Sellers in England and Wales made less than £100,000 profit on the sale of their home last year, or just over 40% – the lowest return in a decade – according to the estate agent Hamptons.
It was the second annual fall in a row in terms of cash profit after the market hit a peak in 2022 when the average gain hit almost £113,000 compared with £91,820 last year. The average cash return in London fell by the most – dropping below £200,000 for the first time since at least 2015.
Londoners still made the most on their sales at £172,350 on average, according to Hamptons, followed by sellers in the south-east and east of England, while sellers in the north-east gained the least at £38,220.
Aneisha Beveridge, the head of research at Hamptons, said that profits on the sale of properties typically funded a step up the property ladder but “smaller and slower equity gains over recent years, particularly for flat owners, had made this more challenging”.
Beveridge added that last year: “Sellers generally experienced less price growth than those who sold during the coronavirus pandemic. Property prices rose 43% across the country between 2015 and 2024, compared with 64% between 2013 and 2022, just before mortgage rates spiked. On top of this, households have had to grapple with higher mortgage and transaction costs, such as stamp duty, making it more costly to move.”
Once all those factors were taken into account, 9% of sellers in England and Wales sold for less than they paid, rising to an average 14% in London – putting the capital on a par with the north-east of England as the most likely location to sell for a loss. In 2016, only 2% of London sellers sold at a loss, compared with 32% in the north-east.
Merthyr Tydfil in southern Wales replaced Barking and Dagenham as the local authority where sellers made the biggest percentage gains in 2024 at 68%. It was followed by Shepway in Kent and Trafford, Greater Manchester, with only two London boroughs appearing in the top 10 list in 2024, compared with all 10 being in the capital in 2019 and 2020.
Weak house price growth and high transaction costs are causing households to move less often, with 34% of sellers having owned the property for less than five years.
House sellers made more than double the gains in percentage terms than those selling a flat last year.
The average house sold in 2024 for 47% (or £102,500) more than its purchase price, having been owned for 9 years. The average flat sold for 23% (or £48,050) more, having been bought 8.8 years ago.
