"British homeowners are sitting on sizable capital gains from years of historic house price inflation, which varies widely by geography and property type"
- Richard Donnell - Zoopla
Sellers of detached homes have achieved average gains more than twice those of flat owners in the past 18 months, according to new analysis of property sales data by Zoopla.
Across England and Wales, sellers generated an average gain of £72,000, representing a 38% increase in value since their original purchase. The average time spent in a property before selling was nine years for homes sold during this period.
Bigger homes deliver stronger returns
Property size has been a major driver of value gains over the last 18 months, underlining the premium that additional space can command. Sellers of detached homes earned an average profit of £122,500, 70% higher than the national average. Semi-detached properties also performed well, delivering average gains of £80,000, a 44% increase that closely matched the 45% percentage rise seen among detached homes.
In contrast, sellers of flats achieved the lowest average uplift, earning just £27,000, or 15%. This equates to less than a quarter of the gains made by detached homeowners. The weaker performance of flats reflects changing buyer preferences and affordability pressures, with higher mortgage rates and growing demand for larger spaces pushing buyers toward terraced and semi-detached homes.
The 15-year tenure trap
The long-term impact of the global financial crisis has created what Zoopla describes as a ‘Tenure Trap’. In much of Great Britain, homeowners who sold after 15 to 20 years made smaller gains than those who sold after 10 to 15 years. In northern England, the average gain for those holding a property for 15 to 20 years was £45,000, compared with £75,000 for owners who sold after 10 to 15 years. This pattern reflects slower price recovery in the north following the financial crisis.
However, very long-term ownership continues to deliver the highest capital gains, particularly in higher-value areas. Those who owned their homes for 20 to 25 years avoided the financial crash peak and benefited from multiple growth cycles. In London, this group achieved average gains of £361,500, the highest in Great Britain. Sellers in southern England made £225,000 on average, while those in northern England gained £121,000.
The £130k London benchmark and regional contrasts
London and the South East remain the strongest performers in absolute terms, driven by higher property prices, longer ownership periods, and sustained price growth until 2016. The average London seller gained £130,000, a 35% increase on the original purchase price, while sellers in the South East averaged £94,000.
This £130,000 figure could buy an average-priced home outright in 11 local authorities across northern Britain. By contrast, sellers in the North East saw average gains of £35,000, equivalent to a 26% rise. The region’s slower price recovery since the financial crisis has limited its overall returns.
Although London delivers the largest cash gains, other regions have seen strong percentage increases relative to their starting prices. Wales, the North West, and the Midlands all recorded an appreciation of between 41% and 45%. In Wales, for example, average gains of £65,000 illustrate that lower initial purchase prices can still generate significant returns.
Richard Donnell, executive director at Zoopla, comments: “British homeowners are sitting on sizable capital gains from years of historic house price inflation, which varies widely by geography and property type. The scale of gains from historic price inflation is unlikely to be repeated in future with lower levels of annual price inflation in more recent years than in the past.
“Estate agents currently have the highest stock of homes for sale in over seven years,” Donnell added. “This is boosting choice for buyers, meaning it is very important that sellers are realistic about how they set their asking price. Homes that attract limited interest and require a price reduction can take twice as long to sell.”
Nathan Emerson, CEO of Propertymark, comments: “The stronger capital gains seen in larger family homes reflect a continued imbalance between housing supply and buyer demand in this segment of the market. Detached and semi-detached properties, particularly those with outdoor space and room to grow, have remained highly desirable, especially following shifts in lifestyle and working patterns post-pandemic.
“However, flats, particularly those in urban centres or with shorter leases, have seen more modest growth due to affordability constraints, leasehold complexities, and evolving buyer preferences. This highlights the need for a targeted housing policy that supports a wider mix of new homes, ensures leasehold reform progresses, and meets the needs of both growing families and first-time buyers.”
