SunLife report suggests older homeowners are underestimating their property's value
Many UK homeowners over the age of 50 could be undervaluing their properties, potentially overlooking financial opportunities, according to new research from over-50s life insurance and equity release specialist SunLife.
The findings, published in SunLife’s third Life Well Spent report, show that those aged 50 and over have typically lived in their homes for 22 years, having purchased them for an average of £148,948. On average, respondents estimate their homes are now worth £334,106 – a 124% increase since purchase.
However, SunLife’s analysis suggests that homeowners may be significantly underestimating their property values. If the home purchased for £148,948 in 2002 appreciated at the national average, it would now be worth £377,166 – a 153% increase. This indicates a potential undervaluation of £43,060 on average.
For the quarter (24%) of over-50s who have lived in their homes for more than 30 years, the actual rise in value could be even higher, highlighting a significant gap in perceived versus actual equity.
Accurately valuing a home could provide over-50s with options to unlock the wealth tied up in their properties, SunLife suggests. Obtaining a professional valuation is the first step to understanding a home’s true worth.
For some, downsizing or relocating to a less expensive area could free up significant funds to support a more comfortable retirement. Others may consider equity release, which allows homeowners to access tax-free cash without selling or moving.
According to SunLife’s survey, those who opted for equity release accessed an average of £62,848. Respondents used this money for a variety of purposes, including home improvements (57%), paying off debts (33%), funding holidays or travel (30%), supplementing their income (17%), and helping family members financially (13%).
SunLife chief executive Mark Screeton said the findings underscore how many homeowners might be underestimating their home’s financial potential.
“It’s no secret that house prices in the UK have risen a lot in the last few decades,” Screeton said. “But despite this, it seems many of us are still underestimating how much our home is worth.
“Finding out the actual value of a home could open up financial options. For example, one in four people over 50 worry that they may have to move home in the future, even though they don’t want to. For some of them, equity release could be a way to stay in their own home while accessing the funds they need. But if they’re underestimating their home’s worth, they might not realise that this is an option.”
Want to be regularly updated with mortgage news and features? Get exclusive interviews, breaking news, and industry events in your inbox – subscribe to our FREE daily newsletter. You can also follow us on Facebook, X (formerly Twitter), and LinkedIn.
