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Flat valuation: how much is my flat worth?

Thomas Miller
18.08.2022
7 min
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In this article, we will discuss flat valuation and assess methods of estimating a flat's worth. You will need a valuation when you want to buy or sell a flat. 

For flat owners, valuation is needed to list flats on the market. On the other hand, buyers need to determine a flat's market worth to receive value for money. Individuals make sure they do not pay more than what a flat is worth.     

How to value a flat or an apartment?

There are several ways to know the market value of a flat. We discuss some of these methods in this section.

Use online flat valuation estimators

There are several flat valuation calculators online that you can take advantage of. We at RealAdvisor allow you to conduct a free valuation of a property within 3 minutes. 

An online flat valuation estimator is a tool that allows you to estimate the value of your flat without having to physically visit the property. This can be useful if you are looking to sell your flat or if you are considering buying a flat and want to know how much it is worth. To use an online flat valuation estimator, you will need to input some information about the property, such as its address, size, and age. You will also need to provide information about the local area, such as the average house price in the area. Once you have input all of this information, the estimator will use this to calculate an estimated value for the property.

Investigate the market value of other flat

Flats come in similar designs, even in the same building. Therefore, obtaining the current market value may not be difficult when compared with similar flats. 

There is a long list of flats on sale in the UK on the internet. The land registry data can also assist you with the prices of sold properties.  

You can compare your flat to similar listed flats to have a general idea of what your flat could be worth. However, you must ensure that these similar flats you are comparing to must be within the same or similar geographical area. 

Price behaviours and impact are different in different places. A flat outside a city will cost different from the same flat in a city. When the overall demand for flats in a place is very high prices are likely to be huge.

To achieve this;

  • Examine both local and national trends in flat value. It is very risky to ignore the local tendencies as they are more likely to affect your valuation. 
  • The Land registry feeds the UK House Price Index with selling prices when the ownership change is documented. Data from the registry will give the fair value of a flat similar to yours. Data published by the Land Registry mostly delays a few months. This sometimes makes it difficult to conduct an up-to-date comparison in a progressive market.    
  • With this challenge from the Land Registry, you can also count on top-notch mortgage lenders in the UK like Halifax that present monthly sold properties with their price tags. Though their data may not be wholesome like that of the Land Registry, they can give you a fair idea of what your flat may value.

Critical research from these sources and other credible ones informs you whether overall prices are falling or rising and what price floor or ceiling your flat may fall in.     

Seek the services of professional

Surveyors are those professionals who can help you to evaluate your flat. They also consider the factors named earlier when conducting an evaluation. In the UK, expect to pay not less than £200 for a professional flat valuation, depending on the type of flat. 

Local real estate agents also can assist you with a valuation. They are abreast with current market behaviours and can guide you on how much your flat is worth.     

Use the rent approach to get the value of a flat

This approach is for rental income and not an outright sale of the property. When leasing out a flat for a short term, the value of the flat for the leased years is the current and projected incomes you estimate to receive. Projected incomes are discounted to obtain the present value of the flat.

How to add value to your flat 

expertise d'un appartement par un professionnel , agent immobilier, notaire

To add value to your flat, here are a few tips:

  • Ensure doors, windows and overall technological systems like electric doors, cameras and other electronic devices are properly fixed 
  • Ensure the overall interior is nice and neatly presented. Interior works include floors, walls and ceilings. Avoid cracks, old walls, rotten wood walls, presence of insects, clumsy paintings etc. 
  • Ensure plumbing issues and gas leakages are properly fixed. 
  • Ensure proper lighting. The bedroom, living room, bathroom and kitchen have their ideal lighting. Consult experts in interior works for good lighting. 
  • Make good use of space. You can add value to your flat by ensuring compartments that make good use of the available space.  

Benefits of having your flat valued 

A valued flat gives several benefits some of these are;

  • For flats on the lease agreement, you are able to estimate how much your next lease would cost.
  • For ownership of a flat, you are able to know how much to sell your flat
  • You stand a higher chance of getting a mortgage loan when you have your flat valued.
  • Refinancing of mortgage also begins with having your flat valued
  • When you value your flat you will not be cheated on how much to pay for any home insurance.
  • Valuing your flat makes you prepared for all legal issues involving your apartment.    

The average cost of an apartment in 2022

Cost of an apartment decreased and increased at different places between 2021 and 2022. Below is a table showing the average cost of apartments in the UK by the city in the first quarters (in euros per square metre). 

From the above table, London saw a decrease in the average cost of apartments in the first quarter this year while the remaining cities experienced a rise in average cost of an apartment. 

The rental cost of flats in the UK

In the UK today, you need over £1,000 to afford a flat monthly on average. The cost of a one-bedroom flat in the centre of a city in the UK averages £1,745 monthly. A similar flat on the outskirts of cities is £1,230 monthly on average.

In downtown areas, similar flats could cost rent between £1205 and £2200 monthly. Those in the periphery will cost you £900 to £1,500 monthly.

A large flat for rent will mean you need to estimate over £3,000 monthly. For example, a three-bedroom flat sited in the city centre in the UK now can cost a rent of £3,140 on average. Engaging in further checks could reveal that people pay between £2,251 and £5001 for renting a three-bedroom flat. 

A three-bedroom flat outside the city has a rent ranging from £1,701 to £2,801 with an average of £2,056.

Flat value growth

Evaluer l'etat d'un appartement, estimer la valeur réelle

The current market affects the value of your flat. COVID-19 has had a drastic impact on the purchase of some types of flats. The pandemic has caused a decline in the demand for some types of flats, leading to declining in flat value.  

According to Bloomberg, the demand for flats has fallen by 11% in April this year compared to its peak in August 2020. They make an analysis of the Land Registry data and reveal that there has been a reduction in flat sales by £400,000.

This was said to be due to those flats without spaces. According to them, people are unwilling to pay for such housing units due to the difficulties experienced during COVID-19. They indicated that prices fell in places (Greenwich, Tower Hamlets, and Lambeth) where flats are rampant.

Notwithstanding, those who could still manage such flats will benefit by paying less for them.

If you are planning to undertake a valuation of a flat or any property, contact us RealAdvisor for an accurate assessment of the property, and you will know why most buyers want to do business with us. 

Flat valuation and its worth can be implemented by understanding the following:

  • Flat valuations are necessary for a mortgage and personal buy or sales activities. 
  • Data from top mortgage lenders can help you estimate the market value of a flat.
  • A valuation can be done for free with online home valuation estimators. RealAdvisor provides such services. 
  • Using the Land Registry data is a way of undertaking the comparison approach to determine the value of a flat. 

FAQ

Do I need to pay a local real estate agent for flat valuation?

Local real estate agents normally do not charge for flat valuation as a way to be contracted to sell the property. This is mostly a marketing strategy for these local agents, but remembers there is no free lunch. The resources spent are always captured in their sale commission.

Do selling agents add a percentage to the market value of a flat? If yes, how much?

Yes, because buyers will always negotiate, selling agents add a percent of 8% to 15% to the actual fair or market price.

Thomas Miller
Thomas Miller has been a real estate agent for over 4 years now, when he is not in the field, he is dedicated to his second passion, writing, especially in the real estate market.
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