Typical home worth will rise £44,322 by 2031, up to date Spring Statement forecasts present – what is going to occur in YOUR space
The average cost of a home is set to rise 16.4 per cent by 2030-31, the Office for Budget Responsibility said in its economic update on Tuesday.
In November 2025, the OBR said it expected average residential property prices to increase by a smaller 16.1 per cent by 2030-31.
But the OBR has uprated that forecast with the typical home set to rise by £44,322 in the next five years.
It said property prices were on track to increase by 2 per cent across Britain this year.
Using official house price data, Coventry Building Society has analysed what a 16.4 per cent increase in average property prices would look like in different locations.
According to its analysis, in line with current OBR forecasts, the average house price in Britain would climb from £270,259 to £314,581 by 2030-31.
Going up: Coventry Building Society has analysed what a 16.4% increase in average property prices would look like in different locations by 2030-31
In London the average price of a home would increase from around £551,294 to £641,706, an increase of more than £90,000.
Across Wales, the average cost of a home stands at around £214,883, but this is expected to increase to £250,124 by 2030-31, Coventry Building Society said.
In Scotland, average property prices look set to jump from £190,640 this year to an average of £221,915 by 2030-31.
The average first-time buyer house price in England would jump from £244,799 to £284,946 by 2030-31.
Sarah Brown, of Coventry Building Society, said: ‘While a steady rise in house prices may be reassuring for existing homeowners, it risks making the path to homeownership even tougher for aspiring buyers.
‘Even relatively modest annual growth quickly adds up, and a 16.4 per cent increase by the end of the decade could mean needing tens of thousands more for a typical purchase.
‘For first time buyers in particular, higher prices don’t just raise the deposit hurdle – they also increase the size of the mortgage needed to get on the ladder.’
| Location | Average House Price 2026 | Average House Price 2030-31 |
| London | £551,294 | £641,706 |
| South East | £378,800 | £440,923 |
| East of England | £338,002 | £393,434 |
| South West | £301,226 | £350,627 |
| West Midlands | £246,141 | £286,508 |
| East Midlands | £243,632 | £283,588 |
| North West | £217,248 | £252,877 |
| Yorkshire and The Humber | £208,447 | £242,632 |
| North East | £165,257 | £192,359 |
| England | £291,865 | £339,731 |
| Scotland | £190,649 | £221,915 |
| Wales | £214,883 | £250,124 |
| Northern Ireland | £195,936 | £228,070 |
| United Kingdom | £270,259 | £314,581 |
Brown said the key question now was whether wage growth can keep pace with house price growth.
Brown added: ‘Interest rates also play a role in shaping what borrowers can realistically borrow and repay.
‘Without supportive income growth, or easing borrowing costs, many new buyers may find the goalposts continuing to move further out of reach.’
Some analysts claim the conflict in the Middle East means UK interest rates could remain higher for longer, with the pace of expected interest rate cuts reduced.
This, in turn, could mean people pay higher sums for their mortgage for longer.
The Bank of England tends to cut interest rates as inflation returns to its 2 per cent target.
Capital Economics previously predicted inflation would hit the 2 per cent target in spring, but this is now in jeopardy thanks to the potential of rising petrol prices, household energy costs and grocery inflation.
