Sellers of detached homes have earned more than twice as much in capital gains compared to flat owners over the past 18 months, according to new research from property portal Zoopla.
The analysis, which reviewed property sales data across England and Wales, shows that the average gain from all home sales during this period was £72,000 – a 38% increase in value since the property was originally purchased. On average, homeowners sold after holding their properties for nine years.
Home size has proven to be a major factor in determining returns, with larger properties delivering significantly higher gains. Detached home sellers recorded average profits of £122,500 – 70% above the national average. Semi-detached homes also performed strongly, generating average gains of £80,000, equivalent to a 44% increase in value.
The percentage uplift for detached homes was similar, at 45%, highlighting how additional living space continues to command a premium in the current housing market.
The findings underscore shifting buyer priorities in recent years, as demand for more space — particularly post-pandemic — has driven up the value of larger homes relative to smaller properties like flats.
Table 1: Average gains by property type
| Property Type | Avg capital gain released during sale (£) | Avg gains released during sale (%) | Avg time in property (years) | Avg sold price (£) | |
| Flat | £27,000 | 15% | 9 | £220,000 | |
| Terraced | £64,250 | 40% | 9 | £236,000 | |
| Semi-detached | £80,000 | 44% | 9 | £273,500 | |
| Detached | £122,500 | 45% | 9 | £410,000 |
Source: Zoopla Analysis 2025
In sharp contrast, sellers of flats over the last 18 months have seen the lowest average gains, netting just £27,000, a 15 per cent increase and less than a quarter of the gains achieved by detached homeowners. This market lag is directly linked to shifting buyer preferences and affordability pressures, with high mortgage costs and the desire for more space driving demand away from flats towards the more robust terraced and semi-detached property types.
The legacy of the global financial crash has created a “Tenure Trap” for some sellers. Across the majority of Great Britain, homeowners who sold after holding their property for 15 to 20 years, made less money than those who sold after a shorter 10 to 15 year period. In Northern England, the average gain for the 15-20 year cohort was just £45,000, £30,000 less than the £75,000 secured by those who held for 10 to 15 years. This market anomaly is a direct result of slower house price recovery outside of southern England following the global financial crash.
Table 2: Gains vs length of homeownership
| Length of homeownership | London | Midlands | Northern England | Southern England | Wales |
| Less than 5 | £40,000 | £28,000 | £27,955 | £30,000 | £32,500 |
| 5 to 10 years | £52,000 | £61,500 | £55,050 | £65,000 | £65,000 |
| 10 to 15 years | £175,000 | £100,000 | £75,000 | £132,000 | £85,005 |
| 15 to 20 years | £235,000 | £85,000 | £45,000 | £136,250 | £60,050 |
| 20+ years | £361,500 | £156,200 | £121,000 | £225,000 | £130,050 |
Source: Zoopla Research 2025
However, extreme long-term ownership still yields the most capital gains, particularly in higher value markets. Those who stayed in their homes for 20 to 25 years bypassed the global financial crash peak entirely and have benefitted from multiple periods of strong growth. The average seller in this cohort in London unlocked a massive £361,500 in capital, the single largest gain across Great Britain. Even outside the capital, gains are substantial for the 20 to 25 year group, securing £225,000 in Southern England and £121,000 in Northern England.
Sellers in London and the South East consistently see the largest monetary gains when a property is sold, which is primarily due to higher property values, longer average tenure and stronger house price growth up until 2016. The average seller in London has gained £130,000 (35 per cent of the average purchase price) while those in the South East averaged £94,000.
Table 3: Average gains by region
| Region | Avg. gains crystalised during sale (£) | Avg. gains crystalised during sale (%) | Avg time in property (years) | Median sold price |
| London | £130,000 | 35% | 10 | £513,000 |
| South East | £94,000 | 35% | 9 | £370,000 |
| East | £84,000 | 36% | 9 | £330,000 |
| South West | £80,005 | 37% | 8 | £303,000 |
| West Mids | £70,000 | 41% | 9 | £247,000 |
| E Midlands | £68,000 | 41% | 8 | £243,000 |
| Wales | £65,000 | 45% | 9 | £210,000 |
| North West | £62,000 | 42% | 9 | £215,000 |
| Yorkshire and the Humber | £55,000 | 38% | 9 | £205,000 |
| Scotland | £37,200 | 24% | 6 | £154,700 |
| North East | £35,000 | 26% | 9 | £165,000 |
| UK | £72,100 | 38% | 9 | £285,000 |
Source: Zoopla Research 2025
This £130k unlocked by the average London seller is enough to purchase an average-priced home outright in 11 local authorities in the North of Britain. Conversely, sellers in the North East lagged behind, gaining just £35,000 on average (26 per cent of the original purchase price), a figure constrained by the region’s house price inflation, which has been slow to recover since the global financial crash.
While London sees the largest cash gain, some regions are achieving strong returns relative to their starting price. Wales, the North West, and the Midlands all recorded appreciation of 41 to 45 per cent, showcasing that while the monetary sums are smaller (e.g., £65,000 in Wales), those who bought at a lower initial price point still stand to benefit from decent gains.
Richard Donnell, executive director at Zoopla, commented: “British homeowners are sitting on sizable capital gains from years of historic house price inflation which varies widely by geography and property type. 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.
“Estate agents currently have the highest stock of homes for sale in over seven years. This is boosting choice for buyers meaning it is very important that sellers are realistic over how they set their asking price. Homes that attract limited interest and require a price reduction can take twice as long to sell.”
Almost 5 million homeowners are currently subscribed to Zoopla’s free MyHome tool which helps them understand and track the value of their home, including the level housing equity, what is selling nearby and how changing the price will impact buyer demand.
The stronger capital gains seen in larger family homes reflect a continued imbalance between housing supply and buyer demand in this segment of the market, according to Nathan Emerson, CEO of Propertymark.
He commented: “Detached and semi-detached properties, particularly those with outdoor space and room to grow, have remained highly desirable, especially following shifts in lifestyle and working patterns post-pandemic.
“However, flats, particularly those in urban centres or with shorter leases, have seen more modest growth due to affordability constraints, leasehold complexities, and evolving buyer preferences. This highlights the need for a targeted housing policy that supports a wider mix of new homes, ensures leasehold reform progresses, and meets the needs of both growing families and first-time buyers.”
Read the orginal article: https://propertyindustryeye.com/property-profit-gap-widens-as-houses-outpace-flats-in-capital-gains/
