The majority of homeowners who decided to sell their properties in 2023 found themselves on the fortunate side of the fence. According to comprehensive data from Zoopla, a leading property portal, an impressive 93% of home sales last year resulted in a profit, with sellers pocketing an average gain of £74,000.

Zoopla’s analysis, based on Land Registry entries over the past 12 months for England and Wales, reveals that despite a general decline in house prices, the property market has been favorable for the vast majority of sellers. In contrast, a mere 10% of homes sold last year did so at a loss, with the average shortfall reaching £17,000.

Regional Highlights

The windfall from property sales was not uniformly distributed across the country but was instead concentrated in the more affluent regions. London topped the charts with a median gain of £137,000 per sale, translating to an annual profit of £15,100 for homeowners, reflecting the high demand and value of properties in the capital. The South East and East of England followed, with significant gains of their own.

Property Type Profits

The type of property sold had a major impact on the gains realised by sellers. Detached homes and bungalows led the charge, with average gains of £137,000 and £102,000, respectively. In contrast, flats experienced a more modest increase, averaging just £30,000 in profit, likely due to slower price growth for this category over recent years.

Timing and Location

Zoopla’s findings underline the significance of timing and location in the real estate market. Homeowners who purchased their properties post-2007 financial crisis saw larger gains, benefiting from the subsequent recovery and growth in property values. London stands out, with long-term homeowners often making gains exceeding £250,000.

Outside the capital, the rewards were also substantial for those who bought their homes 10-15 years ago, highlighting the regional disparities in property market dynamics.

The Future Outlook

Izabella Lubowiecka, a senior property researcher at Zoopla, notes the importance of these gains for homeowners, “Most homeowners who sold in 2023 made meaningful capital gains which, for many, will have provided important financial support for their next home move. It’s positive news, considering house prices posted modest price falls for the first time in 11 years. Lower levels of house price growth mean the potential gains in future are unlikely to be as strong as in the past which is why more households are looking further to find their new home and seek better value for money.”