Sunday, January 16, 2022

The average home sells for almost £100,000 more than it was bought

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Those who sold family homes last year have gained an average of £151,840 compared to the price at which they bought

Those who bought their home in the last 20 years sold it for £95,360 more than they paid on average, according to estate agent Hamptons.

The average home seller in England and Wales sold his property for around £95,000 more than he paid for it last year, according to estate agent Hamptons.

This was an increase from an average gross profit of £83,550 in 2020. Those selling single-family homes last year gained an average of £151,840, while those selling apartments typically made £54,690 in 2021.

One in five home sellers (19 percent) made a loss on their property in 2021, compared to just 4 percent of single-family home sellers, Hamptons said.

London sellers continued to make the biggest profits, but weaker price growth in the capital meant they grossed less than £200,000 last year for the first time since Hamptons’ records began in 2015.

People are also moving more frequently, possibly prompted by lifestyle changes caused by the pandemic.

Nearly two-thirds (64 percent) of sellers sold their home within a decade last year, compared to 59 percent of sellers in 2019.

Aneisha Beveridge, director of research at Hamptons, said: “The rapid growth in home prices over the past 18 months has pushed up the amount of money homeowners have made.

“While larger property owners have benefited from buyers looking for more space, apartment owners have seen weaker returns.

“Home price gains are primarily driven by two factors – the length of time people have owned their home and when in the real estate cycle they bought it.

“Typically, homeowners who have owned their homes longer have experienced greater price growth and therefore greater profits — although most of these profits are never seen by sellers as they are reinvested in the property market on their next purchase.”

Here are the average seller gains among those who sold their homes in the last year, according to Hamptons:

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