UK homeowners sitting on up to £80,000 in property value gains
-
Analysis from Zoopla reveals that homeowners who purchased their existing home within the last twenty years are sitting on an average of £80,000 in property value gains
-
In comparison, UK homeowners who sold their home in the last 12 months made on average £65,000
-
Outside of London, the South East saw the highest proportion of homes ( 70 per cent) increase in value by £65,000 or more
-
80 per cent of homes in the Cotswolds and Richmond upon Thames have increased in value by £65,000 in the last twenty years
-
Zoopla’s Equity Calculator is available to help homeowners understand how to unlock their next home move
UNDER EMBARGO UNTIL 00.01 Friday, 18 OCTOBER, LONDON: For homeowners, property value gains is one of the key factors considered when deciding whether or not to move. Latest analysis of property transaction data by Zoopla, one of the UK’s leading property websites, reveals that homeowners who purchased their current home within the last twenty years are sitting on an average of £80,0001 in property value gains, with 60 per cent seeing gains of £65,000 or more. This is due in part to house price growth of 78 per cent2 over the last 20 years. UK homeowners who sold their home in the last 12 months, made on average £65,0003.
In London 71 per cent of homeowners are currently sitting on gains larger than those released by the average UK homeowner who sold their home in the past 12 months (£65,000). Outside of the capital, the South East saw the highest proportion of homes (70 per cent) increase in value by £65,000 or more due to higher property values in the region and above-average house price growth over the last two decades. On the other end of the scale, average gains in the North East and Scotland are much lower, typically sitting between £40,000 and £45,000. This is due to lower house prices as well as modest 20 year house price growth, especially during the period that followed the global financial crisis.
However, homeowners do not necessarily need to reside in their home for decades at a time in order to benefit from substantial gains. Nearly half (48 per cent) of homes purchased in the last ten years have increased in value by over £65,000, increasing to 55 per cent in Southern England. In the South West, 58 per cent of homes experienced gains of over £65,000, the highest proportion in the UK, followed by the South East (57 per cent) and the East of England (53 per cent).
Table 1: Share of homes by region that have gained £65,000 since last purchase
|
Region |
% of homes with value gains of £65,000 or more |
Median unreleased gains (£) |
Average house price (Aug 2024) |
|
London |
71% |
£130,000-£140,000 |
£537,400 |
|
South East |
70% |
£110,000-£120,000 |
£388,000 |
|
South West |
69% |
£100,000-£110,000 |
£315,400 |
|
East of England |
68% |
£100,000-£110,000 |
£337,100 |
|
West Midlands |
64% |
£85,000-£90,000 |
£232,900 |
|
East Midlands |
63% |
£80,000-£85,000 |
£230,100 |
|
Wales |
58% |
£70,000-£75,000 |
£205,800 |
|
North West |
53% |
£60,000-£65,000 |
£198,100 |
|
Yorkshire and The Humber |
50% |
£60,000-£65,000 |
£188,700 |
|
Scotland |
35% |
£40,000-£45,000 |
£165,300 |
|
North East |
27% |
£40,000- £45,000 |
£143,400 |
|
UK |
60% |
£80,000-£85,000 |
£267,100 |
Source: Zoopla Research
High-value areas and commuter towns see the largest gains
Homes in high value areas and commuter hotspots have seen the largest property gains in the last twenty years, with 80 per cent of homes in the Cotswolds increasing in value by more than £65,000. Richmond, often viewed as one of London’s highly desirable suburbs due to its unique atmosphere, plentiful green spaces and fast connections to central London, also saw 80 per cent of homes increase in value by £65,000 or more.
Redbridge, Waltham Forest, Barking and Dagenham, some of the more affordable suburbs in the East of the capital have seen 77 per cent of homeowners gain £65,000 or more since their last purchase, as Londoners look increasingly to balance their budgets with their commuting needs.
Traditional commuter towns near London also saw over three quarters of homeowners gaining over £65,000 in property value since they last bought their home. This includes St Albans (78 per cent), Wokingham (78 per cent) and Sevenoaks (77 per cent). All three locations provide access to Central London via train in 40 minutes or less
Trafford in the North West, also saw significant gains of 78 per cent due to an increase in house prices within the area.
Table 2: Largest gains by local authority
|
Local Authority |
Region |
Gained £65k |
Median gains in 20 years |
Average house Price (Aug 2024) |
|
The Cotswolds |
South West |
80.0 per cent |
£162,300 |
£464,200 |
|
Richmond upon Thames |
London |
79.8 per cent |
£225,100 |
£754,100 |
|
Redbridge |
London |
79.4 per cent |
£174,600 |
£466,500 |
|
Three Rivers |
East of England |
79.0 per cent |
£187,100 |
£625,600 |
|
St Albans |
East of England |
78.4 per cent |
£197,300 |
£574,000 |
|
Wokingham |
South East |
78.3 per cent |
£162,500 |
£503,800 |
|
Trafford |
North West |
78.3 per cent |
£159,800 |
£345,100 |
|
Barking and Dagenham |
London |
78 per cent |
£129,900 |
£335,200 |
|
Bath and North East Somerset |
South West |
77.9 per cent |
£144,100 |
£409,900 |
|
Embridge |
South East |
77.7 per cent |
£206,000 |
£716,000 |
|
Monmouthshire |
Wales |
77.5 per cent |
£129,600 |
£330,500 |
|
South Gloucestershire |
South West |
77.4 per cent |
£131,900 |
£348,000 |
|
Sevenoaks |
South East |
77.3 per cent |
£170,500 |
£535,800 |
|
Merton |
London |
77.3 per cent |
£180,400 |
£556,600 |
|
Waltham Forest |
London |
77.1 per cent |
£191,200` |
£492,900 |
Source: Zoopla Research
Izabella Lubowiecka, Senior Property Researcher at Zoopla commented: “Millions of UK homeowners are sitting on tens of thousands of pounds in property value gains since they moved into their current home, despite recent falls in house prices. Whilst house prices fell or grew modestly in London in recent years, there are areas, such as Richmond, where the market has fared much better. In the North West, Trafford has seen similar growth, due in part to its close proximity to Manchester and popularity with families looking to move out of the city.
“For many, meaningful capital gains can provide important financial support for their next home move. Those thinking of selling should get their property valued sooner rather than later, they never know, they could be sitting on a small fortune.”
Zoopla’s Equity Calculator is available to help homeowners understand how to unlock their next home move.
You May Also Enjoy
Commonhold White Paper – Thoughts from the Industry
Greenpeace Ruling Exposes UK Government Policy
Rightmove commentary on mortgage market + weekly tracker
Government plans to ban new leasehold flats
Bank of England Money and Credit Report – January 2025
