0:04 AM, 13th January 2025, About 2 hours ago
Text Size
House sellers in England and Wales saw their average profit slip below £100,000 last year, down from a record high in 2022, research reveals.
According to Hamptons, the average household sold their home for £91,820 more than they paid, representing a 42% gross profit – but that’s the lowest return in more than a decade.
London sellers were particularly hard hit, with gains falling below £200,000 for the first time since at least 2015.
The data shows that a home seller in the capital is now equally as likely to sell for a loss as sellers in the North East.
The firm’s head of research, Aneisha Beveridge, said: “Despite slower house price growth in recent years reducing how quickly homeowners build up equity, 91% of sellers still sold their homes for more than they paid, with nearly a third making six-figure gains.
“These proceeds typically fuel moves up the property ladder.
“However, smaller and slower equity gains over recent years, particularly for flat owners, has made this more challenging.”
She added: “2024 sellers generally experienced less price growth than those who sold during the pandemic.
“Property prices rose 43% across the country between 2015 and 2024, compared to 64% between 2013 and 2022, just before mortgage rates spiked.”
Hamptons says that Merthyr Tydfil has replaced Barking and Dagenham as the local authority where sellers made the biggest percentage gains in 2024.
Just two London boroughs appear in the top 10 list in 2024 – Barking and Dagenham and Waltham Forest – compared to all 10 being in the capital in both 2019 and 2020.
Also, house sellers saw more price growth over the last five years than flat sellers saw in the last 10 years.
However, high transaction costs and weak house price growth mean homeowners aren’t moving as often, particularly in London.
Just 25% of 2024 London sellers had bought and sold within five years, compared to 34% of sellers nationally.
While property seller returns declined nationwide between 2023 and 2024, Londoners experienced the steepest drop in absolute terms.
The average London seller in 2024 realised a £172,350 profit, a fall of £31,840 compared to 2023.
This marks the first time London gains have fallen below £200,000 since at least 2015 – mostly down to slower house price growth in the capital over the past decade.
In percentage terms, the average London home sold for 44% more than its original purchase price, a decline from the 100% peak observed in 2016.
