The number of UK properties worth at least £1m is expected to more than triple between now and 2030, according to a new report from Santander Mortgages.
Fewer than half a million homes in the UK are currently valued at £1m or more, but this is set to rise to more than 1.6 million properties in the next 15 years.
The report found that by 2030, 25pc of housing stock in London is expected to be valued at £1m or more, rising to 70pc in two London boroughs.
While 7pc of homes in the South East are expected to fetch £1m or more by 2030, less than 1pc in the North East, Yorkshire and Humber, North West, Scotland and the East Midlands will do the same, highlighting a stark geographical divide.
Overall, the average UK property price, which currently stands at £283,565 according to the Land Registry, is expected to increase 23pc by 2020 to £349,300. Fifteen years from now in 2030, the average UK property price will have almost doubled, surpassing the half-a-million pound mark at £557,444.
While property prices are expected to soar, predictions suggest that incomes will not keep pace, resulting in an overall decline in affordability, the report found.
At present in the UK, the average property price is 7.9 times the average income, but by 2030, this is expected to hit 9.7 times the average salary.
In London, where prices are currently 11.5 times income, they are predicted to rise to an eye-watering 16.5 times income by 2030.
Miguel Sard, managing director of mortgages at Santander UK, said: “Property price inflation will tip many existing home owners into the million-pound price bracket but could also price some aspiring buyers out of the market, if they don’t have the right support.”
Professor Paul Cheshire from London School of Economics and Political Science, who co-authored the report, said: “Property price inflation is beneficial for existing owners who will see their net-wealth increase, but it will make entering the market more difficult still for new buyers.”