Residential properties in the Kensington and Chelsea district of London.
Photograph by Simon Dawson — Bloomberg via Getty Images
By Michal Addady
December 17, 2015

England’s capital city is about to get twice as expensive.

London house prices are set to almost double in the next decade, Business Insider reports. On average, a house in the city costs more than $790,000. By 2025, that number will go up to about $1.4 million. That’s a faster predicted rise than real estate prices in the rest of the U.K., which are expected to be up 50% in the same time.

The National Association of Estate Agents and the Association of Rental Letting Agents estimates that in the U.K. the average price of a house currently stands about $417,000. They predict that number will rise to about $624,000 by 2025 and, in the next five years alone, the cost of a house in the country is projected to increase by 4.5% each year.

“Housing prices are only going to go one way, and unfortunately that is up,” NAEA managing director Mark Hayward said in a housing research report. He said “ongoing house price inflation, combined with low wage inflation, tighter lending restrictions and a shortage of affordable housing” will make owning a home tougher and tougher for many Brittons.

It will also become increasingly difficult for renters to save up for a house because a lot of their earnings will go towards rising rent prices.

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