NAEA: Homeowners' properties are worth less than they think

Date:Wednesday 22nd October 2008
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Homeowners and mortgage holders believe that their properties are worth more than they actually are.

This is the assertion made by the National Association of Estate Agents (NAEA), which said people with mortgages do not realise the true value of their homes.

Chris Brown, NAEA president, said that while homeowners know the market is not healthy, they are not aware of what their houses are really worth.

"A simple truth of the matter is that it's worth what somebody would pay today, not what somebody would have paid yesterday," he explained.

Mr Brown added that homeowners are less exposed to the property market than estate agents and do not realise "how dire the housing situation is".

According to the Zoopla! housing survey for October, 97.3 per cent of UK homes have declined in value over the past year.

Just 2.7 per cent have increased.

Of homeowners, 38 per cent think the value of their property will stay steady or increase, while 19 per cent expect house prices overall will remain the same or rise.