UK homeowners in denial over housing slump
'Not my house' mentality leads to greater optimism for own home vs. neighbours
Despite the widespread coverage of the property market downturn and significant evidence to support falling house prices, one in three UK homeowners believe that the value of their home has not been affected by the recent housing marke t woes - with 32 per cent reporting that they think the value of their property has either remained the same or risen over the past 12 months.
Zoopla.co.uk, the UK's leading house prices website, surveyed over 1,000 homeowners for their views about home values over the past year and market expectations for the coming year in a bid to uncover the 'state of confidence' throughout the country. As the first UK website to provide free instant value estimates on every UK home, Zoopla.co.uk serves as somewhat of a reality check for some homeowners who may be in a 'state of denial'.
Whilst one third of homeowners may think that their property values have not been hit by the crunch, the market reality is not quite as rosy. According to figures released today by Zoopla.co.uk, 97.3 per cent of UK homes have declined in value over the past year and only 2.7 per cent have actually risen in value, indicating a significant number of homeowners in denial.
And underscoring the gap between perception and reality, twice as many of the homeowners surveyed were more optimistic about the value prospects of their own home over the coming year than they were about their neighbours homes, with 38 per cent expecting the value of their home to stay the same or increase versus only 19 per cent expecting house prices overall to remain the same or increase.
Furthermore, only 5 per cent of UK homeowners think that the value of their property will decrease significantly in the next 12 months while over three times as many (16 per cent) think that neighbouring house prices will decrease dramatically. And 30 per cent think the value of their home will increase over the next 12 months whilst only 14 per cent think that neighbouring values will increase over the same period - reinforcing the far greater optimism, or possible delusion, owners have when it comes to their properties than those around them.
Alex Chesterman, CEO of Zoopla.co.uk, commented:
"Our survey indicates quite a significant gap between perception and reality and perhaps more interestingly how homeowners perceive the value of their own home versus those of their neighbours. Clearly there is some element of denial at play here that results in people believing that they are insulated from the market troubles that affect the homes around them. This also spills over into market confidence, where more homeowners surveyed expect the value of their homes to perform better over the coming year than in the past year, indicating that many believe the worst is over despite little evidence to support this. For those who wish to keep track of their most valuable asset - or check out the value of anyone else's - Zoopla.co.uk is the ultimate tool, providing free instant value estimates on any UK home, along with local information and market trends."
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Notes to Editor
Zoopla Awards
Winner: 'UK's Most Promising Internet Company 2008' (First Tuesday)
Nominated: 'Socially Powered Site of the Year' (.net Magazine)
About Zoopla
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It'll be the feeling of starting out on your own.
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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.
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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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