Average house price sale gains breach £100k for the first time

Those who bought a property in England and Wales within the last 20 years and sold it in 2022 made an average gross profit of £108,000.
According to research from Hamptons double digit house price growth last year meant homeowners cashing in made record gains. It found the average sale was 52% more than the original purchase price.
In the West Midlands the average was £80,570 gross profit, a 49% uplift.
Elsewhere the study found in 2021 the average homeowner in 116 local authorities in England and Wales made a six-figure gain when selling their home. Last year it increased to 173 (52%) of all local authorities, of which the majority – or 87% – were located in the south of England, down from 94% in 2021.
Hamptons suggests 2022’s record breaking gains were a result of sales of larger homes. However, it says most of the profits are not seen by sellers as they are reinvested back into the housing market.
The analysis also found detached homes made up 19% of sales last year, yet accounted for 35% of the properties selling for six figure gains.
In 2022, the average detached home sold for £186,940, 61% more than its original purchase price, and 3.3 times the average gain made on a flat (£57,080).
While the percentage gain made by house sellers increased between 2021 and 2022, weaker house price growth meant it stayed the same for flat sellers.
The average house seller in 2022 made a 57% gain on their home up from 51% in 2021, compared to 29% for flat owners in both 2022 and 2021.
Sheldon Bosley Knight’s head of residential sales and marketing, James Morton said: “Following last autumn’s mini budget, the cost of living crisis and the rise in interest and mortgage rates, there will undoubtedly be some correction in the market this year.
“Even so, it is likely most sellers will still see a gross profit should they choose to list their properties on the market. Prices have risen considerably over the last decade particularly here in the Midlands and for those wishing to sell, substantial gains can certainly still be made.
“That said, sellers should always be realistic in terms  of their asking prices. They will also need to ensure they stay ahead of the competition in terms of how their homes are presented as well as looking at improving the energy efficiency of their homes which is of growing interest to buyers.
“As ever, at Sheldon Bosley Knight our teams can offer expert advice and help for anyone considering selling their property this year. Please pop in to one of our branches or ask for a no obligation valuation.”