In percentage terms, people who sold their home last year made a 42% profit, Hamptons revealed.
The gains made by sellers last year were down on the record £112,930 profit in 2022, and Hamptons said this had been falling since the market peaked that year.
Despite the lower returns, 91% of people sold their property for more than they paid in 2024.
Lower seller gains across the country
Hamptons found that sellers in every region of the country saw their returns fall between 2023 and 2024, with Londoners seeing the biggest decrease in cash terms.
The average 2024 seller in London saw the value of their home increase by £172,350 since purchasing, £31,840 less than those who sold the year before.
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This was also the first time since 2015 that seller gains in the capital had dropped below £200,000.
This was mainly driven by muted house price growth over the last decade. In percentage terms, the average London home sold for 44% more than its purchase price last year, a figure that has been declining since peaking at 100% in 2016.
Seller gains have become more “evenly distributed” across the regions, Hamptons said. In 2016, 29% of homes that sold for £100,000 more than the purchase price were in London, but in 2024, this fell to 18%. Meanwhile, the share of homes making six-figure gains in the Midlands and North of England rose from 17% in 2016 to 29% last year.
Londoners are also now just as likely to make a loss when selling up as those in the North East. In 2024, 14% of homeowners in London sold their homes for less than they paid, an equal share to those in the North East.
This was a change from 2016, when just 2% of London homeowners sold at a loss, compared to 32% of sellers in the North East.
The largest share of Londoners who sold at a loss last year was located in Inner London and they purchased their home within the last nine years.
Longer-term homeowners see bigger returns
On average, people who sold their home last year owned it for 8.9 years, and Hamptons’ data showed that those who owned their homes for the longest made the most gains.
The average homeowner in England and Wales selling in 2024 after buying their home 20 years ago would have seen the value rise by 83% over that period, triple the 27% gain enjoyed by people who purchased five years ago.
Hamptons said the slower house price growth in recent years had suppressed gains. For example, those who sold in 2019 and bought their home 20 years ago would have seen the value more than treble, with a gain of 220%.
For most of the last two decades, property price rises have outpaced inflation, but those who purchased between 2005 and early 2008 – just before the financial crash – would have seen an underperformance in house price growth.
People who bought a home in 2007 and sold it in 2024 made a 49% gain, lower than the 67% rise in inflation over the same period.
The trend was reversed in London, however, with properties underperforming in the short term but outperforming on a longer-term basis.
Hamptons’ data showed that the average Londoner who bought a home after 2014 and sold in 2024 made smaller gains than homeowners in the rest of the country and underperformed inflation. However, those who purchased before 2013 saw bigger returns and outpaced inflation.
For example, the average London homeowner who sold in 2024 made a 121% gain on their purchase 20 years ago, higher than the England and Wales average gain of 83% and inflation of 77%.
The firm said slower house price growth in the English capital had limited people’s willingness and ability to move, with sellers from last year owning their homes for the longest at an average of 9.6 years.
Just a quarter of London homeowners who sold last year had bought and sold their home within five years, compared to 34% of sellers across the country.
Flat sellers restricted by slower price growth
Hamptons showed that people selling a house saw gains that doubled what people selling flats achieved.
The average house sold last year for 47% or £102,500 more than its purchase price after being owned for nine years, while the average flat sold for 23% or £48,050 more after being purchased 8.8 years ago.
Slower flat price growth since the pandemic resulted in house sellers seeing higher value inflation in the last five years than flat sellers saw in the last 10 years.
The average house seller who sold in 2024 after owning their home for five years made a gain of 31%, compared to a flat seller who saw a return of 30% after owning their property for 10 years.
Hamptons said the weaker equity growth made it harder for flat owners to move, with just 32% of flat owners who sold in 2024 moving within five years, compared to 40% who sold in 2019 and owned their property for the same amount of time.
Aneisha Beveridge, head of research at Hamptons, 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.
“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. 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.”
She added: “In London, the issue is particularly acute, with property values in some areas remaining below 2016 levels, discouraging moves. Only 25% of 2024 London sellers had bought within the last five years, compared to 34% nationwide.
“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.”
This article was first published on YourMoney.com‘s sister site, Mortgage Solutions. Read: Weaker house price growth sees seller gains fall to pre-pandemic levels – Hamptons
