Bournemouth homeowners undervalue property by £60k

Bournemouth homeowners have been undervaluing their homes by an average of £61,666, according to Zoopla who have revealed the town's 'hidden equity'.

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

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 Bournemouth homeowners’ estimations of the value of their homes really are.

It found that 42 per-cent of local homeowners have an accurate idea of the estimated value of their home.

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Average Bournemouth home worth over £60,000 more than owners realise

The findings from Zoopla show that over half of Bournemouth homeowners (53 per-cent) 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 £61,666. 

Julian Hewlett, Sales Director at leading Bournemouth estate agency Lovett International, said: “Property prices are often top of the agenda when it comes to conversations about our homes, but this survey shows that we’re perhaps not as clued up on prices as we should be.

"Property in Bournemouth is booming at the moment, fuelled in part by the town’s beautiful coastal location, miles of stunning sand and a town centre boasting fantastic shops and restaurants.

“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 Bournemouth 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, more than a third (39per-cent) of Bournemouth homeowners attributed their good financial fortune to redecorating their property, adding a new kitchen, building an extension or doing work to their garden. 

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The impact of home improvements is something mirrored across the South West. The most popular reasons being given by homeowners in the region for their financial uplift included redecorating (37per-cent), getting a new bathroom (27per-cent) and fitting a new kitchen (24per-cent). 

Career opportunities

The practicalities of improving a property aren’t the only reasons for homeowners in the town to get more for their home than they thought it was worth.

Bournemouth’s strong jobs market has also helped to add value to the properties of local homeowners, with better job prospects improving buyer affordability (17per-cent), in turn pushing up property prices. 

The good life 

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

Two fifths  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.). 

At a regional level, 15 per-cent of homeowners in the South West used their extra cash to buy a new car and a further one in ten used the money to pay for private medical treatment for a loved one. 

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 Bournemouth is now £298,500, with prices rising by 3.6 per-cent in the last 12 months.

The data also shows prices in Bournemouth have increased cumulatively by 17.4 per-cent in the past five years. 

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 Bournemouth 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 Bournemouth is currently at 3.6% annually.

“Bournemouth 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."