You read the headline right and no you are not dreaming, let alone having a nightmare, the average cost of a Winchester house could be nearly £600k by 2029.

Estate agent Savills released research asserting average house prices would increase by 23.4 per cent nationally over the next five years.

In the South East Savills predict prices will increase by 18 per cent by 2029. The company says the relatively dampened growth is due to the area's 'lack of affordability.'

As of August 2024, the average price of a house in the city is £505,000 according to the Office for National Statistics, up 10 per cent on the 2023 average.

If prices grow by 18 per cent to 2029 the average house price will rise by £90,900 to £595,000.

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According to housing affordability statistics released by the ONS, the affordability ratio in Winchester is 13.2. The median income is £37,149 and the median house price is £490,000.

The most affordable local authorities are Burnley and Hyndburn, which had ratios below four. The least affordable area is Kensington and Chelsea, whose ratio is 34.3.

In their research, Savills highlight that despite falling mortgage rates buyers in the South East need to borrow more relative to their income and accumulate a bigger deposit to buy.

Speaking about the national findings Lucian Cook, head of residential research at Savills, said: "With less external noise, house prices in the medium term will be dictated by the fundamentals of demand, supply and affordability."

"The direction of mortgage rates has been key to buyer decisions over the past two years, and decreased monthly mortgage costs are now feeding through into improved confidence amongst prospective buyers, prompting the moderate house price growth we have seen over the past few months.

"A steady improvement in affordability should allow for house price growth to gain momentum over the next couple of years. But there is still some potential for a bumpy ride. The market will remain sensitive to short-term fluctuations in the cost of debt and changes to property taxation have the potential to cause some short-term disruption."