In 2023, UK homeowners who sold their properties experienced a decrease in average profit compared to 2022, according to recent data.
Analysis from Hamptons found that those who bought within the last 20 years and sold in 2023 gained £102,650 on average, which is 48% more than their purchase price. This figure represents a decrease from the record £112,930 gain in 2022.
The data shows a shift in the housing market dynamics last year. Post-pandemic, 8% of 2023 sellers had bought their homes in 2021, mainly selling properties in the suburbs or countryside for an average gross profit of £56,000 or 23%.
Interestingly, slower house price growth in London in recent years has led to sellers in Wales making larger percentage gains than those in London. In Barking and Dagenham, sellers saw the biggest percentage gains at 74%, with most of the top 15 local authorities for seller gains being outside London.
Collectively, sellers in 2023 realised a total value uplift of £103bn, but the average gross profit fell by £10,300 or 9% compared to those who sold in 2022.
Despite a slight drop in house prices last year and more households moving home sooner than usual, 93% of households sold their property in 2023 for more than they paid for it, having owned it for an average of 8.9 years.
Aneisha Beveridge, head of research at Hamptons, said: “Despite falling house prices last year, 93% of households still sold their home for more than they paid, netting themselves just over £100k on average.
“These proceeds are mostly reinvested back into the housing market and go towards the purchase of another home, so they’re rarely realised in cash terms.
“However, the numbers illustrate how the scale of historic price growth sheltered movers last year, freeing up cash to cover moving costs.”
