The average homeowner in England and Wales who sold up last year made an average of £102,650 more than the amount they had originally paid for their property, according to research.

Hamptons, which carried out the study, looked at householders selling in 2023 who had bought their homes in the past 20 years.

But while the estate agency found that those who had bought a property within this timeframe and sold it last year sold for an average of just over £100,000 more than they paid, this was down from a record gross profit of £112,930 a year earlier.

Some 93% of those selling a home in 2023 sold for more than they had paid, having owned their property for an average of nearly nine years.

In percentage terms, the average seller in England and Wales last year made a 48%, down from 54% in 2022.

The findings come despite property prices falling at their fastest rate in 12 years last autumn.

Average house prices decreased by 2.1% in the 12 months to November 2023, down from a drop of 1.3% in the 12 months to October 2023, according to the latest ONS House Price Index.

The average house price stood at £285,000 in November 2023, down £6,000 year-on-year.

The average 2023 seller had owned their home for 8.9 years, down slightly from 9 years a year earlier.

One in 12 – 8% – of those who sold in 2023 had purchased their home two years earlier, increasing from 5% of those who sold in 2022 who had made their purchase two years earlier.

Aneisha Beveridge, head of research at Hamptons, said: “Despite falling house prices last year, 93% of households still sold their home for more than they paid, netting themselves just over £100,000 on average.

“These proceeds are mostly reinvested back into the housing market and go towards the purchase of another home, so they’re rarely realised in cash terms.

“However, the numbers illustrate how the scale of historic price growth sheltered movers last year, freeing up cash to cover moving costs.

“Double-digit house price increases since Covid have meant households moving within two years can achieve a higher price than they paid. Historically these are people moving due to a change in circumstances.

“However, the spike in the share of households moving within two years goes beyond that and suggests an unwinding of ‘the race for space’.

“Most of these sellers are selling larger homes in the country, often in favour of a move back to the suburbs or city.

“Households rarely move when they’re faced with the prospect of selling their home for less than they paid. Generally, the chances of selling at a loss peak within the first few years of ownership.

“But for some Londoners, that stretches back to when parts of the market peaked in 2016. Many households who bought a home between 2014 and 2016, predominantly in prime central London, face selling at a loss, which has reduced sales numbers over the last few years.

“However, we expect prices to start rising in London later this year which may start to unlock some of these moves.”