Homeowners in Yorkshire undervaluing their homes by almost £40,000

Homeowners across Yorkshire have been undervaluing their homes by thousands of pounds, a new study has shown.

Friday, 23rd April 2021, 4:45 pm

The data was collected by Zoopla, as part of its Hidden Equity Survey of 2,000 UK homeowners,

It found that nearly half (43 per cent) of homeowners in Yorkshire and Humberside are undervaluing their homes by an average of £39,312.

Less than a quarter of those in the region said their home was worth less than they thought – however, the overestimate was found to be significant.

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Homeowners in Leeds have been undervaluing their homes, a study has shown.

Those that overestimated the value of their home did so by an average of £56,890.

When all the results of the survey are taken into account, the net result is that the average home in Yorkshire is worth £4,203 more than its owner realises.

A fifth of those in the region whose home was worth more than they realised said they simply couldn’t believe what their home was worth.

Across the UK, the average property was found to be worth £9,470 more than its owner realised, with the total amount of hidden equity sitting at £237bn.

Gráinne Gilmore, Head of Research at Zoopla, said: “Property prices have long been a hot topic at dinner tables up and down the country, and this new survey makes clear that many homeowners Yorkshire and Humberside may be in for a nice surprise if they check the current value of their home.

“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 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.

She added: “Homeowners keen to check up on their property's value should head to Zoopla's My Home, where they can see an estimated price for their property and check for potential hidden equity.

"For those keen to progress with a sale, they can contact an estate agent using My Home to get an expert market valuation and personalised guidance on how to best navigate this busy housing market.”