Greater potential for long-term owners
The study surveyed over 2,000 people aged 50 and above about their finances and spending habits. It found that most respondents have lived in their homes for approximately 22 years. These properties were initially purchased for an average of £148,948, with homeowners now estimating their homes to be worth £334,106 – an impressive 124% increase.
However, it appears homeowners could be underestimating the real value of their homes. National averages from the Land Registry House Price Index show that a property bought in 2002 for £148,948 could now be worth £377,166. This reflects a 153% increase and indicates that homeowners may be undervaluing their properties by around £43,060 on average.
The report also highlights that almost a quarter of over-50s have lived in their homes for more than 30 years when properties were even cheaper. The potential for underestimated equity could therefore be far greater in some cases.
Given that one in four people over 50 have worries that they may have to move home in the future, despite not wanting to, it means potentially thousands of older homeowners may actually be able to keep the home they love.