Average house seller in 2024 made profit of nearly £92,000, analysis shows
According to an analysis, the average house seller in England and Wales last year made a deal for £91,820 more than they had originally paid for their property.
In percentage terms, the average seller made a 42% gross profit, which was the lowest return since at least 2015, when records began, said property firm Hamptons. On average, sellers had owned their property for just under nine years.
The average gross profit made by sellers in 2024 was £10,830 lower than in 2023 and down from a peak of £112,930 in 2022 when strong house price growth pushed gross gains (before costs were factored in) into six figures for the first time in the study. Despite lower price gains last year, around nine in 10 (91%) households are estimated to have achieved more than they paid. House sellers saw more than double the percentage gains recorded by those selling a flat last year, according to the research.
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The average house sold in 2024 for 47% more than its purchase price, while the average flat sold for 23% more. The average price gain made by house sellers in London last year fell below £200,000 for the first time since at least 2015.
The average 2024 seller in London saw the value of their property rise by £172,350 since purchase, while in the North East it was £38,220. The firm noted that many sellers in 2016 had bought their homes just after the financial downturn, a period from which house prices rebounded swiftly, especially in southern England.
As house prices have been rising over the long term, homeowners who have held onto their properties for longer periods tend to see larger percentage gains. Hamptons revealed that the average homeowner in England and Wales who sold in 2024 having bought 20 years ago sold for 83% more than they paid, compared with a 27% gross profit for those who had bought five years ago.
However, the firm added that slower house price growth in recent years has dampened gains. Those who sold in 2019 having owned a home for 20 years sold for 220% more than they paid, significantly outperforming 2024 sellers who had owned their home for the same period, due to the strength of price growth in the early 2000s.
Aneisha Beveridge, head of research at Hamptons, said: “Until property prices recover, or transaction and mortgage costs decrease, homeowners are likely to stay put for longer. Usually, homeowners need to inject thousands of pounds from their own pocket to make a move financially viable, which often scuppers many potential sales.”
Hamptons utilised property sales data from the Land Registry to correlate homes sold in 2024 with their previous purchase prices, drawing on records spanning over two decades.