Home sellers in the UK faced the lowest profits in more than ten years last year, as high interest rates and a cost-of-living crisis took a toll on demand for property. According to a report from broker Hamptons International, the average gross profit for sellers in England and Wales dropped to £91,820 ($112,929) in 2024, reflecting a 42% gain. This marks an 11% decline from £102,650 in 2023, a clear indication that rising costs and market uncertainty have affected earnings.
Aneisha Beveridge, Head of Research at Hamptons, explained that households are struggling with elevated mortgage rates and additional transaction costs, such as stamp duty, making it more expensive to move. “Until property prices recover or transaction and mortgage costs decrease, homeowners are likely to stay put for longer,” Beveridge added.
The UK housing market endured a particularly challenging 2024, driven by high mortgage rates that diminished competition among buyers and limited the ability of sellers to increase asking prices. The recent pullback in rate-cut expectations led the five-year swap rate to its highest level since May, raising concerns that home loan costs may rise again in the near future.
Hamptons reported that the average seller in England and Wales saw their profit margins slip from 48% in 2023. The most significant drop occurred in London, where steep transaction costs and sluggish house price growth have led to fewer people moving. In fact, only 25% of home sellers in the capital had bought and sold within five years in 2024, compared to 34% nationally. The average London seller made £172,350 in profit last year, approximately £32,000 less than in 2023. This represents the first time in nine years that profits in the capital have fallen below £200,000.
Despite these setbacks, 91% of home sellers in England and Wales still managed to make a profit in 2024, with nearly a third earning six-figure gains. Hamptons also forecasted a 3% increase in house prices across the UK this year, followed by 3.5% growth in 2026, driven in part by a long-term decline in housebuilding that is tightening supply and keeping prices elevated.
Beveridge noted that the ongoing shortage of new homes is further hindering prospective buyers from entering the market, forcing more Britons to turn to renting. “Homeowners need to inject thousands of pounds from their own pocket to make a move financially viable,” she said. This financial burden often deters many potential sellers, continuing to weigh on the market’s recovery.
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