Media reports of housing bubbles and rising property prices in the last six months are behind the reason why 80% of sellers believe their homes are worth more than they are, according to estate agents.
Research conducted by Move with Us among its network of independent estate agents in the UK found that, despite recent media reports, agent opinion is they haven’t seen a housing bubble in six key regions across the UK. The survey* also uncovered the majority of estate agents in the North East, North West, Yorkshire and Humber, Wales, East Anglia and the South West have not witnessed any signs of uncontrollable price hikes over the last 12 months.
Estate agents’ opinions in Scotland, the East Midlands and the West Midlands were split as to whether or not this economic phenomenon exists in their particular area. Estate agents in Scotland were split 50/50 on the subject of a housing bubble. In the East Midlands 57% of agents have reported that they have seen a housing bubble with this stat slightly higher in the West Midlands at 58%.
The only regions where agents were in firm agreement there has been a housing bubble were Greater London and the South East where 92% and 74% of agents reported significant price increases when compared to the same period last year.
Robin King, director at Move with Us, said: “Whilst increased confidence in the property market is really positive news, reports of a housing bubble may be pushing home owners to set unrealistic asking prices. Putting a property on market with an accurate valuation is paramount.”
“Our advice to home owners is not to always believe the hype and to listen to their local property expert, the estate agent. If a property is listed for sale too low, it’ll sell but the vendor will lose money. If it’s priced too highly it will not generate much interest and will probably need a price reduction at a later date. This is precisely why we go to such great lengths to correctly value property using comprehensive data and in-depth comparisons of homes that are both sold and currently being marketed in the local area.”