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House price predictions for 2025

Christina Hoghton
Written By:
Christina Hoghton

What will your property be worth in 10 years’ time?

House prices are set to soar by 50% and rents will rocket by over a quarter in the next 10 years, according to a new report from the Association of Residential Letting Agents (ARLA) and National Association of Estate Agents (NAEA).

The Housing 2025 report will do nothing to ease the worry of wannabe homeowners, faced with the prospect of property prices moving even further out of reach. And with rents already at record highs tenants will not look forward to a decade of significant increases.

The report says that drastic and immediate policy overhaul is necessary to fix Britain’s broken housing market.

10-year housing predictions

With the average house price currently around £280,000, the Housing 2025 report predicts house prices will increase by half (50%) their current value by 2025 – reaching an average price of £419,000.

Rents are predicted to increase by 27% from a current UK average of £134 per week to £171 in 2025.

Currently around 62% of the working population owns their own home; the ARLA and NAEA Housing 2025 report predicts this will fall to 55% in the next ten years, boosting demand for rental properties, and driving house prices up. The proportion of private renters in the UK will increase from 20% of households in 2015, to nearly 29% by 2025.

David Cox, managing director of the Association of Residential Letting Agents (ARLA), said: “Buying and renting a home is a giant step, and is out of reach for many. Rent costs are already growing at a rate that people are struggling to keep up with, and they’re due to become even less sustainable over the next decade.”

And Mark Hayward, managing director of the National Association of Estate Agents (NAEA), added: “House prices are only going to go one way, and unfortunately that is up. For so many already priced out of the market, this is news aspiring house buyers will not want to hear.”