Homeowners stunned by hidden property values ​​in latest equity survey

Homeowners are undervaluing their homes by £ 236.8 billion, according to a study.

Analysis by online real estate portal Zoopla, conducted as part of its inaugural Hidden Equity survey, found that almost half of UK homeowners (45%) who had their home appraised through a real estate agent or sold it to the over the past three years have said it was worth more than they thought – averaging £ 46,305.

In contrast, only a quarter said their home was worth less than they thought, with an average of £ 44,313.

When all the survey results are factored in, the net result is that the average UK home is worth £ 9,470 more than its owner thinks. Multiplied by the 25 million private homes in the UK, this indicates UK homeowners are sitting on the £ 237 billion in hidden equity.

For many homeowners, the disparity between perceived value and an actual valuation of a real estate agent was much higher. Nine percent of homeowners whose property was worth more than expected estimated it to be worth over £ 100,000 more.

This equates to over a million properties across the country with six digits of hidden equity.

For those who continued to sell their homes and benefit from their hidden equity, the unexpected windfall had a significant impact, with 81% of them saying the extra money “improved their lifestyle.”

Owners can check My house at Zoopla.co.uk, where they can find out their home’s value through an instant online estimate based on powerful market data. They can also track their home’s price estimate and access a timeline of their home’s sales history.

My Home also allows homeowners to track the estimated value of other homes in their neighborhood, as well as homes they might want to buy in the future. Zoopla encourages homeowners to get real estate agent appraisals of their home – the most accurate way to value a property – to see if they’re sitting on more equity than they realize.

Gráinne Gilmore, head of research at Zoopla, said: “Real estate prices have long been a hot topic and this new survey clearly shows that many homeowners could have a nice surprise if they check the current value of their property. House.

“The effects of the pandemic have been felt in the housing market, with many households reassessing how and where they want to live.

“The demand from buyers is booming, but it is currently not being matched by the homes being put up for sale. Homeowners who are considering relocating might be in pole position in their local market if they offer their property for sale, and might be ready to unlock some hidden equity. “

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About Robert Valdivia

Robert Valdivia

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