First-time buyers overestimate the cost of London property

Ryan Bembridge

June 22, 2017

While London the priciest area of the UK some 62% of first-time buyers overestimate the cost of property in the city, a Barratt London survey has found.

The survey asked 2,000 first-time buyers planning to buy in London over the next five years the cost of homes in 12 boroughs based on description and location.

In Westminster four in five (79%) overvalued the cost of a first floor, two-bedroom apartment in Marylebone, typically guessing its value was £955,000 rather than its actual listed price of £850,000.

First-time buyers underestimate stamp duty and broker fees

And in Brent two thirds (66%) overvalued a new build open plan apartment with two bedrooms in Stonebridge, estimating it would cost an average of £418,500 when it was listed at £379,950.

A property was also overvalued by 61% in Hammersmith & Fulham.

A Barratt London spokesperson said: “A huge number of respondents clearly think that house prices in London are higher than they are which comes as no surprise in today’s property climate.

“The research also revealed that first-time buyers in London are anticipating higher property values overall, location dependant or not.”

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