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  • Brits set to be hit with an increase of up to 300% on personal expenditure

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Brits set to be hit with an increase of up to 300% on personal expenditure

hannah-maundrell
Written by Hannah Maundrell, Former Editor in Chief

14 February 2018

We've predicted our future finances by analysing ONS data from the past 80 years to make a forecast for the next 10 years, taking into consideration inflation and rising expenses.

You can explore the full future forecasts here

We've carried out an in-depth study using 80+ years of government data to predict the cost of weddings, divorces, housing and pensions for the next 10 years.

  • The average house price in the UK is set to increase by 100% over a 25-year period

  • The average price of rent is set to rise by 24% from £813 in 2011 to £1,016 by 2028

  • The average price of a wedding is set to increase by a whopping 60%

  • The average price of a divorce sees the biggest increase at over 300% from 2003-2028

  • The average UK weekly income for Pensioners is set to increase 115% from £223 to £479 in 2028

Average house to increase by 20% to £255,292

We've estimated the number of Brits buying a home in 2028 will decrease. In 2017, we estimate that 14.6 million people in the UK owned a home. However, in the next 10 years, this is looking to drop to 14.4 million. With the average cost of buying a home set to increase by 20% in the next decade, from £208,318 in 2017 to £255,292 in 2028, unachievable deposits could be forcing people to privately rent. In 2003, the average house was £127,246 - meaning house prices have already seen a 100% increase in just over 25 years by the year 2028.

The average price of rent set to increase by 10% by 2028

Our research reveals house prices will go up by 20% and average monthly rent across the UK is set to increase by only 10%, from £925 to £1,017. Could this mean that the UK property market will become more geared towards renting rather than buying?

The average cost of a wedding to hit £32,064 by 2028 with divorce costing double

On average, Brits are saving £105 a month to put towards their wedding - which means it takes around 10 years for the average couple to save for a wedding costing £25,000 (£25,090 being the national average). By 2028, the tool predicts a 17% increase in the total cost of getting married to a huge £29,838. This is almost £3,000 more than the average current UK salary of £27,500 in 2017. Analysing the earliest possible data set, the tool reveals an overall increase in wedding costs of just under 60% in 22 years between 2006 and 2028 from £18,773 to £29,838 indicating a possible factor in the decline of nuptials also seen.

The cost of a divorce will see the biggest increase according to our financial forecast, with the average cost expected to increase by a huge 25%, from £47,014 to £60,415.85 in 2028.

When considering the earliest recorded data from 2003, divorce costs have seen a astronomical increase of 360% between 2003 and 2028 from £13,050 to £60,415.85

In 10 years, our pensions will exceed the current average monthly wage

In 2017, the average yearly salary was £27,500, which equates to £1,837 a month. By 2028, the average pension is expected to exceed the average monthly take home and reach £1,916 a month.

Between 1995 and 2016, weekly pension income increased 1.7 times, from £223 per week to £386. However, between 2016 and 2028, pension income will only increase 1.2 times, to £479 a week (£1,916 a month), equating to a 22% increase in pensions by 2028. (* This is based on average payment to pensioner household receiving state benefits, including but not limited to Pension Credit and State Pension)

Between 1995 and 2028 pensions are set to increase by 115% from £223 per week to £479 by 2028.

The cost of our major life events like buying a house and getting married are rising but wages are not keeping up. More than ever before people need to make their finances a priority. Our predictions can give people a good indication of how much these life events are going to cost and the amount they need to save for their dream futures.

It's no surprise the UK is adopting a renting culture as house prices are quickly outstripping what people can realistically afford. It's really hard to save a deposit while you rent. If buying a property is on your bucket list, you need to seriously work out how you are going to achieve it. Getting a handle on your outgoings and incomings is the first step to budgeting for your life. It sounds daunting to budget for life events that feel so far away. However, with prices evidently on the rise it will take you far longer to save up to achieve your life goals.

The figures we've predicted are based on trends in government data. We expect certain external events may have a large impact on future finances, such as large political milestones like Brexit or wage freezes in the public sector. " - Hannah Maundrell, Editor in Chief of money.co.uk

To find out how we've worked out these predictions click here

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