House prices will more than double during the next two decades, according to a report to be published later this month.
The market will be slow for months
The Centre for Economics and Business Research (CEBR) study says homeowners are assured a substantial second income from the value of their properties.
The housing market would slow "appreciably" in the next few months, managing director Mark Pragnell said.
"But because we fail to build houses fast enough to meet rising demand, we can expect a return to relatively high rates of house price inflation when consumers' confidence and the economy picks up again."
It makes every sense for homeowners to make best use of their valuable asset
House prices are falling in some areas, including London and the south-east of England.
The CEBR said the average homeowner today has an outstanding mortgage of £55,000 on
a property worth £114,500, meaning their mortgage is worth around 48% of their
But by 2020, the average home will have risen in value to £279,900 and the average outstanding mortgage will have increased much more slowly to only
£99,000 or 35% of the property's value.
So the average homeowner will be able to receive an annual income of about 7% of average earnings - or a lump sum equivalent to a year's wages - simply by remortgaging, the report suggested.
CEBR said this meant the average homeowner could unlock £35,000 from their
home, the equivalent of a year's average earnings in 2020, and still have an
outstanding mortgage of less than 48% of their home's value.
Mr Pragnell said:
"It makes every sense for homeowners to make best use of their valuable asset
through remortgaging and other financial products that allow them to unlock