Homeowners selling detached properties over the last 18 months have pocketed more than three times the gains of flat owners, new figures from Zoopla reveal.
On average, sellers of detached homes made £122,500 in capital gains, a 45% increase on their original purchase price. In contrast, flat owners saw more modest returns, averaging £27,000, or a 15% gain. The typical seller had owned their property for nine years.
Zoopla notes that the average capital gain on detached homes is 70% higher than the national average. Semi-detached homes also performed well, delivering average gains of £80,000, a 44% increase in value.
Across all types of property across England and Wales, sellers generated an average gain of £72,000, a 38% rise in value since they bought their home.
Richard Donnell, Executive Director at Zoopla, said: “British homeowners are sitting on sizable capital gains from years of historic house price inflation which varies widely by geography and property type. The scale of gains from historic price inflation is unlikely to be repeated in future with lower levels of annual price inflation in more recent years than in the past.”
London sellers lead the pack
Higher property values in the capital and South East mean that sellers in these areas make the biggest gains when selling, with the average seller in London making £130,000, equivalent to 35% of the purchase price. This compares to an average gain of £37,200 for sellers in Scotland and £35,000 unlocked by the average seller in the North East.
Those who’ve stayed in their homes for longest have seen the greatest gains. The average seller in London who stayed in their home for 20 to 25 years has unlocked an average of £361,500 in capital gains, the highest across Great Britain, and more than the average price of a typical home in the UK.
Mr Donnell cautioned sellers not to get carried away by past performance, emphasising the need for realistic pricing in a competitive market. He said: “Estate agents currently have the highest stock of homes for sale in over seven years. This is boosting choice for buyers meaning it is very important that sellers are realistic over how they set their asking price. Homes that attract limited interest and require a price reduction can take twice as long to sell.”
