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Homeowners made less on sold properties in 2023

Homeowners who bought property in England and Wales in the past 20 years before selling in 2023 made less money than last year.

Research from Hamptons showed they made an average of £102,650, down from £112,930 in 2022 – indicating that the market has cooled down.

Aneisha Beveridge, head of research at Hamptons, said: “Despite falling house prices last year, 93% of households still sold their home for more than they paid, netting themselves just over £100k on average.

“These proceeds are mostly reinvested back into the housing market and go towards the purchase of another home, so they’re rarely realised in cash terms.

“However, the numbers illustrate how the scale of historic price growth sheltered movers last year, freeing up cash to cover moving costs.”

Last year post-pandemic movers had second thoughts about their home, as 8% of 2023 sellers bought in 2021. This group were more likely to sell a home in the suburbs or countryside, making a £56,000 or 23% average gross profit.

Beveridge added: “Double-digit house price increases since Covid have meant households moving within two years can achieve a higher price than they paid.

“Historically these are people moving due to a change in circumstances. However, the spike in the share of households moving within two years goes beyond that and suggests an unwinding of ’the race for space’.

“Most of these sellers are selling larger homes in the country, often in favour of a move back to the suburbs or city.”

Sellers in Barking and Dagenham saw the biggest percentage gains (74%). 12 of the 15 local authorities where sellers saw the largest gains were outside London, up from six before the pandemic in 2019.

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