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3 bed semis will be a thing of the past by 2025

The quintessential English garden is fast becoming a thing of the past, especially if you live in areas of high demand such as London and the South East, according to a new report commissioned by Woolwich.

The research was conducted by CEBR and predicts that by 2025, the typical three bed semi will be a rare sight, with housing stock split between smaller more compact dwellings for first time buyers, and a return to the Victorian era where generations of families buy together in order to get more space.

Average house price in 2025 is predicted to be £333,000 up from today’s figure of £156,530 an increase of 112%.

Increasing levels of divorce and separation will move housing trends towards more single person households.

Government housing plans will also result in homes being smaller and built closer together, with gardens, garages and conservatories all being sacrificed.

With the number of households in the UK set to rise by 17.5 per cent by 2025, the report also reveals a new North South divide for first time buyer affordability.

First time buyers wanting to live in the South East will face an uphill struggle. The number of homes in the south east under the average house price of £150,000 will drop dramatically from 45% in 2005 to just 15% in 2025.

First time buyers wanting to live in the West Midlands will be the best off, where it is predicted that they will be able to afford up to 60% of the homes in the region in 2025 compared to just 45% now.

First time buyers wanting to live in the North East, North West, West Midlands and Yorkshire & Humberside will all find that they will be able to afford more homes in 2025 than they can now in these regions with more houses being priced below the average house price.

Andy Gray, head of mortgages at Woolwich, said: “Whilst the future looks sunnier for first time buyers, it?s increasingly looking like they won?t have a garden to enjoy it in. Increased availability and affordability of houses mean that things are looking up for first time buyers, but this will come at a price.

At the other end of the scale, we expect to see generations of families moving into larger properties together in order to maximize space. This may have added benefits in terms of child care and nursing costs for elderly relatives.”


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