92% of property sellers made a profit in 2017

29 December 2017
Image

Property sellers earned an average profit of £92,466 when selling their home in 2017, an increase from £90,227 in 2016.

According to research from estate agent Hamptons International, 92% of sellers in the UK sold their homes for a profit in 2017, a 2% improvement from 2016. This comes despite a ‘mixed bag’ for property prices in 2017. The estate agent’s figures show that every region in England and Wales saw fewer sellers making a loss on their property investment.

London sellers saw the highest gains, with one in three (33%) sellers doubling their money on property. However, London was in fact the only region where gains were lower than in 2016. Sellers in Kensington and Chelsea saw the highest gains, an average of £940,494, but this was down from an average profit of £1,060,875 in 2016. As a result, sellers in the South East were more likely to make a profit than in London, 97.6% compared to 97.4%.

Johnny Morris, research director at Hamptons International comments: “House prices have grown considerably over the nine years the average seller has owned their home. Many sellers will have added value by renovating, extending or developing but the bulk of their gains come from price growth.

“The London housing market has been cooler than the rest of the country in 2017, but London sellers still make the largest gains, by a long way. This year the average London seller bought their home nearly nine years ago and has seen its value rise by more than quarter of a million pounds. Even with slowing price growth most owners are still sitting on plenty of growth from previous years.”

See the table below for a list of regions and the average profit made when selling a property in 2017:

Read more about selling property on Moneywise. 

Comments

In reply to by anonymous_stub (not verified)

Since when has the inflationary progression of home values become known as "profit" ?Moneywise has diminished its credibility by allowing Mr Greaves' facile article to be published.. The notion of a value surplus associated with such a critical human need as housing requires a far more intellectual article than the superficial effort by Mr Greaves..

In reply to by anonymous_stub (not verified)

So all these 'Property Sellers' didn't go on to buy another property then? To make a 'profit' they would have all had to 'cash out' and not scale up, seems very unlikely. Any 'profit' would have been swallowed up the increase of cost in scaling their property up.A price increase is not the same as profit until you take the money and run!

Add new comment