Looking to move in 2025? Don’t expect to be making huge profits from selling up – as a new study has found that in 2024, the average seller across England and Wales made just £91,820 when selling their property.
That might sound like a decent amount, but this translates to a 42% gross profit – which is actually the lowest return since records began in 2015.
In the last two years, the typical seller has actually made a profit loss of £21,110, as the 2022 record was set at £112,930.
It’s also bad news for the Big Smoke, as sellers in London saw their average profit fall below £200,000 for the first time since 2015.
In fact, they’re now just as likely to sell for a loss than those in the North West, with the average percentage difference between the sale and purchase price being 44% in both locations.
However, it’s not bad news for everyone – as there are still sellers making considerable profits when choosing to sell up. And, it’s worth noting that depending on when you bought your property, an average profit of £91,820 might actually be more positive than it seems.
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Already paid off the mortgage and bought at a time when prices were considerably lower? Congratulations – you’ve pocketed almost £100,000 extra (excluding any stamp duty and solicitors’ fees, obviously).
Elsewhere, the good people of Merthyr Tydfil in Wales, around 23 miles north of Cardiff, made a profit of 68% after 9.4 years of ownership when choosing to sell, as per the research from Hamptons, with the average difference between the sale and purchase price coming in at £59,590.
In second place was Shepway, a suburb of Maidstone in Kent, where buyers pocketed an average of £128,500 after 11.3 years of ownership – an average of 64%.
Surprisingly, despite the fact that typical profits have fallen below £200,000 in London, two locations in the capital still made the list of the top 10 local authorities where sellers made the largest gains in 2024.
However, it’s worth noting that in 2019 and 2020, the entirety of the top 10 were comprised of London locations.
In 2024, in sixth place overall was Barking and Dagenham, where sellers are typically making £112,520 after 10.7 years of living there – equating to a 60% profit.
And Waltham Forest, which is home to areas like Walthamstow, Leyton and Chingford, saw the largest cash profit of every area in the top 10 at £178,750 (59%).
This comes as little surprise, considering that areas like Walthamstow in particular have seen considerable regeneration over the past few years – attracting increasing interest from young families.
According to statistics from Rightmove, prices here now average £559,013, marking an increase of 4% from 2023.
Adding this feature to your home could bag sellers £130,000 more
If you’re considering putting your house on the market, there’s one unexpected – and lucrative – addition that could bag sellers £100,000 more.
Research shows that homeowners with an annexe can expect to sell for £129,000 more than the average. This translates to 20.7% above the asking price of similar homes without this highly coveted feature.
Of course, an annexe isn’t quite as easy as added an extra coat of paint or switching up your light fixures.
These extensions, which are usually a smaller building that’s either directly joined or on the same grounds as a main building, are intended to provide extra space or accommodation.
Commonly, they’re used to give a family member who still lives at home – like a grandparent or adult child – extra space but with a hint of independence.
So, what do low profits mean? According to Hamptons’ research, high transaction costs and weak house price growth mean that people just aren’t moving as often – and this has particularly proven to be the case in London.
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‘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,’ Aneisha Beveridge, head of research at Hamptons, says.
‘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.’
The top 10 local authorities where 2024 sellers made the largest profit, according to Hamptons
Merthyr Tydfil, Wales (average % difference between sale and purchase price: 68%, or £59,590)
Shepway, South East (64%, £128,500)
Trafford, North West (63%, £146,240)
Blaenau Gwent, Wales (62%, £44,530)
City of Nottingham, East Midlands (60%, £70,200)
Barking and Dagenham, London (60%, £112,520)
Leicester, East Midlands (60%, £84,100)
Rhondda Cynon Taff, Wales (60%, £53,130)
Oldham, North West (59%, £64,800)
Waltham Forest, London (59%, £178,750).
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