Agents urged to grasp ‘listings opportunities’ as UK values hit £10trillion

Agents have a “clear opportunity” to nudge high-value homeowners who are considering listing their properties for sale, Zoopla claims.

It comes as research by the portal found the total value of UK homes has surged to more than £10trillion this year as strong demand and a lack of supply continues to drive house prices higher.

Zoopla’s latest Value of Housing Report takes into account the change in value of the 29.5m homes in the UK. 

Using Zoopla’s valuation estimate, it monitors the rise and fall of prices with data revealing that 9.4m homes 32% of all properties, have grown in value by more than £50,000.  

The analysis compared property values from pre-pandemic in February 2020 to April 2022.

It found that the average homeowner has earned £48 per day in capital gains since the start of the pandemic. 

With the average UK household income £34,100, some properties are making more than their owners salaries as the total value of homes, Zoopla said.

These increases, Zoopla claims, could be enough for agents to encourage interested vendors to list their homes.

Throughout the UK, Wales has seen the greatest increase in value (22%) followed by the North West and South West (both 20%), according to the research.

In London however, the increase is just 7%.

Source: Zoopla

The greatest value of homes are located in London and the South east which account for 23.5% the of all the value, of all homes but weaker growth means the share of housing wealth has fallen from 26% pre-pandemic, Zoopla said.

Higher average prices explain why more than a third of these homes are located in London and the South East. 

However, the South West region contains 1.9m homes that grew by more than £50,000, the most for any area.  A further 9.4m homes grew by between £25,000 and £50,000.
 

Source: Zoopla

Not everyone has seen gains during this period with the value of 1.6m homes (5.7%) currently the same or lower than pre-pandemic. 

Half of these homes have seen a value decline of 5% or more with most concentrated in inner London where the impact of the pandemic has hit travel, working patterns and demand for homes.

Zoopla’s analysis reveals 28% of the homes declining by more than 5% were in London - of which half were in the central London boroughs of Westminster, Kensington & Chelsea, Islington, Hammersmith & Fulham, Tower Hamlets and Southwark. 

Aberdeen and Aberdeenshire, where the economy suffers from the historic decline in oil prices accounted for a further 6% of homes declining in value.  

Andy Marshall, chief operating officer at Zoopla, said: “The impact of the pandemic on the value of housing across the UK cannot be underestimated, with one in three homeowners making over £50,000 on their property during the pandemic. 

“This provides a clear opportunity for agents when it comes to nudging those high value homeowners to sell their properties - highlighting how their property has significantly increased in value over the course of the pandemic could be the final push they need to take the plunge and list their property for sale.”