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Did You Sell Your Home Last Year? You Might Have Made a Profit of £100,000

A row of terraced houses in Cardiff against a blue sky backdrop
Author: Samuel Beckingham
Updated: Jan 24, 2024
4 minutes read

According to data from Hamptons, homeowners across England and Wales who sold their property in 2023 managed to earn an average profit of £102,000. This is despite house prices having fallen across the last 12 months.

Price Growth

The data from Hamptons has shown that a strong period of price growth over the last 20 years has helped sellers amidst the backdrop of falling house prices. This money has either been used as a profit or to help towards their next property purchase.

Both Nationwide and the Office for National Statistics (ONS) observed a deprecation of house prices. Nationwide noted a 1.8% drop over the course of 2023, while the ONS saw values fall by 2.1% in the year to November.

Hamptons Data

When looking at Land Registry documents, the estate agents noticed that on average, households in England and Wales made a profit of £102,650 by selling in 2023. This covered anyone who bought a property within the last 20 years. In other words, a profit of 48% was seen compared to what was paid. In total, 93% of homes have been sold for more than they were paid for.

Typically, homes are only owned for less than 9 years before being sold on. What Hamptons is quick to point out is that most of the profit is reinvested back into the housing market, so these funds aren’t really seen in the form of actual cash. Thanks to historic price growth, movers have been able to use funds to put towards moving costs.

Pandemic Reversal

During the height of the pandemic, where remote working became part of everyday life, there was an increase in people moving away from the city to the countryside. London wages could still be earned whilst in pastoral comfort. However, Hamptons has seen an increase in sellers moving after only 2 years.

Roughly 8% of anyone who bought a home in 2021 sold it last year. There was a much higher percentage of these located in the countryside, small towns or suburbs, pointing to a reversal of a pandemic move. This contrasts with percentages of 5% in 2022 and 6% in 2019 who had bought and then sold 2 years later.

Welsh Winners

Thanks to lower price growth that’s been seen in London, Wales now has an edge over the capital. Last year, houses sold for 53% more than their purchase price in Wales. In London, this averaged 51%.

The South Wales Valleys saw some of the biggest percentage growths for profits. Merthyr Tydfil saw 69%, while Rhondda Cynon Taff had 65%. Even some of the lowest percentages were way over the Welsh average, with Blaenau Gwent seeing a 67% increase. In the north east of England, however, sellers only saw an average profit of 33%.

Despite Hamptons analysing house price data over the last 20 years, there is potential for these gains to be underrepresented. Anyone who has owned for longer than this time will likely have seen even more growth in their house price. In actuality, the £102,000 figure could be much higher.

Moving or Improving?

It’s often considered whether you could improve your circumstances by moving or improving your home. At Home Improvement Quote Today, we can help you add value to your property in a few different ways.

Conservatories

A well-built conservatory that complements the style of your home is sure to add a decent return to your property. Anything from 5–10% could be added to a home’s value with a conservatory.

Find out how much a new conservatory would cost in your area.

Garage Doors

It may seem like a strange thing to say, but a new garage door could do wonders for your current home. Depending on the style and material, you could see up to 5% added. Some garage doors add more value than others, so it’s worth seeing what’s available.

Resin Driveway

Though it is an initially high cost, the value a resin drive could add to your home might offset this. With a whole multitude of colours that can add kerb appeal to your property, this could be all your home is missing.