Sellers in England and Wales made less than £100,000, or just over 40%, on the sale of their homes last year, the lowest return in a decade, according to estate agent Hamptons.
It was the second consecutive year of decline in terms of cash profits since the market peaked in 2022, when average profits reached almost £113,000 compared to £91,820 last year. Average cash returns in London fell the most, dropping below £200,000 for the first time since at least 2015.
According to Hamptons, Londoners still made the most sales with an average of £172,350, followed by sellers in the south-east and east of England, although sellers in the north-east made the most sales with an average of £38,220. The profits were low.
Aneysha Beveridge, head of research at the Hamptons, said profits from property sales typically fund a step up the property ladder, but “recent years have seen a rise in equity values, especially for apartment owners. “It's smaller and slower, which makes this more difficult.”
Beveridge added that last year, “sellers generally saw lower price increases than those who sold during the coronavirus pandemic.” Nationwide, real estate prices rose 43% from 2015 to 2024, compared to 64% from 2013 to 2022, just before mortgage rates skyrocketed. On top of this, households have to deal with rising transaction costs such as mortgages and stamp duty, making moving even more expensive. ”
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Taking all these factors into account, 9% of sellers in England and Wales sold for less than they paid, but this rises to an average of 14% in London, putting the capital on par with the North East of England. considered to be the highest. A place to sell at a loss. In 2016, just 2% of sellers in London sold at a loss, compared to 32% in the North East.
Merthyr Tydfil in south Wales replaced Barking and Dagenham as the local authority where sellers made the biggest gain in 2024 at 68%. Shepway in Kent and Trafford in Greater Manchester followed, but in 2024 only two London boroughs will be in the top 10 list, compared to all 10 London boroughs being in the capital in 2019 and 2020. was ranked.
Slow house price growth and high transaction costs are causing households to move less frequently, with 34% of sellers owning their property for less than five years.
Last year, those who sold houses made more than twice as much profit in percentage terms as those who sold apartments.
The average home sold for 47% (or £102,500) above its purchase price in 2024 after being owned for nine years. The average flat was bought 8.8 years ago and sold for 23% more (or £48,050).
