Brits ‘over-valuing’ homes, report suggests

Britons tend to over-estimate the value of their homes, a survey has suggested, something that could lead to future debt management problems should they come to remortgage.

Research carried out by Abbey Mortgages has shown that typical UK homeowners value their houses by £37,280 more than Land Registry figures.

It discovered that people living in the east or the south-east are the most optimistic about house prices, with some thinking their properties are £53,422 above industry values.

Director of mortgages for the bank Nici Audhlam-Gardiner said that owners “looking to remortgage or sell their homes in the near future need to make sure that the value of their home is accurate”.

This can help to avoid “problems or disappointment further down the line”, she added.

Meanwhile, homeowners who have difficulties with arrears have been urged by Al Elliot from the Homeowners Advice Centre to contact lenders as soon as possible.

By Jamie Price