Average UK house price to rise 50 per cent in a decade

The increase would mean that by by 2025 house prices will be around £139,000 higher typically than the current average of around £280,000.

In London, the average property is expected to be worth £931,000 in 10 years’ time – up from around £515,000 now - as housing supply shortages continue to push up prices.

Mark Hayward, managing director of the National Association of Estate Agents which is behind the study, said: “House prices are only going to go one way, and unfortunately that is up. For so many already priced out of the market, this is news aspiring house buyers will not want to hear.

“Ongoing house price inflation, combined with low wage inflation, tighter lending restrictions and a shortage of affordable housing, means owning a home will continue to be a distant dream for many.

“Increased rental costs will also make it more difficult for current renters to save for a house deposit.”

The report also expects rents to surge by 27 per cent, from the current UK average of £134 per week to £171 by 2025.

It said renters in London can expect to be paying more than one third (34 per cent) more in 10 years’ time, an average of £314.

David Cox, managing director of Arla, said the three percentage point stamp duty hike for buy-to-let investors, which is set to come into force in April, could add to the upward pressure on rents as it could put off would-be landlords from entering the market.