UK Homeowners Are Overvaluing Their Properties by 16% — Here's Why That Matters for Equity Release

The 16% gap: what the research shows

The Quick Move Now study, published in May 2026, analysed the difference between homeowners' own estimates of their property's value and the assessments made by estate agents. The average gap across England and Wales was 16% — meaning that if you think your home is worth £350,000, an independent assessment might return closer to £294,000. That's a difference of £56,000.

Regional variation is significant. Homeowners in the North East showed the largest gap, overestimating by 24% on average. The North West came in at 19%. London homeowners were closer to reality but still overestimated by 14%.

Property type also matters. Flat owners overpriced by an average of 21% above agent assessments — the largest gap of any property type. Detached homes showed a smaller but still meaningful 13% gap.

These figures are corroborated by market data. Zoopla data from May 2026 shows that 44% of homes listed for sale do not sell, and of those that do, 53% require a price reduction before completing. The average accepted sale price is 3.5% below asking — around £18,800 below the listed figure. The market is quietly pricing in what homeowners resist accepting.

Why this matters so much for equity release

Equity release and lifetime mortgage amounts are calculated using your property's formal, independent valuation — not what you believe your home is worth. When you apply for equity release, the lender commissions a Regulated Valuation Report from an independent RICS-qualified surveyor. That surveyor assesses your property on the basis of comparable recent sales in your area. Their figure, not yours, is what determines how much you can borrow.

The loan-to-value (LTV) ratio — the percentage of your property's value a lender is willing to offer — is applied to this surveyor's valuation. If the valuation comes in 16% lower than you expected, the amount you can release falls proportionally. On a typical property, this could mean a difference of £30,000 to £60,000 in available funds.

This is not a reason to be discouraged. But it is a reason to plan carefully and get realistic figures before making financial commitments based on an assumed release amount.

How independent valuations work in practice

The equity release valuation process works like this:

• Once you have received an equity release illustration and wish to proceed, your adviser will instruct a valuation on behalf of the lender.
• An independent RICS-qualified surveyor visits your property and assesses it against recent comparable sales in the local area.
• The surveyor's valuation report is submitted to the lender. The lender then confirms the amount they are prepared to offer based on that figure and your age and health.
• If the valuation is lower than expected, you can discuss with your adviser whether to proceed, whether a different product or lender might be more suitable, or whether to re-assess your plans.

It is also worth noting that valuations can occasionally come in higher than expected, particularly for homes that have been significantly improved. The surveyor's assessment is objective — it can go either way.

Planning realistically before you start

A lower valuation does not mean equity release is off the table. Even with a more conservative property value, many homeowners can still access a meaningful lump sum or drawdown facility that materially improves their retirement finances. What it does mean is that the right approach is to plan around realistic figures, not optimistic ones.

Verity Home's advisers will work with you at the outset to help you understand what your home could realistically be worth, what a range of equity release scenarios might look like across different valuations, and how to align your plans to realistic rather than assumed numbers. That way, a formal valuation rarely comes as a surprise.