Homeowners who bought their current home in the last twenty years are sitting on property gains of £80,000 on average, according to research by property website Zoopla.
As many as six in ten (60%) householders will realise gains of £65,000 or more due in part to house price growth of 78 per cent over the last 20 years, Zoopla found.
Nearly half (48%) of UK homes purchased within the past 10 years have increased in value by over £65,000, Zoopla said.
Homes in London enjoyed the biggest rises with average gains of between £130,000-£140,000, up 71 per cent over the 20-year period. Within the capital, Richmond upon Thames saw 79.8 per cent of homes in the borough add average value gains of £225,100.
Outside of London, south east England saw the highest proportion of homes (70%) increase in value by £65,000 or more due to higher property values in the region and above-average house price growth over the last two decades.
In contrast, the average gains in Wales (58%) and Scotland (35%) were much lower. The north east of England (27%) saw the lowest gains at 27 per cent or £40,000-£45,000.
Traditional commuter towns near London also saw over three quarters of homeowners gaining over £65,000 in property value since they last bought their home. This includes St Albans (78%), Wokingham (78%) and Sevenoaks (77%). All three locations provide access to Central London via train in 40 minutes or less.
Izabella Lubowiecka, Senior Property Researcher at Zoopla, said: “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.
“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.”
Toby Leek, of property professionals body, Propertymark, said: “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.”
