote.”
But be warned, the house price prediction is based on a trend coming from a small dataset and is unlikely to prove accurate.