People in the UK are generally unaware of how much houses cost across the UK, including in their own city, according to new research.
A survey of 2,000 people by Good Move tested Brits’ knowledge of the average property value in major UK cities, and we didn’t do well.
Respondents assumed that houses in London cost an average of £160,000 less than they do. The actual figure is £472,000. Meanwhile, the average guess of how much properties sell for in Glasgow, Belfast and Nottingham was more than £60,000 higher than reality.
Brits were also particularly bad at estimating local property values. Around 60% of cities fared worse than the national average when it came to guessing regional house prices.
Ross Counsell, director at Good Move, attributed Brexit uncertainty as one of the reasons people overestimated house prices. He said: “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.”
When respondents were asked to estimate how much they thought UK house prices had changed since the EU referendum, Brits were largely unaware that house prices have actually increased in every major UK city, with an average growth of more than £20,000.
Planning For Self Build
Why is it useful to be aware of house prices? If you’re planning on moving home, or looking into a self build or renovation project, it is a good idea to be well-informed about the cost of an area you may be moving to or building a home in.
The cost of renovating a house (or building your own from scratch) will vary up and down the country, so it pays to understand the ceiling values in your chosen area to ensure your project makes financial sense.
According to figures via Good Move, the UK cities which Brits are least knowledgeable about house prices are:
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