MANY UK HOMEOWNERS UNAWARE OF HOW MUCH THEIR PROPERTY IS WORTH
According to the latest industry research, the average UK homeowner may be too optimistic when it comes to the value of their property.
The findings are the result of a survey conducted by Aviva, which asked a random sample of more than 2300 homeowners of various ages and locations to value their homes before comparing the data against official Government figures.
The majority of respondents to the study valued their property above its actual value, producing an average UK house price of £288.263, which is significantly higher than the latest Government average of £235,673 which related to prices recorded in May 2020.
This tendency to over-value appears to be true of almost all UK regions
Respondents were also asked about the impact of the Covid-19 outbreak on their own properties. Many homeowners had a positive outlook regarding the value of their property, with nine per cent believing that their property has actually increased in value since the outbreak and almost half (48 per cent) thinking the value has stayed the same.
This is believed to be due to home renovations, given that 85 per cent of UK residents have undertaken some form of home improvement during the lockdown.
Gareth Hemming, MD, Personal Lines, Global General Insurance for Aviva, says: “While some people may be quite accurate in their property estimates, the fact that the numbers overall are so much higher than official figures, suggests that some people may be unaware of current house values – or are valuing their own homes through an optimistic lens.
“However, we have seen evidence that house prices are beginning to creep back upwards and would-be homeowners are certainly not deterred, so we must hope that the gap between aspiration and reality starts to narrow as the UK gets back to business and the housing market picks up.”