Brits are clueless when it comes to estimating house prices

Michael Lloyd

December 2, 2019

Brits have little knowledge of house prices around the country whether in their region or not, property buyer Good Move has found.

When asked to estimate the average property value in majority cities, Brits were least aware of house prices in London. Here the average guess was more than £160,000 less than the actual figure of £472,000.

Ross Counsell, director at Good Move, said: “With so much uncertainty around Brexit, it’s perhaps unsurprising that many Brits overestimate its effect on UK house prices.

“While house price growth has been slowing, it appears Brexit hasn’t had the scale of impact that many believe or assume that it has.

“Our research has highlighted that many Brits are unaware of house prices in their area too.

“It is a good idea to keep tabs on local property values, so you are well-informed if you ever decide to move house.”

Brits are also unaware of how cheaply properties sell for in Glasgow, Belfast and Nottingham, with the average estimates being over £60,000 higher than reality.

House prices have increased, albeit slower than in previous periods, in every major UK city since the EU Referendum in June 2016, with an average growth of over £20,000.

However, Brits are largely unaware of this trend. Three-quarters (74%) underestimate this rise in house prices, with nearly a third (32%) believing that house prices have actually fallen in their area since the vote.

More than one in eight (13%) think that they have decreased by over £10,000.

Across the country, most Brits overestimate how hard Brexit has hit their city’s house prices.

In 14 of the 15 cities studied, residents believe that their local house prices have increased by less than they actually have.

Only Londoners overestimate the rise in their local property prices, believing that they have increased by nearly £12,000 since 2016, when in fact they have only grown by £4,600.

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