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Yorkshire Bank forecasts average property will cost £4.9m in 2052

The average UK house price could soar by 50 times to £4.9m from £100,400 by 2052, according to Yorkshire Bank.

Its research says 50 years ago the average house cost £2,028 and, if this level of increase continues, a monthly mortgage payment of £400 could reach £20,000 in 50 years.

Based on its findings, Yorkshire says a £5m budget which would now buy a six-bedroom mansion in Kensington would only buy a standard three-bedroom semi in 2052.

The survey, which coincides with this year&#39s golden jubilee celebrations, tells homeowners they could be millionaires if they are willing to wait 50 years.

Yorkshire says the proportion of owner-occupied homes compared with rental properties has more than doubled over the last five decades to 68 per cent from 29 per cent, suggesting that the UK is fast becoming a nation of homeowners.

Chief operating officer Paul Fegan says: “Although these figures do not represent current inflation rates, UK house prices have increased almost 50-fold in as many years, so it is not out of the question that they could do the same again.

“While the rate of house price growth does fluctuate and sometimes slow down, the fact remains that the cost of property is continuing to go up.

“But with the array of mortgages on the market to suit customers&#39 needs, it might be that future generations will have little trouble affording a £5m home.”

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