The Covid-19 pandemic triggered unprecedented demand for homes. As a result, the average value of all UK homes rose by £48 a day on average.
Our analysis of property sales in 2022 reveals that the majority of homeowners sold at a gain, making £67,000 on average. It typically takes 7 years for house prices to increase this much.
Sellers of large and detached homes make the largest gains
Sellers of detached houses capitalised on the ‘race for space’ triggered by the pandemic.
In 2022, the average detached property sold for a profit of £118,000 more than the price initially paid for it by the owners.
Very large houses, with 5 bedrooms or more, also attracted favourable offers in 2022. On average, such properties sold for £205,000 more than what the owners initially paid for them.
| Property type | Avg. profit from sale in 2022 |
|---|---|
| Detached house | £118,475 |
| Semi-detached house | £73,000 |
| Terraced house | £59,950 |
| Flat | £30,000 |
The regional view
Despite sluggish house price growth in the capital in recent years, the average profit from a house sale in 2022 reached £120,000, largely due to higher house prices in London.
Homeowners in the capital also tend to stay in their homes for a longer, so those selling have usually accumulated gains over a larger period of time than those selling outside of the capital.
Sellers in the North (N) and North West (NW) London postcodes made the largest gains, with the average sale generating a profit of over £140,000.
In contrast, property sales in more affordable regions in the North of England and Wales generated lower profits for sellers. Homeowners selling in the North East, for instance, made only £30,000.
Sellers in Sunderland and Durham saw the lowest profits from the sales of their homes - less than £27,000 on average.
| Area | Avg house price | Highest property gains | Avg gains (2022) | Lowest property gains | Avg gains (2022) |
|---|---|---|---|---|---|
| London | £522,000 | West London - W | £145,000 | Dartford - DA | £94,625 |
| South East | £393,200 | Slough - SL | £113,000 | Oxford - OX | £70,500 |
| East | £342,200 | St Albans - AL | £117,000 | Peterborough - PE | £65,000 |
| South West | £315,300 | Bristol - BS | £95,005 | Plymouth -PL | £65,000 |
| East Midlands | £227,300 | Leicester - LE | £74,050 | Derby - DE | £54,500 |
| West Midlands | £224,100 | Coventry - CV | £71,000 | Stoke-on-Trent - ST | £47,000 |
| Wales | £201,500 | Llandrindod Wells -LD | £67,000 | Swansea - SA | £55,000 |
| North West | £190,900 | Stockpot- SK | £81,000 | Carlisle - CA | £30,000 |
| Yorkshire & The Humber | £183,300 | Harrogate - HG | £65,000 | Hull - HU | £39,950 |
| North East | £137,300 | Newcastle - NE | £33,000 | Durham - DH | £26,000 |
Selling at a loss
In 2022, only a few homeowners sold at a loss: 3% according to our analysis. The majority of these sellers represent a very narrow segment of the market.
Those affected were mainly sellers of leasehold flats in London and the South East who purchased their properties during or after 2016.
Those sellers lost £15,000 or 7% of the initial buy price on average.
What are we expecting to see this year?
The market is going through a soft re-pricing process with modest quarterly price reductions across all regions.
If you are looking to sell this year, it’s important to make sure that your pricing matches buyers' expectations.
If you are serious about moving, you simply cannot afford to over-price your home.
Buyers currently in the market are searching for good value for money and this will drive sales in the markets with the best affordability.
As demand shifts in favour of flats and smaller houses, sellers of these types of properties will now stand a better chance of crystalising their gains compared to previous years.
That said, the majority of those selling in 2023 would have lived in their homes for 21 years. That means that even if house prices fall, they will still be monetising their historical gains.
At the end of the day, how much people make from their home when they move unlocks their next purchase, whether they're looking to move to a bigger property, release equity or move to a nicer home in a better area.
Speak to a local agent to find out what you can sell for