The latest analysis by Zoopla reveals that homeowners who bought their current homes within the last two decades have seen an average increase in property value of £80,000.
This is partly due to a 78 per cent rise in house prices over the past 20 years.
Homeowners who sold their properties in the last year made an average profit of £65,000. In London, 71 per cent of homeowners have seen gains larger than the average UK homeowner who sold their home in the past year (£65,000).
Outside 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 and above-average house price growth over the last two decades.
However, average gains in the North East and Scotland are much lower, typically between £40,000 and £45,000, due to lower house prices and modest 20-year house price growth, especially following the global financial crisis.
However, homeowners don’t necessarily need to live in their property for decades to reap significant gains. Almost half (48 per cent) of homes bought in the last decade have seen their value increase by over £65,000, rising to 55 per cent in Southern England.
In the South West, 58 per cent of properties saw 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). .
Homes in high-value areas and popular commuter towns have experienced the largest property gains over the past twenty years, with 80 per cent of homes in the Cotswolds increasing in value by more than £65,000.
Richmond, often considered one of London’s most desirable suburbs due to its unique atmosphere, abundant green spaces and quick links 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 increasingly seek to balance their budgets with their commuting needs.
Commuter towns in close proximity to London have reported a significant spike in property values, with over three-quarters of owners in areas such as St Albans (78%), Wokingham (78%) and Sevenoaks (77%) realising gains upwards of £65,000 since their last purchase.
These popular locations boast under 40-minute train journeys to Central London and are drawing immense demand from homebuyers.
Equally noteworthy is Trafford in the North West which mirrors these gains, registering a staggering 78% due to local house price inflations driven by its sought-after location near Manchester and its appeal amongst families migrating from urban centres.
Zoopla’s Senior Property Researcher, Izabella Lubowiecka, observed: “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.”
Toby Leek, president of NAEA Propertymark, said: “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.”
“For the many people who choose to purchase their own homes, it remains upbeat news that we continue to witness robust house price growth. When you consider events such as the financial crash of 2008 and the Coronavirus pandemic, which took their toll on property prices and in some cases pushed people into negative equity, it’s positive news to see a long-term trend of house price grown across the marketplace.”
