House price uncertainty creates market deadlock

- Owners staying put rather than accepting 'buyer's market' values -

New research released today shows that 91 per cent of UK homeowners believe they would get far less than they think their house is worth if they were forced to sell in today's market - resulting in a pricing standoff between would-be buyers and sellers that adds to mortgage market woes.

The study of over 1,000 UK homeowners conducted by Zoopla.co.uk, the UK's leading house prices website which provides free, current value estimates for every UK home, reveals that 58 per cent of homeowners believe they would get almost 10 per cent less than they think their home was actually worth and a further 33 percent believe they would have to accept more than a 10 per cent discount to their value expectations if they had to sell in the current climate.

"The results clearly show an imbalance in current value perceptions between potential buyers and homeowners, with owners not yet willing to meet levels that buyers are prepared to pay today" says Alex Chesterman, CEO of Zoopla.co.uk.

As a result of this standoff, the study reveals that the vast majority of homeowners appear to have put off any plans to move in favour of refinancing and making home improvements in the coming year. According to the Zoopla.co.uk research, 70 per cent of homeowners said they were planning some form of home improvement in the next 12 months and a further 15 per cent are planning to re-finance in a bid to ease their financial pressures.

Chesterman adds:

"With monthly house sale transaction volumes at almost half the levels of last year*, the credit crunch is only partly to blame. In the current market, transaction volumes are likely to remain frozen until sellers either reduce their price expectations or buyers gain significant confidence. In the meantime, it leaves homeowners with few options other than adjusting their expectations or staying put and making the most of it. For those faced with making decisions in this market - either buying, selling or simply curious - Zoopla.co.uk is the ultimate tool, providing free instant value estimates on any UK home, along with local market information and value trends".

- Ends -

For further information, please contact PR Team on pr@zoopla.co.uk or +44 (0)20 3873 8770.

Notes to Editor

• Research carried out by Fly Research amongst over 1,000 UK homeowners for Zoopla.co.uk in October 2008

• * Residential property transaction volumes for England and Wales

Source: Land Registry

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