It’s often said that British people are obsessed with owning a home and property prices. A new survey indicates that’s the case, with more than half of Brits checking how much their family and friends have paid for their homes. There’s more than one reason why people love to check how much a property has sold for.
According to a survey from Zoopla, just a fifth of people think it’s acceptable to ask someone what their home is worth. Many think posing this question is “rude”, but online tools mean it’s easier than ever to snoop and harder to resist checking. 6 in 10 Brits admitted they have looked up how much others have paid for their home. From friends to colleagues, it’s become common to look at the sale price of properties of someone you know.
The survey found that some people use property prices to make presumptions about a colleague’s salary or even check potential partners. 11% has checked how much a colleague paid for their home and 3% have checked the price of their boss’s home. 8% also said they checked the value of the home of a partner, ex-partner, or someone they were dating, with the value influencing the decisions some made about their relationship.
But there are other reasons for watching property prices rise.
1. To understand your own home’s worth
Some 23% of people said they checked house prices to better understand how much their own home is worth. Your home is likely to be one of your largest assets, so it’s not surprising that people want to keep track of its value.
Your home increasing in value can also help you secure a better mortgage deal. As the property price rises, the amount of equity you hold also increases. As a result, you can take out a mortgage with a lower loan-to-value (LTV) ratio. Generally, the lower the LTV, the more competitive the interest rate you’ll be offered. For example, a first-time buyer with an LTV of 90% is likely to pay a higher interest rate than someone who needs a mortgage to cover 70% of the value of their home.
Over a mortgage, keeping track of your home’s worth and remortgaging could save you thousands of pounds in interest repayments. If you need help finding the right mortgage deal for you, please get in touch.
2. The rapid rise can be exciting to watch
House prices have soared over the last decade. And it can make watching the value of your home, and other properties, exciting to watch compared to other assets you may have.
According to the Halifax House Price Index, in the year to August 2021, house prices have increased by a huge 7.1%. The average house in the UK is now worth a record £262,954. With interest rates low on savings accounts and investment markets experiencing volatility in the last year, seeing your house price climb can be satisfying.
3. To inspire projects for your own home
Almost a fifth (18%) of snoopers said they checked properties online because they were curious to see what someone’s home looked like on the inside. As well as giving you a glimpse into someone’s life, it can be a great way to understand what’s possible with your own property or inspire ideas for your next DIY project. If you’re thinking about knocking down a wall to make living spaces open plan, for example, seeing photos from another property can help you visualise it.
It’s also a chance to see what adds value and what local buyers may be looking for. If a property is valued higher than your home, you may be able to see what improvements have a real impact. Would converting the loft lead to a return on your investment if you want to sell? Or would giving the décor a simple update have a real impact on the value of your home?
How does your home fit into your plans?
As one of your largest assets, your home is likely to play a key role in your plans too. Whether being mortgage-free is essential for your retirement plans or you hope to move to accommodate a growing family, your home may be important to your future. You may even plan to sell your home or release equity to fund plans.
Understanding what your home is worth and taking steps to reduce mortgage repayments through a competitive deal can help you get the most of your property. If you’d like to discuss your mortgage or other property needs, please contact us.
Please note: This blog is for general information only and does not constitute advice. The information is aimed at retail clients only.
Not all mortgage contracts are regulated by the Financial Conduct Authority. Think carefully before securing other debts against your home. Your home may be repossessed if you do not keep up repayments on your mortgage.