Find out which regions have benefited the most
UK homeowners who purchased their properties in the last 20 years have seen an average gain of £80,000 in property value, according to new research by Zoopla.
The property website’s analysis found that 60% of homeowners experienced gains of at least £65,000, with the rise attributed to a 78% increase in house prices over the past two decades. Homeowners who sold their properties in the last 12 months earned an average profit of £65,000.
In London, 71% of homeowners have seen gains surpassing the £65,000 average. The South East follows closely, with 70% of homes increasing in value by the same amount, driven by higher property prices and stronger house price growth in the region.
By contrast, average gains in the North East and Scotland are lower, ranging between £40,000 and £45,000, due to modest price increases over the same period, particularly after the global financial crisis.
“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,” said Izabella Lubowiecka (pictured), senior property researcher at Zoopla.
“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 could be sitting on a small fortune.”
Zoopla’s data shows that long-term homeownership is not a prerequisite for substantial gains. Nearly half (48%) of homes purchased in the last 10 years have appreciated by £65,000 or more, with this figure rising to 55% in Southern England. The South West leads the UK, with 58% of homes gaining £65,000 or more, followed by the South East (57%) and the East of England (53%).
Homes in affluent areas and commuter towns have experienced the most significant value increases. In the Cotswolds, 80% of properties have appreciated by more than £65,000 in the last 20 years. Richmond, a desirable London suburb known for its green spaces and fast links to central London, has seen a similar percentage of homes increase by this amount.
Affordable suburbs in East London, such as Redbridge, Waltham Forest, and Barking and Dagenham, have also seen substantial growth, with 77% of homeowners gaining £65,000 or more since their purchase. These areas have benefited from their appeal to buyers seeking a balance between affordability and commuting convenience.
Traditional commuter towns near London have also fared well, with over three-quarters of homeowners in St Albans (78%), Wokingham (78%), and Sevenoaks (77%) reporting gains of £65,000 or more. These towns offer train services to central London in 40 minutes or less.
Outside the South, Trafford in the North West has seen similar gains, with 78% of homeowners benefiting from rising house prices, largely due to the area’s proximity to Manchester and its appeal to families.
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