29 Dec

Many homeowners undervalue their property

Many homeowners undervalue their property

People who have owned a property for a significant period often undervalue how much their home is worth, according to a new survey.

Research from the Equity Release Council estimated that older homeowners are undervaluing their main property asset by an average of £90,000.

The average homeowner aged 55 and over paid £100,756 for their current property and have lived there for close to 18 years. According to the survey, this average property owner believed their home has increased in value by 156 per cent to total £257,584.

However, the Office for National Statistics (ONS) estimates the average UK house price has increased by 244 per cent over the last 17 years and ten months - making the average property owned by over 55 year olds worth £346,861.

"It is no secret that the property market has been kind to many homeowners, but it is remarkable to see how far people underestimate the potential size of their housing wealth, which puts the average pension pot in the shade," explained Nigel Waterson, chairman of the Equity Release Council.

He added: "At a time when savings are scarce and retirees face an uncertain financial future with the end of generous final salary pensions, these findings prove just how important it is that property wealth plays a role in financial planning for later life."ADNFCR-1222-ID-801808970-ADNFCR

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