Blow to British homeowners as housing profits suffer biggest decline in a decade

Homeowners in England and Wales saw their average property profits drop significantly last year, with sellers making £91,820 more than they originally paid for their homes.

While this is still a sizeable profit, it marks a substantial decline from the record high of £112,930 seen in 2022, according to new figures from Hamptons.

The average profit fell by £10,830 over the past year, though more than nine out of 10 homeowners still managed to sell their properties for a profit. In percentage terms, sellers’ returns decreased from 48 per cent in 2023 to 42 per cent in 2024, highlighting a cooling property market.

Those who sold after owning their homes for 20 years saw their property values rise by 83 per cent, significantly outperforming those who bought more recently.

Profit return on properties in each region

North East: 30 per cent gain, 86 per cent sold for more after a 8-year ownership

Yorkshire and the Humber: 40 per cent gain, 92 per cent sold for more after a 8.9-year ownership

South East: 41 per cent gain, 92 per cent sold for more after a 9.1-year ownership

South West: 41 per cent gain, 93 per cent sold for more after a 8.5-year ownership

West Midlands: 42 per cent gain, 92 per cent sold for more after a 8.6-year ownership

East of England: 42 per cent gain, 92 per cent sold for more after a 8.9-year ownership

East Midlands: 44 per cent gain, 93 per cent sold for more after a 8.7-year ownership

London: 44 per cent gain, 86 per cent sold for more after a 9.6-year ownership

North West: 44 per cent gain, 92 per cent sold for more after a 8.8-year ownership

Wales: 48 per cent gain, 93 per cent sold for more after a 8.7-year ownership

Head of research at Hamptons, Aneisha Beveridge said: “Despite slower house price growth in recent years, 91 per cent 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, have made this more challenging.”

The head of research said people have generally experienced a lower price compared to those sold during the pandemic with households having to battle with higher mortgage and transaction costs, such as stamp duty, making it more costly to move.

“Property prices rose 43 per cent across the country between 2015 and 2024, compared to 64 per cent between 2013 and 2022, just before mortgage rates spiked,” she said.

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“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.”

Despite this reduction in profits according to the latest Halifax house price index, UK house prices ended 2024 with annual growth of 3.3 per cent.

The typical UK property now costs £297,166, with the annual growth rate showing a slight decline from November’s figure of 4.7 per cent.