Average house prices in London to hit £1 million by 2030

London's economic growth and employment rates are predicted to cause the steep rise

The average home in London is expected to cost £1 million by 2030, doubling market prices over the next fifteen years.

The forecasting body Oxford Economics has predicted that the price of the average home in the capital will continue to rise due to London's growing economy and population.

The company also predicted the strong growth seen in London's economy will continue over the next decades, continuing to surpass that of Paris and Frankfurt.

The Greater London Authority believe that nearly 10 million people will be living in the capital by 2030, painting a bleak future for those attempting to get onto the housing market.

The population growth is projected to be higher in some areas than others as populations around the boroughs will continue to vary.

Oxford Economics said: “Even if earnings grow only slightly faster in London than nationally, and even if higher interest rates, tighter credit and more cautious borrowing behaviour all mean that London house prices keep pace with earnings rather than racing ahead, average house prices in London are likely to breach the £1 million barrier before 2030."

The predictions will only increase pressure on the Conservative government’s election pledges, as homeowners may want to see an increased attention on housing plans.