Over-55 homeowners underestimate property wealth by �90,000

Over-55 homeowners underestimate property wealth by �90,000

New research by the Equity Release Council suggests that many homeowners over-55 have far greater housing wealth than they realise.

The research shows the average UK homeowner aged over 55 paid £100,756 for their home, and has lived there for nearly 18 years.

The respondents estimate their home now to be worth £257,584, or a rise of 156% on average.

The Council goes on to say that according to the Office for National Statistics, the average UK house price has risen by 244% over the same period, or £346,861. 

This is almost £90,000 (£89,277) more than those respondents estimated.

According to the research, nearly 60% of over-55 homeowners had not had their property valued since they bought it, an average of nearly 18 years ago.

Nigel Waterson, Chairman of the Equity Release Council, commented:

“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.

 

Read the full research here:

https://www.equityreleasecouncil.com/news/over-55-homeowners-underestimate-property-wealth-by-200000/