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The amount of money sellers make on their homes is shrinking, according to a new data analysis by real estate agent Hamptons.
Last year, the average homeowner in England and Wales sold their home for £91,820 more than they paid for it, having owned it for an average of 8.9 years.
This figure has decreased by £10,830 since 2023 and is down from a peak of £112,930 in 2022.
Despite smaller price increases last year, 91 percent still sold their home for more than they paid.
In percentage terms, property yields have fallen to the lowest level since at least 2015, when Hamptons records began.
Last year, the average seller in England and Wales sold their home for 42 per cent more than they paid, up from an increase of 48 per cent in 2023.
Smaller profits: The average difference between asking and buying prices in England and Wales has narrowed in recent years.
Real estate gains peaked in 2016, when the average home sold for 60 percent more than its purchase price.
Most of these 2016 sellers bought just after the financial crisis, from which house prices generally recovered quickly, particularly in the south of England.
“These incomes typically drive moving up the property ladder,” said Aneisha Beveridge, head of research at Hamptons.
‘However, smaller and slower capital gains in recent years, particularly for flat owners, have made this more challenging.
“On top of this, households have had to deal with higher mortgage and transaction costs such as stamp duty, making moving more expensive.”
Homeowners in London suffer the biggest falls
While sellers in all regions of the UK saw their returns fall between 2023 and 2024, Londoners were among the hardest hit.
The average seller in 2024 in London saw the value of their property increase by £172,350 since purchasing it, £31,840 less than those who sold in 2023.
This was the first time property capital gains in the capital fell below £200,000 since at least 2015.
In percentage terms, the average house in London sold for 44 per cent more than its purchase price, a figure that has been falling since peaking at 100 per cent in 2016.
This is not surprising given how stagnant London property prices have been since 2016.
Most of the progress made by Londoners came in the years immediately following the 2008 crisis.

Earning less: London sellers saw their average profit fall below £200,000 for the first time. They are now just as likely to sell at a loss as sellers in the Northeast.
Between April 2009 and July 2016, the average value of a property in London increased by 94 per cent, from £245,000 to £475,000, according to Land Registry data.
However, since then, the average property in London has only increased by 9 per cent to £519,000 in November 2024. Flats and maisonettes in the capital have only increased by 3 per cent on average during that time.
Beveridge said: ‘In London the problem is particularly acute, with property values in some areas remaining below 2016 levels, discouraging moves.
‘Only a quarter of 2024 London sellers had bought in the last five years, compared to more than a third nationally.
‘Until house prices recover or transaction and mortgage costs decrease, homeowners are likely to stay there longer.
“Landlords typically need to pump in thousands of pounds out of their own pocket to make a move financially viable, which often ruins many potential sales.”

Average Seller Profit by Duration of Ownership: Since property prices have increased over the long term, those who have owned their homes longer generally made higher profits.
Welsh sellers make the highest gross profits
Hamptons says returns are now being distributed more evenly across regions.
In 2016, 29 per cent of homes that sold for more than £100,000 more than the purchase price were in London, a figure which has fallen to 18 per cent in 2024.
Meanwhile, the proportion of homes making six-figure profits located in the Midlands and the north of England rose from 17 per cent in 2016 to 29 per cent in 2024.
In percentage terms, for the third year in a row, home sellers in Wales made the highest gross profits, with the average home selling in 2024 for 48 per cent more than the purchase price.
Merthyr Tydfil replaced Barking and Dagenham as the local authority where sellers made the biggest percentage gains nationally in 2024.
Here, the average seller received 68 percent more for their home in 2024 than they paid.
Only two London boroughs, Barking & Dagenham and Waltham Forest, made the top 10 list in 2024, compared to the top 10 in the capital in 2020, 2019 and 2018.
Londoners are now just as likely to suffer a loss as those selling a property in the North East.
In 2024, 14 per cent of London sellers sold their property for less than they originally paid, the same proportion as in the North East.
In 2016, just 2 per cent of London sellers sold at a loss, compared to 32 per cent in the North East.
The majority of Londoners who sold at a loss in 2024 were selling properties in central London, having bought in the last nine years.
Those selling in Tower Hamlets were more likely to sell their property for less than they paid, with 28 per cent doing so, despite the average seller in the area making a gross profit of £77,960.
Houses work better than apartments
Home sellers made more than double the profits recorded by those who sold a flat last year.
The average home sold in 2024 for 47 percent more than its purchase price, after being owned for 9 years on average.
Meanwhile, the middle apartment sold for 23 percent more, having been purchased 8.8 years ago.
“The lower growth in flat prices since the pandemic means that house sellers have experienced greater price growth in the last five years than flat sellers have experienced in the last 10 years,” Beveridge added.
‘The typical home seller who sold in 2024, having bought five years ago, made a gross profit of 31 per cent, compared to a 30 per cent profit for the typical flat seller who bought 10 years ago.
‘This weaker capital growth has limited the ability of flat owners to move. Only 32 per cent of flat owners who sold in 2024 moved within five years, compared to 40 per cent who sold in 2019 having owned that property for the same time.

Home sellers made more than double the profits of those who sold an apartment last year.
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