UK property owners think homes are worth more than they actually are

UK property owners think that their homes are valued much higher than they actually are, according to new findings from the National Association of Estate Agents (NAEA).

The association's president, Chris Brown, said that people looking to sell their home realised the market was tough, but still had an inflated view about how much their property was worth.

"A lot of homeowners are thinking their houses are worth more. A simple truth of the matter is that it's worth what somebody would pay today, not what somebody would have paid yesterday," Mr Brown said.

He added that a lack of daily exposure to the housing market meant homeowners were not as clued up on the property market as estate agents.

According to a survey by Zoopla!, 97.3 per cent of UK homes have fallen in value over the past year, while just 2.7 per cent have risen in value.

The survey also revealed that 38 per cent of UK property owners are expecting the value of their home to stay the same or increase in value.

House Prices News posted on 21/10/2008 17:21:10