Homeowners selling detached houses have made average capital gains of £122,500 in the past 18 months – more than four times the profits achieved by flat owners, according to new research from Zoopla.

The analysis of property sales across England and Wales found that sellers typically secured £72,000 in profit, representing a 38% increase on their original purchase price. The average homeowner spent nine years in their property before selling.

Zoopla’s figures underline the growing financial divide between larger and smaller homes. Detached properties delivered the strongest returns, with sellers gaining an average 45% on their purchase price, followed by semi-detached homes at £80,000 and terraced houses at £64,250. Flats, meanwhile, yielded just £27,000 in average gains – a 15% rise.

The findings highlight the impact of changing buyer preferences, with many purchasers favouring larger properties over the past two years as affordability pressures and high mortgage rates have dampened demand for smaller, urban flats.

THE 15-YEAR TENURE TRAP

The data also reveals a “tenure trap” for some homeowners, particularly in the north of England, where those who sold after owning their property for 15 to 20 years made less money than those who sold after a shorter period.

In the north, average gains for 15- to 20-year owners were £45,000 – around £30,000 less than those who sold after 10 to 15 years. Zoopla said this anomaly reflects the lingering effects of the global financial crash, which saw slower price recovery in many northern markets.

However, those who held their homes the longest have seen the greatest rewards. Londoners who sold after 20 to 25 years realised average gains of £361,500, the highest anywhere in Great Britain. Even outside the capital, long-term owners have seen substantial returns, averaging £225,000 in southern England and £121,000 in the north.

REGIONAL DIVIDE

Sellers in London and the South East continue to enjoy the largest monetary gains thanks to higher property values and longer ownership periods. The average London seller made £130,000 in capital gains – enough to buy an average home outright in 11 local authorities in northern England.

In contrast, sellers in the North East saw average profits of £35,000, reflecting the region’s slower house price growth since the financial crisis.

Yet relative to purchase price, sellers in Wales, the Midlands and the North West have performed well, recording average gains of between 41% and 45%. Welsh sellers made an average £65,000 profit, while those in the West Midlands averaged £70,000.

REALISTIC PRICING IS KEY

Richard Donnell, executive director at Zoopla, said homeowners continue to benefit from historic house price inflation, but future gains are likely to be more modest.

“British homeowners are sitting on sizable capital gains from years of historic house price inflation which varies widely by geography and property type,” he said. “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.”

Donnell added that with the highest level of available housing stock in more than seven years, sellers must be realistic on pricing. “Homes that attract limited interest and require a price reduction can take twice as long to sell,” he said.

Zoopla said almost five million homeowners now use its free MyHome tool to track the value of their properties, monitor equity and see what is selling nearby.