House sellers in England and Wales saw their average gains slip below £100,000 in 2024, research by Hamptons revealed.
The average household sold their home for £91,820 more than they paid, down from a record £112,930 in 2022.
In percentage terms, this represents a 42% gross profit, the lowest return in over a decade.
In London, the average seller’s gain fell below £200,000 for the first time since at least 2015.
Sellers are now equally likely to sell at a loss as those in the North East.
Merthyr Tydfil replaced Barking and Dagenham as the local authority where sellers made the largest percentage gains in 2024.
Only two London boroughs appeared in the top 10 list for gains, compared to all 10 being from London in both 2019 and 2020.
In addition, house sellers in 2024 experienced more price growth over the last five years than flat sellers did in the last 10 years.
High transaction costs and weak house price growth have led to fewer people moving, especially in London.
Only 25% of sellers in London had bought and sold within five years, compared to 34% nationally.
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.
Beveridge added: “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 concluded: “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.”
