House prices 'overvalued'

Posted: 21 May 2009 11:32:03 GMT

House prices in the UK are overvalued by more than £37,000, according to new research.

A study by Abbey Mortgages has revealed that homeowners believe their property is worth more than official figures suggest.

The latest Land Registry information puts the price of the average home in England and Wales at £152,895, but homeowners surveyed by Abbey calculated their bricks and mortar to be worth an average of £190,175.

Nici Audhlam-Gardiner, director of mortgages at Abbey, said: "Homeowners looking to remortgage or sell their homes in the near future need to make sure that the value of their home is accurate and [ensure it] has been valued by professionals."

If this is not done, problems and disappointments may occur further down the line of the property-selling process.

Earlier this month, Abbey started offering its two, three and five-year fixed-rate mortgage products at 70 per cent loan-to-value.


© Houseladder Ltd