Zoopla reveals a third of UK homeowners made more than £50k on their property
20 July 2022: Zoopla’s latest research reveals a third of UK homeowners made more than £50k on their property over the pandemic… but 800,000 owners see their homes fall in value by more than 5%.
Key points from research:
- Value of all UK homes combined surpasses the £10 trillion mark for the first time (£10.1 – based on value of the UKs 29.5m homes in April 2022)
- 15% increase in value of £1.3 trillion over the pandemic*
- Average UK home has risen £48 per day*
- A third (32%) or 9.4m homes have increased in value by more than £50,000
- Londoners have seen their homes growth the least in value as the impetus for gains shifts northwards
New research from Zoopla reveals the total value of UK homes has surged to over £10 trillion this year as strong demand and a lack of supply continues to drive house prices higher.
With the average** UK household income £34,100, some properties are making more than their owners salaries as the total value of homes has increased by £1.3 trillion, netting the average homeowner £48 per day in capital gains since the start of the pandemic.
One in three homes increase by more than £50,000
The Value of Housing Report takes into account the change in value of every home in the UK. Using Zoopla’s valuation estimate, it monitors the rise and fall of prices with data revealing that 9.4m homes (32% of all homes) have grown in value by more than £50,000.
Homeowners gained the most within affordable regions
Throughout the UK, Wales has seen the greatest increase in value (+22%) followed by the North West and South West (both 20%). In London however, the increase is just 7%, less than half the national average as affordability factors and the impact of the pandemic and working from home dented the demand for homes, especially in high value inner areas of London and the market for apartments..
The greatest value of homes are located in London and the South east which account for 23.5% the of all the value, of all homes but weaker growth means the share of housing wealth has fallen from 26% pre-pandemic.
Table 1 – Value of housing by country and region April 2022 and February 2020:
| Country/ English region | Value of housing today £bn (Apr 2022) | Value of housing pre-pandemic £bn (Feb-2020) | % change in value over pandemic 2020-2022 | Average property value
(Apr 22) |
| London | £2,398 | £2,248 | 7% | £516,000 |
| South East | £1,879 | £1,633 | 15% | £394,000 |
| Eastern | £1,109 | £964 | 15% | £350,000 |
| South West | £965 | £803 | 20% | £320,000 |
| North West | £765 | £636 | 20% | £192,000 |
| West Midlands | £671 | £573 | 17% | £225,000 |
| East Midlands | £569 | £476 | 19% | £235,000 |
| Yorks. and Humber | £547 | £460 | 19% | £186,000 |
| Scotland | £493 | £435 | 13% | £164,000 |
| Wales | £335 | £274 | 22% | £201,000 |
| North East | £213 | £182 | 17% | £144,000 |
| Northern Ireland | £143 | £125 | 15% | £158,000 |
| UK | £10,088 | £8,809 | 15% | £266,000 |
Source: Zoopla
Higher average prices explain why over a third of these homes are located in London and the South East. However, the South West region contains 1.9m homes that grew by more than £50,000, the most for any area. A further 9.4m homes grew by between £25,000 and £50,000 (see table 2).
Table 2 – Number of homes by price increase from pre pandemic (Feb-2020) to April 2022:
| Price change – Feb 2020 to April 2022 | Number of homes (millions) | % homes |
| Unchanged or lower | 1.7 | 6% |
| Higher by up to £25k | 8.8 | 30% |
| Higher – £25k to £50k | 9.4 | 32% |
| Higher – £50k to £75k | 4.6 | 16% |
| Higher – £75k to £100k | 2.0 | 7% |
| Higher – over £100k | 2.9 | 10% |
Source: Zoopla
Not everyone has seen gains during this period with the value of 1.6m homes (5.7%) currently the same or lower than pre-pandemic. Half of these homes (0.8m) have seen a value decline of 5 per cent or more with most concentrated in inner London where the impact of the pandemic has hit travel, working patterns and demand for homes.
Zoopla’s analysis reveals 28% of the homes declining by more than 5% were in London – of which half were in the central London boroughs of Westminster, Kensington & Chelsea, Islington, Hammersmith & Fulham, Tower Hamlets and Southwark. Aberdeen and Aberdeenshire, where the economy suffers from the historic decline in oil prices accounted for a further 6% of homes declining in value.
Commenting on Zoopla latest Value of UK Housing report, Andy Marshall, Chief Operating Officer at Zoopla, said:
“The impact of the pandemic on the value of housing across the UK cannot be underestimated, with one in three homeowners making over £50,000 on their property during the pandemic.
“This provides a clear opportunity for agents when it comes to nudging those high value homeowners to sell their properties – highlighting how their property has significantly increased in value over the course of the pandemic could be the final push they need to take the plunge and list their property for sale.”
* Since February 2020
** Average household income £34,100 as of 2021 – Office of National Statistics
Kindly shared by Zoopla
Main article photo courtesy of Pixabay
