Reading homeowners undervalue property by £42k

Two-fifths of Reading homeowners undervalue their house by £42k, according to Zoopla.

Reading homeowners have been undervaluing their homes by an average of £42,500, according to Zoopla who have revealed the town's 'hidden equity'.

The latest analysis from Zoopla reveals that two-fifths of homeowners in Reading have lost touch with the true value of their home.

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Whilst another two-fifths managed to release the 'hidden equity' in their home to move up the property ladder. 

The hidden equity survey by Zoopla looked at 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 Reading homeowners’ estimations of the value of their homes really are.

It found that 36 per cent of local homeowners have an accurate idea of the estimated value of their home.

Average Reading home worth nearly £42,500 more than owners realise

The findings from Zoopla show that two-fifths of Reading homeowners (40%) who had their home valued via an estate agent or sold it in the past three years said it was worth more than they thought it was – on average by £42,500.

Mark Wright, Regional Residential Sales Director at leading Reading estate agency Romans, said: “Property prices are often top of the agenda when it comes to conversations about our homes, but this survey shows that homeowners are perhaps not as clued up on prices as they should be.

"As an estate agent, there’s nothing better than giving a homeowner the good news that their property is worth more than they expected and with demand for homes in the town outstripping supply, I’d encourage anyone in Reading who’s considering their next move to have their property valued. Their dream move, and a big change in lifestyle, could be much closer than they think.”

Changing rooms 

When asked for their thoughts on why their homes were worth more than expected, Reading homeowners attributed their good financial fortune to redecorating their property (16%) and adding a new kitchen (8%).

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Home improvements is something mirrored across the South East. The most popular reasons being given by homeowners in the region for their financial uplift included redecorating (43%), fitting a new kitchen (29%) and getting a new bathroom (29%). 

House prices rising 

Zoopla has also revealed the latest House Price Index, which studies multiple local housing trends and prices on an annual basis. The data shows that the average house price in Reading is now £368,900, with prices rising by 2% in the last 12 months. The data also shows prices in Reading have increased cumulatively by 4.7% in the past five years. 

The good life 

For Reading homeowners who went on to sell their home and benefit from their hidden equity, the financial boost had a significant impact, with two thirds (64%) of homeowners saying the additional money ‘improved their lifestyle’.

Almost half (44%) said they were able to move into a better property than they expected as a result (for example, it had more bedrooms, was in a nicer area, had a garden etc.). 

Gráinne Gilmore, Head of Research at Zoopla, said: "The direction of house prices has long been a staple of conversation around dinner tables up and down the country and many Reading homeowners could be in for a lovely surprise if they have their property valued, according to our research.  

“Because of the impact of the pandemic, many households are re-evaluating how they want to live and this has had an impact on the local housing market. Buyer demand has soared, racing ahead of supply, putting upwards pressure on prices. House price growth in Reading is currently at 2% annually.

“Reading 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.”