The Great British Property Gamble

With the housing market in its most volatile state since the early 90s, 1 in 4 homebuyers (26 per cent) unduly take a huge financial gamble by not bothering to do any comparative research on the current value of homes before putting in an offer. Despite 90 per cent of homeowners saying their home was the biggest purchase of their life, 71 per cent admit they do not even check a property's previous sale price before signing on the dotted line - potentially risking thousands of pounds in overpayment.

Zoopla, the UK's first online property community that combines home valuation tools, sold price information and user-generated content to bring transparency to the property market, questioned over 1,000 homeowners to find out how informed people are when it comes to buying, selling and tracking their properties.

The survey found that more people carry out research on the price of blenders and toasters, cars and furniture than they do on their prospective home with 92 per cent saying they check the price of household appliances before purchase. 85 per cent say they compare the value of cars before buying them, and 78 per cent do the same for furniture, whereas only 42 per cent of people say they thoroughly research house prices before making a purchase.

Despite ubiquitous internet access throughout the UK, over half (51 per cent) say they do not use the web to check property prices with a staggering 40 per cent unaware that previous sold prices, what the neighbours paid and current values are free and easily accessible online.

One in three (29 per cent) also admitted they did no research into the local area before moving in, with only one in ten (10 per cent) saying they asked a neighbour what the community was like before committing to purchase, suggesting that buyers are moving blindly and with only a basic understanding of their new community. 41 per cent said their lack of research resulted in their housing honeymoon only lasting one week.

The top five areas that homeowners end up regretting not doing their homework on are:

1. Parking

2. Neighbours

3. Traffic congestion

4. True value of their home

5. Local amenities (including schools, doctors, etc)

And it is not just buyers who are 'in the dark'; despite 63 per cent of homeowners saying their property is their pension, less than one in ten (9 per cent) could give an accurate current valuation of their home. In fact, UK homeowners admit to tracking their savings accounts and share portfolios more frequently than the value of their home, with over half (51 per cent) rarely or never monitoring their home's value.

The lack of available properties on the market was also shown to be a big concern with nearly half (43 per cent) of homeowners wishing they could make an offer on a home not currently on the market and a quarter (24 per cent) experiencing 'neighbour-envy', wishing they owned someone else's home instead of their own.

Alex Chesterman, founder and CEO of Zoopla comments:

"UK homeowners are desperately uninformed when it comes to dealing in the residential property market. For most of us, buying a property is one of the biggest decisions and payments we'll ever make, so taking the right time and effort researching the market is vital. With the average UK home currently valued by Zoopla at £228,649 overpaying by 10 per cent can result in a £20,000+ gamble so it's well worth doing research into the prices paid by neighbours, current values and local trends before making an offer or setting a selling price."

Regionally, East Anglia is home to the fastest bidders in the UK, with 68 per cent of homebuyers making offers within 24 hours of the first viewing. Scots are tied with those in the North West as the slowest, with only 43 per cent putting in an offer over the same time.

Wales has the highest level of neighbourhood house-envy, with 35 per cent saying that they wish they owned a neighbour's property instead of their own. This contrasted with house-proud Scots, who had the lowest levels of only 8 per cent.

Chesterman continues: "Historically, carrying out the necessary research was a lengthy process, but this is no longer the case. Zoopla has created a unique database of every home in the UK, providing current value estimates, previous sold prices, local information and an online community that can share information with each other. Zoopla provides everyone has free access to all the tools and information required to make smarter property decisions."

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For further information, please contact PR Team on [email protected] or +44 (0)20 3873 8770.

Notes to Editors

Average house value source: Zoopla (Feb 2008)

Regional statistics

Percentage of regional population who make an offer on a home within the first 24 hours of the first viewing:

1. East Anglia - 68%

2. Northern Ireland - 67%

3. South East - 62%

4. Wales - 61%

5. London - 60%

6. South West - 56%

7. Midlands - 52%

8. North East - 48%

9. Scotland - 43%

10. North West - 43%

Percentage of regional population that could give an accurate value of their neighbour's property:

1. East Anglia - 39%

2. Northern Ireland - 35% = South East - 33% = South West - 33% = Midlands - 33%

3. Wales - 31% = London - 31%

4. North East - 29%

5. North West - 28%

6. Scotland - 27%

Percentage of regional population that wished they owned their neighbour's property instead of their own:

1. Wales - 35%

2. North East - 30%

3. Scotland - 29%

4. London - 29%

5. East Anglia - 26%

6. South East - 24% = North West - 24%

7. South West - 19%

8. Midlands - 15%

9. Scotland - 8%

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Hello. We're Zoopla. A property website and app.

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But we know you're looking for more than that.

Because that first flat won't just be a 'great investment opportunity'.

It'll be the feeling of starting out on your own.

That extra bedroom won't just mean another £20K on the re-sale price, it'll mean having your sister over to stay.

And that bungalow won't just be a way to release some equity, it will be a chance to spend more time with the grandkids.

We know that searching for a home is about more than just checking its price, location and features (important as all those things are).

What really matters is how it makes you feel.

We know what a home is really worth.

So let us help you find yours.

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