Home Finance
Average property gain of over £100k
An overwhelming majority of households (93%) sold their homes for more than their initial purchase price, according to recent research2. People who bought properties within the last two decades saw an average increase of £102,650 when selling up in 2023, marking the second-highest recorded figure.
In total, sellers in 2023 collectively gained £103bn in value compared to their purchase prices. However, the average gross profit dropped by £10,300 or 9% compared to 2022, partly due to marginal house price decreases.
According to estate agents Hamptons, the decrease in average gains is partly due to small house-price falls last year, alongside households opting to move sooner. Aneisha Beveridge, Head of Research at Hamptons, said, “Households rarely move when they’re faced with the prospect of selling their home for less than they paid. Generally, the chances of selling at a loss peak within the first few years of ownership. But for some Londoners, that stretches back to when parts of the market peaked in 2016.”
1ERC, 2024
2Hamptons, 2024
As a mortgage is secured against your home or property, it could be repossessed if you do not keep up mortgage repayments. Think carefully before securing other debts against your home. Equity released from your home will be secured against it.
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