House seller gains fall below £100,000 in 2024

This is according to new figures from Hamptons, which found that the average gross profit from the sale of a home now stands at £91,820 – a decline of £10,830 from 2023 and down significantly from £112,930 at the height of the market.

The average homeowner in England and Wales has owned their property for about 8.9 years before selling, with returns falling to their lowest level since Hamptons began tracking data in 2015. The average seller achieved a 42% increase on their original purchase price in the past year, a drop from 48% in 2023.

This downward trend reflects a cooling off in the housing market following a surge driven by the Covid-19 pandemic. Rising mortgage rates and economic uncertainties have led to slower house price growth across the UK, particularly impacting sellers who entered the market more recently.

However, despite reduced gains, 91% of households selling their homes still realised a profit.

The capitals’ sellers have also experienced a similar decline, marking the first time since 2015 that average seller gains in London fell below £200,000. In 2024, London sellers made an average of £172,350, down £31,840 from the previous year.

In percentage terms, homes in London sold for 44% more than their purchase price, a stark decrease from the peak of 100% observed in 2016.

Wales has emerged as the region offering the highest returns for sellers, with homes selling for an average of 48% more than their purchase price for the third consecutive year. Notably, Merthyr Tydfil saw sellers achieving the highest percentage gains nationally at 68%, marking a shift in property dynamics compared to previous years when London had dominated the top spots.

The disparity in returns between different property types is also evident. Sellers of houses reported an average gain of 47%, or £102,500, compared to just 23%, or £48,050, for flat sellers.

This gap has persisted, with house sellers generally seeing more substantial immediate gains than flat owners, who have struggled with stagnating property values.

Homeowners who have retained their properties for longer periods are still seeing more significant returns on their investments. For example, those who sold after 20 years realised an average gain of 83%, considerably higher than the 27% seen by those who sold after just five years of ownership.

However, this figure is notably lower than the 220% gain seen by long-term homeowners in 2019.

The trends reported by Hamptons suggest a complex and shifting landscape in the property market, marked by slowing growth and increasing reluctance among homeowners to move. Many are opting to remain in their homes longer, exacerbated by ongoing economic pressures and increasing transaction costs.

While a modest recovery in property values is anticipated, it remains to be seen how soon and how significantly these changes will revive movement within the market.