People who purchased a house in 2009, during the financial crisis, made more profit if they sold last year than those who purchased in any of the previous 14 years, a new study has found.
An investigation by estate agency Savills examined who had benefited from property in the last 15 years.
The study highlighted factors such as the importance of market timing for determining profits from a property sale and the impact location had on sales.
Lucian Cook, Savills’ Residential Research Director, said: “Over the last 15 years it really has made a difference as to when and where you bought in terms of the profits you’ve made. It reinforces that it’s not a one-size-fits-all market.”
The estate agent calculated profits (or losses) by year of purchase and region by examining the Land Registry data on sellers in England and Wales in 2018.
It found that purchasers in 2009 were taking advantage of the chaos of the financial crisis when house prices were falling across many parts of the country.
According to the data, purchasers in 2009 made a typical £93,378 profit from a 2018 sale.
Mr Cook added: “The mortgage markets were locked up, but I also suspect some of this is about whether people were brave enough to do it and whether some people in 2009 had enough accumulated equity at that point to be able to make the move.”
40 per cent of people who had bought property in London and the south of England over the past 15 years made more than £100,000 when selling last year, yet only six per cent did so in the north of England.
The highly localised nature of the property market in England and Wales is underscored by stark variations in the profits to be made in different regions.
Selling a property can result in a substantial tax bill depending on your circumstances, which is why it makes sense to seek professional advice before the disposal of property. To find out RDP Newmans can help you with the sale of your next property, please speak to our team.