1 in 5 equity release customers 'shocked' with low valuation

1 in 5 equity release customers 'shocked' with low valuation

Research from Bower Retirement Services has found that almost one in five people who take out equity release have received lower than expected property valuations when they take out plans.

Advisers estimate that 19% of customers over value their homes before starting an application, despite the average value of homes increasing.

Around 70% of advisers questioned say they have seen increases in the average value of homes owned by customers they deal with and 21% are seeing substantial increases in property values.

14% of advisers say the average house price of customers they deal with is £500,000 or more, underlining the expansion of the equity release market.


Bower’s research shows advisers expect continuing growth in the equity release market during 2016 but there is confusion about the possible impact of regulatory changes from the FCA review of the market and the Financial Advice Market Review.

Around 35% of advisers say they are unsure if the FAMR will be positive for the equity release market while 36% are not convinced the FCA review looking at barriers to entry and the market in general will be positive.

Andrea Rozario, Chief Corporate Officer at Bower Retirement Services, said: “Lower than expected valuations are an emerging issue for the equity release market with many customers over-estimating their property’s worth.

That can come as a shock when people are making the decision to access their property wealth as part of retirement planning underlining the need for specialist advice and service throughout the equity release process. That becomes even more important as average property values of equity release customers are continuing to rise with increasing number of customers with houses worth £500,000 or more recognising how property wealth can help with retirement planning.”

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Latest Comments

Oliver Conway
Oliver Conway 18 May 2017

Making a neat inventory is a good idea, but if the seller is not willing to provide it, can the buyer demand it?

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Bertrand
Bertrand 17 May 2017

First step to nationalisation of the private rented sector IMHO. Nanny state poking their noses into things yet again. I object, as a decent landlord, sometimes having to deal with some pretty awful tenants,...

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Izzy
Izzy 16 May 2017

This is such a great a post. I love the detail you've gone into. It's a very useful article for helping those who are looking at deciding which sector they would like to go into! When I first started investing...

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paul burnham
paul burnham 30 Apr 2017

Jeremy Corbyn's pledge that a Labour government would build 500,000 new council houses must electrify the general election campaign. Reliance on markets and the profit motive has brought huge housing-related...

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CommercialTrust
CommercialTrust 28 Apr 2017

Sadiq Khan?s announcement of an online database of landlords and letting agents who have been convicted of housing offences, appears on face value to be a variation of the already implemented Database

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warren
warren 26 Apr 2017

You're very welcome Mary! Glad you enjoyed them :)

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Mary Ward
Mary Ward 26 Apr 2017

Thank you for the wonderful ideas. First impressions can make or break a deal. It's sadly that many homeowners drop the kerb to create an off-street parking space.

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Tony Gimple
Tony Gimple 14 Apr 2017

I'm not at all surprised that so many landlords are still confused about what the tax changes really mean and how it will affect them. In particular, the blind rush to incorporation is leaving landlords...

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MH
MH 13 Apr 2017

You are right that the bank holidays are going to be spoiled in looking for the properties. But people who want to sell their property and looking for the better relocation, they can get benefits of this...

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bnellyb
bnellyb 08 Apr 2017

There will be an exodus of private landlords over the next 5 years as tax changes take effect, private landlords provide an important service to the rental market, why do housing associations and councils...

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Fred Cassman
Fred Cassman 07 Apr 2017

"Make it look like you are at home": often people forget this and share on facebook their location!

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jared townsend
jared townsend 05 Apr 2017

It'll be interesting to see how & if the Government's asset sale regarding mortgages helps

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