It has been reported that almost half of homeowners are undervaluing their homes, including some cases where the properties were worth nearly £50,000 more than they realised.
Zoopla reports that only three in ten people have an accurate idea of how much their home is worth, with 45% undervaluing and 25% overvaluing.*
Nearly one in ten homeowners whose property was worth more than expected found that it was valued at over £100,000 more, with 40% located in the London and South East regions.
This means that more than one million UK properties could be hiding six figures of hidden equity – unbeknown to the owners.
What does it look like in London?
35% of London homeowners have found their property to be worth more than expected, by an average of £117,000.
Whilst 37% said their home was worth less than they thought, by an average of £49,000.
In light of all the findings, a property in London is worth on average £22,846 more than anticipated, which is more than double the £9,470 national average.
What benefits are there for homeowners?
It is reported that the benefits from hidden equity have meant:
- 81% could improve their lifestyle
- 50% were able to move to a better property
- 18% between 55-64 were able to retire sooner than expected
- 13% could upgrade their car
- 13% went on more holidays
- 8% were able to help get family and children on the property ladder
Seven out of ten homeowners would have made different financial decisions if they had been aware of their hidden equity.
What could this mean for you?
You may be in for a surprise if you check the current value of your home.
There are huge benefits to knowing how much your home is worth, particularly if you’re thinking of selling, as the value could influence the type of property or location you move to.
Gráinne Gilmore, head of research at Zoopla, explained: "the effects of the pandemic over the last 12 months have been felt in the housing market, with many households reassessing how and where they want to live.
"There is soaring buyer demand but this is not currently being matched by homes being listed for sale. Homeowners considering a move could be in pole position in their local market if they offer their property for sale, and could be set to unlock hidden equity."
If you’re looking to sell your property or would like to get your property valued, please contact us today.
*Zoopla’s Hidden Equity Survey is based on research among 2,000 UK homeowners who have had their home valued by an estate agent in the past three years.