Average London house prices could hit GBP 1m by 2030

The average price of a house on the London residential market is set to double by 2030 to GBP 1m, according to a report compiled by Oxford Economics for private sector clients.
“If that happens alongside an increasing divergence between those with high and low incomes, then it will mean affordability problems for people on low incomes,” the consultancy wrote in its report.

Oxford Economics is warning that predictions made by the mayor of London, Boris Johnson, in regards to population and job growth are too conservative. Johnson said that the city’s population will likely hit 10 million by 2036, but Oxford Economics argues it will be closer to 11 million, forecasting that employment will jump by 314,000 over the next two decades.

“We expect that at some point in the next year the mayor’s advisers will revise upwards their forecasts for London’s population and employment. Getting these numbers right is vital if London is to have the schools, the transport infrastructure and the housing that it needs, to support its growth,” said Richard Holt, head of global cities research at Oxford Economics.