UK homeowners collectively undervalue their homes by £237bn, according to analysis from Zoopla.
Almost half (45%) of UK homeowners who had their home valued via an estate agent or had sold it in the past three years found the property to be worth more than they expected, by £46,305 on average.
In contrast, just a quarter said their home had turned out to be worth less than they thought, by an average of £44,313.
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The net result was that homeowners in the UK undervalue their homes by £9,470 on average.
An estimated 9% of homeowners whose property was worth more than they expected found that it was worth over £100,000 more, with 40% of these individuals located in London and the South East.
This equates to more than one million properties nationwide carrying six figures of hidden equity.
Looking at London in more detail, 35% of homeowners found their property to be worth more than they expected, by an average of £117,000.
When all of the survey results are taken into consideration, the average London property is worth £22,846 more than expected – more than double the national average.
Andy Marshall, chief commercial officer at Zoopla, said: “The pandemic and subsequent lockdowns have led to a once-in-a-lifetime reassessment from homeowners about how and where they want to live.
“This, coupled with the stamp duty holiday and the search for space, has led to a buoyant market; however, it’s clear this soaring buyer demand is not currently being matched by the supply of homes being listed for sale.
“This is why Zoopla has launched My Home, to encourage homeowners to check the estimated value for their property and consider selling their home to unlock hidden equity, which will, in turn, stimulate the market.
“For those keen to progress with a sale, they can contact an estate agent directly using My Home to make contact with an agent for an expert market valuation and personalised guidance on how to best navigate this busy housing market.”
