Homeowners often dream of returning to their childhood neighbourhood later in life and many young adults aspire to buy in the area where they grew up.

But growing numbers of hopeful first-time buyers will find these dreams dashed as average price tags have soared faster than wage growth. In one area – Merton, London – the average property price has grown by 147 pc in the last two decades, Money Mail can reveal.

While climbing property prices are good news for those who bought a family home a couple of decades ago, it is increasingly difficult for young adults in their 20s to build a life close to their ageing parents and childhood hometown.

Price tags in 39 of the local authorities across the country have more than doubled in the last 20 years – and they’re all in England. It’s made it twice as hard for these young adults born at the turn of the millennium to buy a home compared to their parents’ generation.

For example, In Waltham Forest, in east London, property prices have soared by 140 pc on average since 2005.

That’s according to data from property portal Zoopla, which has crunched the numbers in all 376 local authorities across England, Wales and Scotland.

So where does your area rank - and will your children be able to afford a property near the family home?

LONDON AND COMMUTER TOWNS SKYROCKET

London homes are at the top the list when it comes to house price growth over the last 20 years.

But the boroughs with the highest growth are not the prime central London properties in glamorous Kensington or Westminster. Instead, it’s the south London borough of Merton that has seen the biggest price jump across the whole nation over the past two decades.

The area - home to Wimbledon and Morden - has seen property prices climb from an average of £228,600 in 2005 to £563,800 this year, a 147 pc hike.

While it’s good news for homeowners in the area, whose purchases have risen by almost 2.5 times the original cost, young adults who grew up in the borough are being priced out.

Of course, had wages kept up with house price increases, there would be little issue with such rapid growth.

However, average earnings in the area only increased by 60.3 pc from £25,648 to £41,122 between 2004 and 2024, according to the most recent 20-year period of data available from the Office for National Statistics (ONS).

A single buyer earning average wages would only be able to borrow £205,610 as banks typically lend no more than five times a buyer’s salary as a mortgage. This means they’d need to have some £358,190 in savings for their deposit.

In 2005, a buyer would only have needed £100,360 as a deposit as they would have been able to borrow £128,240.

It’s a similar story in Waltham Forest, in north east London, which takes second spot on our list. Prices here have climbed from £209,700 to £502,500 since 2005 - a leap of 140 pc. However, average wages increased by 68.53 pc from £20,906 to £35,232.

Jonathan Hopper, chief executive of Garrington Property Finders, says: ‘A lot of these areas have seen gentrification over the last 20 years. The growth rate of these areas has been in the shadow of prime central London pricing for some time.’

He says the London market makes up most of the top 20 hotspots due to a period of strong price growth following the 2008 financial crisis when investment was pumped into the capital for regeneration.

Outside London boroughs, it’s no surprise commuter belt towns have soared in price. The surging London house prices have spread into neighbouring towns in Surrey as people move out of the capital in search of more space.

Spelthorne in Surrey has seen the biggest price surge outside the capital with the average house price soaring from £206,800 in 2005 to £439,100 this year – a 112 pc increase.

The area is just south of Heathrow Airport, a little over an hour’s drive from central London so the area has seen Londoners spill over into the Surrey district as they become priced out of the capital.

John Walton, owner of Milestone Residential estate agency in Ashford, Spelthorne, opened a branch in the area five years ago to cater for an influx into the neighbourhood.

‘Part of Spelthorne’s attraction is its value for money,’ he says. ‘We have another office in Richmond and a lot of people are moving out and moving into Spelthorne to get more value.

‘The schools are good and transport is also great as the M3, M4 and M25 are close by.’

But the attraction has come at a price for the children of Spelthorne’s families.

‘The younger generation can’t afford to buy here so are moving out,’ Mr Walton says. ‘I have seen a lot of people moving to Camberley, 20 miles down the road. You get more for your money.’

Young adults who grew up in the area and want to put down roots will have to pay some 112 pc more than what their parents did.

Homes in the area next door - Runnymede – have seen the next largest price growth, rising from £227,200 to £478,900 – an increase of £251,700, or 111 pc.

Runnymede is home to university Royal Holloway in Egham and visitor attraction Thorpe Park. A 40-minute train journey to central London, it’s easy to see why homes in Egham have soared in value.

It’s similar in the Epsom and Ewell district, just west of Sutton, where average property prices have climbed from £259,600 to £546,400 in two decades, a 110 pc rise.

WEST COUNTRY SOARS

Outside London and the commuter belt, it’s the West Country where the next generation may struggle to buy near their family home.

South Gloucestershire homes climbed by 103 pc from £171,200 to £348,300 over the past two decades.

Price tags in neighbouring Bristol have risen from £167,200 to £336,800, some 101 pc.

The soaring prices are driven by the race for space following the pandemic.

Mr Hopper says: ‘There was a time where moving out of London was living 30 minutes away - now it actually means moving out of London. South Gloucestershire includes a lot of Cotswolds locations, which were the star performers of the property market in the pandemic.

‘Bristol has been doing really well for a number of years. It’s had a lot of businesses move into the area and open a south west office. Job opportunities have increased in this area.

‘It used to seem a long way from London but as a regional hub it has come into its own over the last decade. And since the pandemic, many workers no longer need to be in the office five days a week.’

SOUTH COAST OUT OF REACH

The race for space has also pushed up price tags along the scenic south east coast, where demand rocketed after the Covid lockdowns.

Lewes, in Sussex, is just a 20-minute drive to the coast, but only an hour by train to London Victoria – ideal for those who need to pop to the capital for meetings and office days.

Buyers are now paying £397,000 on average to live here compared to just £198,400 in 2005 - double the price.

Robin Smith, sales manager at Oakfield Letting and Estate Agent has been working in the town’s property sector for 20 years. He says the popularity comes from its proximity to the coast and low crime levels.

‘I have seen the change in price,’ he says, ‘But the types of buyers haven’t really changed - we have those who already live here plus incomers from London and Brighton.

‘Since Covid the main change has been people are no longer looking for access to a train station - they ask for space to work from home. Prices are high here but it tends to attract the people who can afford it.’

The hike in price tags mean locals are forced into the lower end of the price bracket.

‘Your average three-bedroom former council house is £400,000,’ adds Mr Smith. ‘We tend to get key workers such as nurses and firefighters buying at the lower end of the market.’

But locals have less purchasing power than they had two decades ago. Wages have increased by just 50.33 pc during that time from £19,932 to £29,964, according to ONS data.

This means a single buyer with average earnings would only be able to borrow £149,820 – or five times their annual salary. This means to buy an average house in Lewes, they’d need a whopping £247,180 in savings to use as a deposit.

Arun, a 50-minute drive west along the coast, has also seen price tags double in the last two decades.

Properties in the region - home to seaside resort Bognor Regis and market town Arundel - have surged from £169,900 to £339,000 over 20 years.

Young adults who want to buy a property near their childhood home in the nearby district of Adur, will also be stretched. Prices in the area - which contains picturesque Shoreham-by-Sea - have increased by 99 per cent since 2005, a rise to £373,800 from £187,400.

Richard Donnell, executive director of Zoopla, says: ‘The challenge is that the market only really works for buyers in southern England if they have equity - large savings or lots of embedded equity in their home.’

... AND WHERE IT’S EASIER TO BUY

Are you from the north east of England and keen to buy a home there? If so, you’re in luck as it’s home to the majority of the top ten places with the lowest house price growth over the past 20 years.

While this isn’t great news for homeowners who haven’t moved during that time, it’s great for prospective first-time buyers local to the region.

County Durham has seen the lowest house price growth of any local authority in England, Wales and Scotland over the last 20 years at just 22 pc as price tags rose from £108,400 to just £131,900.

Darlington homes increased from £121,300 to £148,000, also a 22 pc rise.

However, average wages in the area soared by 81.69 pc from £17,941 to £32,597, which means they outpaced house price growth and purchasing power grew for locals.

Buyers earning average wages are now able to borrow £162,985, which is more than the average cost of a home in the area. First-time buyers usually need to stump up 10 pc of the property value as a deposit, which would be £14,800.

Sunderland house prices also rose 22 pc from £101,600 to £124,000.

Mr Hopper explains: ‘Historically there’s been a lack of wage growth, high rates of unemployment and a lack of infrastructure projects which have made these areas detached from other parts of the market.’

But as stretched buyers search for an affordable place to live, the north of England is becoming an increasingly attractive option.

Mr Hopper says: ‘Over the last three to five years, the north east has seen spectacular growth, partly as a result of the pandemic but also because of affordability.

‘Tenants are checking out of the rental market as they can buy and spend £200 less a month on their mortgage than they were paying on rent.’

Monthly mortgage repayments for a typical first-time buyer property with a 30-year term and a 4.5 pc interest rate are £567 in the north east. Average rental payments are £748, says Zoopla, a 32 pc hike.