This would mean that by 2030, around one in every 20 (5.1%) homes in the UK is worth £1m-plus, according to Santander Mortgages.
One in every four (25%) properties in London is expected to be worth £1m-plus by 2030. In the London boroughs of Kensington and Chelsea and Westminster, more than 70% of homes are expected to have a value of at least £1m by 2030.
The report, compiled by a professor at the London School of Economics (LSE) for Santander, predicts the gap between the housing haves who already own large homes, and the have nots struggling to get on the housing ladder will widen, as the “unthinkable” £1m price tag is attached to more modest properties.
Paul Cheshire, LSE professor of economic geography and the author of the report, said: “By 2030 the divide between housing haves at the top and the have nots at the bottom will be even wider than it is now.
“More owners will enjoy millionaire status, as homes that many would consider modest fetch seven figure prices in the most sought-after areas.
“Property price inflation is beneficial for existing owners who will see their net wealth increase, but it will make entering the market more difficult still for new buyers.”
The report used official house price figures and considered past patterns in real incomes, population changes, housing construction and interest rates to make the predictions.
Outlining the impact of the predictions, the report said: “If house prices rise faster than real incomes – as they persistently have over the past 50 years – then the quality of housing buyers can afford also falls.
“New home owners have to make do with smaller houses in less convenient locations – maybe further from their jobs, friends, and family and a good local school, meaning the need to compromise increases.”