One in three home sellers in London are doubling their money
House price growth has soared during the average of nine years that people own their home for
ne in three people who sold their home in London this year doubled their money, according to research by Hamptons International.
They sold up after an average of around nine years, over which time house price growth has soared. It came as separate analysis by eMoov found that demand for homes in the capital has sunk 25pc this year, amid a crunch on affordability.
Hamptons found that in Kensington and Chelsea, the average home sale made its owners a profit of £940,494, with 45pc of owners doubling their money.
Johnny Morris, head of research at Hamptons, said: “House prices have grown considerably over the nine years the average seller has owned their home. Many sellers will have added value by renovating, extending or developing but the bulk of their gains come from price growth.”
He added: “The London housing market has been cooler than the rest of the country in 2017, but London sellers still make the largest gains, by a long way… Even with slowing price growth most owners are still sitting on plenty of growth from previous years.”
Across the country, the average profit on selling a home was £92,466, and 92pc of sellers sold their home for more than they paid for it.
The analysis by eMoov, which calculates demand based on the supply and demand balance between stock listed for sale and those sold, found that there was a lot of diversity within the UK’s housing market: the most in-demand place was Solihull, at 65pc, while the lowest was Aberdeen. Demand also grew in Bristol, Rugby and Edinburgh, where activity on the housing market is increasing.
Even within London there was a lot of difference, with Bexley, Havering and Barking and Dagenham - all more affordable areas - increasing demand, while the most expensive boroughs - Westminster and Kensington and Chelsea - had the lowest levels.
Across the UK, demand has fallen just 4pc. Russell Quirk, founder of eMoov, said: “A marginal fall in demand over the last year reflects the tough market conditions that have been prevalent since the Brexit vote and it’s encouraging at least, that buyer demand has remained as high as it currently is.”