A fifth of Bristol homeowners undervalue their homes by almost £30,000, reveals Zoopla
New analysis by Zoopla, conducted as part of its inaugural Hidden Equity Survey, has found that:
● A fifth of Bristol homeowners undervalue their home by an average of £29,285
● Half of homeowners in the city have lost touch with the value of their home
● Two-fifths of homeowners unlocked their ‘hidden equity’ to move to a nicer property
The Hidden Equity Survey of 2,000 homeowners* who have had their home valued by an estate agent in the past three years establishes for the first time how accurate Bristol homeowners’ estimations of the value of their homes really are, with just 50% having an accurate idea of the estimated value of their home and 21% saying it was worth more than they thought it was – on average by £29,285.
When asked for their thoughts on why their homes were worth more than expected, 18% attributed this to redecorating their property, adding a new kitchen or building an extension.
The impact of home improvements is something mirrored across the South West. The most popular reasons being given by homeowners in the region for their financial uplift included redecorating (37%), getting a new bathroom (27%) and fitting a new kitchen (24%).
Bristol’s excellent schools, transport links and job prospects have also helped to add value to the properties of local homeowners, with 25% of homeowners citing desirability of the area for homes being worth more than their owners expected.
For Bristol homeowners who went on to sell their home, 64% said the additional money ‘improved their lifestyle’; and 42% said they were able to move into a better property than expected (eg, it had more bedrooms, was in a nicer area, had a garden etc…).
Gráinne Gilmore, head of research at Zoopla, comments: “Buyer demand has soared, racing ahead of supply, putting upwards pressure on prices. House price growth in Bristol is currently at 3.8%.
“Bristol homeowners keen to check up on their property’s value should head to Zoopla’s My Home, where they can see an estimated value range for their property and check for potential hidden equity.
“For those keen to progress with a sale and perhaps unlock hidden equity, 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.”
*Research conducted by Opinium between 1-14 April 2021 among 2,000 homeowners and also conducted by Zoopla among 77 homeowners in Bristol in April 2021.