Value of average London home ‘underestimated by £23,000’

LONDON homeowners are sitting on a hidden housing “goldmine” worth a total of £64 billion after the recent surge in the property market lifted prices to record highs, according to a new survey.

Research by property portal Zoopla found that London owners underestimated the value of their bricks and mortar by almost £23,000 on average.

Across the 2.8 million privately owned houses and flats in the capital that amounts to extra equity totalling £64 billion, roughly equivalent to the annual GDP of Sri Lanka.

The survey found that about two thirds of London owners do not have an accurate idea of what their properties are worth.

Prices have risen sharply during the pandemic, fuelled in part by the stamp duty holiday ordered last summer by Rishi Sunak. According to Rightmove, average asking prices across the UK rose by £7,000 in April alone to a new record high of £327,797.

Gráinne Gilmore, head of research at Zoopla, said: “Property prices have long been a hot topic at dinner tables, and this new survey makes clear that many homeowners may be in for a nice surprise if they check the current value of their home.

“The effects of the pandemic over the past 12 months have been felt in the housing market, with many households reassessing how and where they want to live.

“There is soaring buyer demand but this is not matched by homes being listed for sale.

“Homeowners considering a move could be in pole position in their local market if they offer their property for sale, and could be set to unlock hidden equity.”