Two-thirds of homeowners in England and Wales are overhauling their homes

Whilst the market rate is a fluctuating price that buyers are willing to pay in the market, an underwritten value is a lender’s estimate of a property’s worth. 

The Property Buying Company analysed internal data of 3,725 deals in the past year (15th July 2025 to 15th July 2026) to reveal how much homeowners are overvaluing their properties by. 

Out of 3,725 records included in the analysis, two-thirds of homeowners (66%) believed their home was worth more than its underwritten value. On average, homeowners were overvaluing their homes by 4.3%.

Nearly one in five (19%) were overvaluing their home by more than 10%, with one in 20 (5.2%) overvaluing their home by more than 20%. 

The findings also show that one in five homeowners (20.3%) were undervaluing their property’s value. 

Average overvaluation by county 

Greater London residents overvalued their homes by the highest average amount, standing at 6.9%. This is closely followed by the county of Warwickshire at 6.7%, with Lincolnshire ranking in third at 6.1%. 

Percentage of people overvaluing by county 

Buckinghamshire takes the top spot for the percentage of residents overvaluing their home by any amount, standing at 78.9%. This equates to nearly four in five residents overvaluing their property. Following in second is Suffolk at 78.3%, with Cumbria in third at 77.1%.

Overvaluation by more than 10% by county 

Nearly a third of residents in the Vale of Glamorgan (28.9%) overvalued their home by more than 10%, which is the highest out of all counties. Ranking in joint second are the counties of Cumbria and Humberside, where a quarter of homeowners (25.7%) are overvaluing their homes by more than 10%. Closely following in third is Durham at 25.5%.

Overvaluation by more than 20% by county

Around one in eight (12.3%) Durham residents overvalued their home by more than 20%. Following in second is Tyne & Wear with around one in nine (10.9%) valuing their home by over 20%. In third is Humberside, where 9.5% of residents who overvalued their home did so by more than 20%.

Average overvaluation by postcode area

Residents in SR, Sunderland, Tyne & Wear, overvalued their homes by the highest average amount, standing at 9.5%. This is followed by SS in Southend-on-Sea, Essex, at 9.0%. Ranking in third is BA, in Bath, Somerset, at 7.5%.

Percentage of people overvaluing by postcode area 

Ipswich, Suffolk, (IP) takes the top spot for the percentage of residents overvaluing their home by any amount, standing at 85.7%. This equates to over four in five residents overvaluing their property. Following in second is WN, in Wigan, Greater Manchester, at  82.1%. Ranking third is PR, in Preston, Lancashire, with 80.6%.

Overvaluation by more than 10% by postcode area

Over a third of residents (38.1%) in SR, in Sunderland, Tyne & Wear, overvalued their home by more than 10%, which is more than any other postcode area. This is followed by L, in Liverpool, Merseyside, at 32.6%. In third is CT, in Canterbury, Kent, at 31.9%.

Overvaluation by more than 20% by postcode area 

Nearly a quarter (23.8%) of residents in SR, Sunderland, Tyne & Wear, overvalued their home by more than 20%, which is the highest out of all postcode areas. Following in second is DH, Durham, County Durham, at 14.3%, with DL, Darlington, County Durham in third at 13.5%.

Average overvaluation by postcode district 

BD4, located in Bradford, had the highest average overvaluation, standing at 52.3% above the underwritten value. This is followed by NW10 in North West London, which includes boroughs such as Willesden, Harlesden and Brent Cross, with an average overvaluation of 37.9%. Ranking in third is BA1, which covers Central Bath, Batheaston, Bathford and Swainswick, with an average overvaluation of 29.6%.

Overvaluation by more than 10% by postcode district 

Three-quarters of  people (75%) overvalued their homes by more than 10% in the following five postcode districts: 

TN34 - Hastings, East Sussex

CW5 - Nantwich, Cheshire

YO14 - Filey, North Yorkshire

SK14 - Hyde, Greater Manchester

L36 - Huyton, Merseyside  

Overvaluation by more than 20% by postcode district 

Two in three people (66.7%) overvalued their homes by more than 20% in the following postcodes: 

BD4 - Bradford, West Yorkshire 

NW10 - North West London

Ranking in third place is DN15, located in Scunthorpe, North Lincolnshire, where half of people (50%) overvalued their home by more than 20%.

Commenting on the findings, Karl McArdle, co-founder of The Property Buying Company, said: 

“Our data demonstrates a clear disconnect between homeowners’ perceptions and objective property valuations, with just 14.1% of homeowners spot on with their valuations. The majority of homeowners are overvaluing their homes, compared to its value determined by the underwriting process. This can be due to a number of factors such as emotional attachment to the property, investment bias and limited knowledge of the property market. 

“The problem with overvaluing your home and listing this as the sale price is that, whilst you may get an offer, the bank will not lend this amount to the buyer. This results in either the buyer needing to renegotiate to a lower purchase price or finding a way to cover the difference that the bank won’t lend.” 

If you’re looking for a quick and simple way to sell your home, check out The Property Buying Company.