Findings published as part of Legal and General’s Home Truths report found that the cost of renting was set to rise at a similar pace, from £7,500 in 2015 to around £12,000 a year in 2030.
The study, which looks at the future of UK households, revealed that the annual cost of home ownership is set to reach £15,300 in 2015, but will climb to a costly £23,120 by 2030.
Jeremy Duncombe, director, Legal and General Mortgage Club, said the impact of upcoming interest rate increases and an expected rise in repair and maintenance costs were set to bump up the cost of homeownership in the near future.
“Streamlined Stamp Duty, low inflation and rock bottom interest rates have produced an exceedingly favourable market for homeowners; however, our research suggests that this trend is unlikely to last,” he said.
“The cost of homeownership is set to climb in the coming years in response to imminent interest rate rises, and a projected increase in repair and maintenance costs. This increased expenditure is likely to have an effect on household budgets, and it is therefore important that people factor this into their finances so that they are able to cope when costs increase.”