The value of your Sheffield home might be £46,000 more than you thought
Almost half of all homeowners are underestimating the value of their home by £46,000, a survey says.
It reveals 45% of homeowners underestimated the value of their property by an average of £46,305, meaning there is an estimated £237bn worth of ‘hidden equity’ in the UK property market.
The figures from Zoopla estimate there are currently one million properties in the UK with at least six figures of hidden equity and did not surprise Tom Field, property consultant at Redbrik.
He said: "The dynamics of how we use a house have changed. We need a defined space, somewhere to live, somewhere to work.”
This changed due to the pandemic and extended periods of home working have altered what homeowners and buyers are looking for in properties with around 23% of individuals surveyed now requiring dedicated office space. If you’ve got this, you could be quids in.
"Sellers can be surprised what their home is worth, so it’s important to get an up-to-date appraisal,” said Tom.
“Buyers are recognising how fastpaced the property market is. We’re getting some homes with 25 viewings booked in the first 24 hours of being on the market and are doing deals in 10-14 days, with multiple people bidding.
"The valuations we give surprise sellers on what people are prepared to pay and it shows no sign of easing up.”
Tom added the highest prices continue to be in the South West of Sheffield due to its popular schools, access to great parks and being on the doorstep of the Peak District.
"There’s something there for everybody and it is the race for space,” Tom added. “People are moving out of bigger built-up areas and want outside space, access to parks and walks.”
He urged people thinking of selling to get a valuation now as even one done just 12 months ago will be out of date. This is because demand surged in lockdown and has continued as restrictions have eased.
“Last month we were getting 11 views per property – it was half that prior to the pandemic,” said Tom.
"Maybe if distractions like holidays take over it will change, but a lack of supply is continuing to drive prices and it will be a good 12-18 months before we see changes.”
From the percentage of homeowners who undervalued their property, 9% underestimated their home by over £100,000.
The Zoopla survey also showed 50% of homeowners are currently living in unsuitable properties, adding to the growing demand for property, which in turn fuels the price.
More than £3,000 was added to the value of the average property in May, making it a record month, according to the Halifax House Price Index, which showed house prices rose by 1.3%.
Those figures came after the Nationwide House Price Index showed prices went up 1.8% month-on-month in May, following a 2.3% rise in April. It means annual house price growth has risen to 10.9% - the highest level in nearly seven years.
To get a valuation from Redbrik call 01246 563 060.