There are now less than 24 areas of the UK property market where parents could have covered the cost of their child thanks to the house price appreciation seen on their property, latest research from Benham and Reeves reveals.
The London estate and letting agent looked at the cost of raising a child from birth to the age of five, before comparing this cost to the level of house price appreciation seen across the UK property market over the last five years.
Parenthood and a property purchase, neither come cheap and for some, it can be a case of one or the other.
And research from investment platform Moneyfarm shows that the cost of having a child starts at £4,071 during pregnancy and climbs to a total of £75,113 by the time the child celebrates its fifth birthday.
BEST INVESTMENT
But whilst our children are often the best investment we ever make, property isn’t far behind.
Over the last five years, the average UK house price has climbed by 24.8% – an increase of £57,611.
However, further analysis by Benham and Reeves has shown that in no less than 24 areas of the UK property market, house prices over the last five years have climbed in excess of the £75,113 required to raise a child to the age of five – and by as much as £120,645 in some areas.
AVERAGE HOUSE PRICE
The current average house price in the Cotswold’s is £503,865 – up £120,645 from five years ago. The London Borough of Brent has seen house prices climb by £109,690 in the last five years, whilst the average property value is up £97,269 across Bath and North East Somerset.
Other areas where house prices have climbed by enough to cover the cost of raising a child include Richmond, Tunbridge Wells, Tewkesbury, Trafford, Waverley, South Oxfordshire, Epsom and Ewell, Redbridge, Tandridge, St Albans, Cherwell, Mole Valley, Salford, Windsor and Maidenhead, West Devon, Solihull, East Renfrewshire, Cheltenham, South Staffordshire, Bristol and Harrow.
A further 19 locations have seen house price growth of between £70,000 and £74,849 – enough to make a serious dent in the cost of raising a child.
LIFE MILESTONES
Marc von Grundherr, Director of Benham and Reeves, says: “Homeownership and parenthood are two life milestones that are often intrinsically linked and the arrival of a child can spur the decision to either buy or upsize in order to provide a firm foundation on which to build a family.
“Of course, both come at a sizable cost and, for some, the decision to have a child can mean abandoning dreams of a larger home at that point in life.
“Whilst there’s no doubt that parenthood is a very worthwhile investment, it can certainly pay to push as hard as possible to also realise your dream of homeownership because, as our research shows, the consistently strong performance of the UK property market can, in some cases, cover the cost of raising a child.”
