Homeowners who purchased their current home within the last 20 years are sitting on an average of £80,0001 in property value gains, with 60% seeing gains of £65,000 or more, latest analysis by Zoopla reveals.
This is due in part to house price growth of 78% over the last 20 years. UK homeowners who sold their home in the last 12 months, made on average £65,0003.
In London 71% 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%) 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%) of homes purchased in the last 10 years have increased in value by over £65,000, increasing to 55% in Southern England. In the South West, 58% of homes experienced gains of over £65,000, the highest proportion in the UK, followed by the South East (57%) and the East of England (53%).
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
Homes in high value areas and commuter hotspots have seen the largest property gains in the last twenty years, with 80% 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% 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% 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%), Wokingham (78%) and Sevenoaks (77%). 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.
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% |
£162,300 |
£464,200 |
|
Richmond upon Thames |
London |
79.8% |
£225,100 |
£754,100 |
|
Redbridge |
London |
79.4% |
£174,600 |
£466,500 |
|
Three Rivers |
East of England |
79% |
£187,100 |
£625,600 |
|
St Albans |
East of England |
78.4% |
£197,300 |
£574,000 |
|
Wokingham |
South East |
78.3 % |
£162,500 |
£503,800 |
|
Trafford |
North West |
78.3% |
£159,800 |
£345,100 |
|
Barking and Dagenham |
London |
78% |
£129,900 |
£335,200 |
|
Bath and North East Somerset |
South West |
77.9% |
£144,100 |
£409,900 |
|
Embridge |
South East |
77.7% |
£206,000 |
£716,000 |
|
Monmouthshire |
Wales |
77.5% |
£129,600 |
£330,500 |
|
South Gloucestershire |
South West |
77.4% |
£131,900 |
£348,000 |
|
Sevenoaks |
South East |
77.3% |
£170,500 |
£535,800 |
|
Merton |
London |
77.3% |
£180,400 |
£556,600 |
|
Waltham Forest |
London |
77.1% |
£191,200` |
£492,900 |
Source: Zoopla Research
CAPITAL GAIN
Izabella Lubowiecka, Senior Property Researcher at Zoopla, says: “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.”
