97% of sellers made a profit from the sale of their property in 2022, with the average home earning £67,000.
- The average capital gain made from a property sale in 2022 was £67,000
- Sellers of larger homes made bigger gains than those of smaller properties
- Despite sluggish house price growth in recent years, sellers in London made the most money from the sale of their home, earning £120,000 on average
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.
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.
|Avg. profit from sale in 2022
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.
|Avg house price
|Highest property gains
|Avg gains (2022)
|Lowest property gains
|Avg gains (2022)
|West London – W
|Dartford – DA
|Slough – SL
|Oxford – OX
|St Albans – AL
|Peterborough – PE
|Bristol – BS
|Leicester – LE
|Derby – DE
|Coventry – CV
|Stoke-on-Trent – ST
|Llandrindod Wells -LD
|Swansea – SA
|Carlisle – CA
|Yorkshire & The Humber
|Harrogate – HG
|Hull – HU
|Newcastle – NE
|Durham – DH
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.
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.