Homeowners in London are growing increasingly out of touch with how much their properties are worth, according to new figures by Quick Move Now.
Homeowners in England in 2023 overestimated the value of their property by an average of 12%, which has risen to 14%.
By region, homeowners in North East England overestimated the value of their properties by far the most at 24%, followed by North West England at 19%.
Homeowners in the West Midlands overestimated the value of their properties the least at 11%.
Flat owners overestimated the value of their property the most of any property type at 21%, whereas owners of detached houses overvalued by the least at 13%.
Danny Luke, Quick Move Now’s managing director, said: “The property market has been quite uncertain over the last few years, so it’s little surprise that homeowners are misaligned with professional estate agent valuations.
“The level of difference may shock some people, however.
This shows the importance of making the most of your estate agent’s local property market knowledge when putting together a pricing strategy for the rest of your property.”
According to the Office for National Statistics, the average Greater London property price is currently £567,000.
Overestimating by 14% would have homeowners estimating the value to sit at almost £650,000 – an overpricing of about £80,000.
Catherine*, a young prospective buyer in London, claimed she was misled by estate agents.
She said: “I have been looking to sell my first property, a flat, for over a year.
“I have been surprised and deeply frustrated by how long it has take me to do so and I think one of the key issues has been its valuation.
“I had assumed it would grow in value since I bought it in 2020, but the volatility of the market has meant this hasn’t been the case.
“I was also given a significantly inflated valuation by a couple of estate agents, which gave me a false sense of what I could realistically achieve in a sale.
“I have had to reduce the price at least four times and it still has not sold.”
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