Profitability in the UK house market remains robust; however, several emerging factors are beginning to reshape the landscape of property sales. Rising mortgage rates, coupled with escalating transaction costs, are creating a more challenging environment for both buyers and sellers. These shifts are not only affecting market dynamics but are also prompting many homeowners to reconsider their financial strategies and long-term plans. With affordability becoming a growing concern, the market is witnessing a period of reflection and adjustment as stakeholders navigate this evolving terrain.
House Sellers Profit as Market Slows
In 2024, property sellers across England and Wales continued to benefit from significant financial gains, with the average gross profit reaching £91,820, according to research conducted by Hamptons. This figure represents a 42% increase from the initial purchase price but marks the lowest return since records began in 2015. While nine out of ten households achieved a profit, the slowing pace of house price growth and increasing financial pressures have started to temper the benefits once associated with property sales.
The study revealed a growing discrepancy in the kinds of properties that were sold. The average profit for homeowners selling apartments was only 23%, whereas the average profit for homeowners selling houses was 47%. For the first time in almost ten years, the average gross earnings of the capital, which has historically been the most profitable area, dropped below £200,000. According to experts, the market’s previously strong expansion is being slowed by economic reasons including high mortgage rates and higher stamp duty, which are impacting sellers’ selections.
Aneisha Beveridge, head of research at Hamptons, explained: “Until property prices recover, or transaction and mortgage costs decrease, homeowners are likely to stay put for longer.”
Regional Variations Highlight Uneven Market Gains
A closer look at regional data reveals significant differences in the profitability of property sales in 2024. While London retained its position as the highest absolute profit generator at £172,350, regions such as Wales posted the strongest percentage gains, with sellers making 48% more than their original purchase price. Conversely, the North East saw the lowest average profit, with gains of just 30% and a modest cash return of £38,220.
In Wales, the local authority of Merthyr Tydfil led percentage gains, with sellers receiving 68% more than they originally paid. Long-term property ownership consistently proved more lucrative, with sellers who held their homes for 20 years achieving an average profit of 83%. In contrast, those who purchased properties just five years ago reported a lower average return of 27%. Compared to 2019, when long-term homeowners enjoyed a 220% increase, recent sellers have felt the effects of subdued price growth and rising costs. Below is a summary of 2024 seller gains by region:
| Region | % Gain | Cash Gain (£) | % Sold for More | Average Ownership (Years) |
|---|---|---|---|---|
| Wales | 48% | £66,710 | 93% | 8.7 |
| North West | 44% | £64,830 | 92% | 8.8 |
| London | 44% | £172,350 | 86% | 9.6 |
| East Midlands | 44% | £71,530 | 93% | 8.7 |
| East of England | 42% | £100,270 | 92% | 8.9 |
| West Midlands | 42% | £72,980 | 92% | 8.6 |
| South West | 41% | £96,090 | 93% | 8.5 |
| South East | 41% | £116,560 | 92% | 9.1 |
| Yorkshire and the Humber | 40% | £60,380 | 92% | 8.9 |
| North East | 30% | £38,220 | 86% | 8.0 |
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