Average UK house seller made £91,820 profit in 2024
Planning to move in 2025? Don’t expect a windfall from selling your property, as a new study has revealed that the average house seller in England and Wales made £91,820 in profit in 2024. While this figure may seem impressive at first glance, it equates to just a 42% gross profit – the lowest return recorded since 2015.
Over the past two years, profits have taken a significant hit. In 2022, the average seller made £112,930, meaning that sellers in 2024 have seen a substantial reduction of £21,110 in their returns.
London market struggles
The decline is particularly evident in London, where sellers saw their average profit fall below £200,000 for the first time since 2015. The capital’s housing market, once renowned for delivering eye-watering profits, is now facing considerable challenges.
Sellers in London are now just as likely to experience losses as those in the North West of England. According to Hamptons’ research, the average percentage difference between the sale and purchase price was 44% in both regions – highlighting a major shift in the capital’s property market dynamics.
Still some winners
It’s not all bad news, however. Sellers who bought their homes many years ago, when house prices were significantly lower, are still seeing strong returns. Those who have already paid off their mortgages and benefited from years of property price growth may find an average profit of £91,820 quite favourable, even after accounting for expenses such as stamp duty and solicitors’ fees.
Elsewhere, the residents of Merthyr Tydfil in Wales, located about 23 miles north of Cardiff, have enjoyed remarkable returns. Sellers in this area achieved an average profit of 68% after 9.4 years of ownership, with the average difference between their purchase and sale price standing at £59,590.
A changing landscape
The declining profits for sellers are indicative of wider shifts in the housing market. Rising interest rates and a cost-of-living crisis have made it harder for buyers to afford homes at previously inflated prices, cooling the market across the UK.
These trends are particularly noticeable in areas that historically delivered the highest returns, such as London and parts of the South East. With affordability pressures mounting, many buyers are now seeking more affordable properties further afield, which could explain why some regional markets, like Merthyr Tydfil, are seeing stronger relative growth.
What this means for sellers in 2025
If you’re planning to sell your home in 2025, it’s worth managing your expectations. The era of soaring house prices and massive profits appears to have come to an end, at least for now.
For those who purchased their homes during the property price peaks of recent years, turning a profit may prove challenging. Conversely, long-term homeowners who bought their properties decades ago – when prices were a fraction of what they are now – are more likely to enjoy substantial returns, even in the current market conditions.
Sellers should also bear in mind that the £91,820 figure is a gross profit, which does not account for the costs associated with selling a home. Stamp duty, estate agent fees, and solicitors’ fees can all eat into this profit, leaving less in your pocket than anticipated.
Regional variations
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The performance of the housing market varies widely across the UK, and sellers in certain areas continue to fare better than others. While London’s declining profits are a sign of the times, regions like Wales and parts of the North are proving more resilient.
Merthyr Tydfil’s 68% average profit demonstrates that there are still opportunities for sellers to make healthy returns, particularly in areas where prices have historically been lower, but demand remains strong.
Conclusion
The UK property market has undergone a significant shift in recent years, and 2024 has highlighted the challenges faced by sellers. With average profits at their lowest level since 2015, those looking to sell in 2025 will need to be realistic about their expectations.
That said, the housing market remains highly regional, and some areas continue to deliver strong returns. For sellers who bought at the right time and in the right place, there are still profits to be made – but the days of easy money from property sales may be behind us.
