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Why home buyers in 2009 were quids in selling in 2018

Last year would have been the most profitable of any in the last 14 years for those selling a property they had bought in 2009.

Land Registry data examined by estate agents Savills revealed the profits and losses by year of purchase and by region to reveal that those bold enough to buy in the wake of the 2008 financial crash – and who held on to their property – would have been quids in if they had finally only sold up in 2018.

Market is not one-size-fits-all

Savills’ research confirmed the important role that market timing and the influence of regional factors play in determining property’s worth.

Their figures show that those who bought a home in 2009 would have made an average profit of £93,378 if they had sold last year.

Lucian Cook, residential research director at Savills, 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.”

Luck not judgment

Mr Cook also noted that buying in 2009 would have been “more luck than judgment” for most home buyers because only one in 40 sellers in 2019 had actually bought in 2009.

He 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.”

The huge variations in the regional housing market were also revealed by Savills. Two in five of those who bought in London and the south of England within the last 15 years have made more than £100,000 after selling up, but only 6 percent of sellers in the north of England achieved the same profit level.

Almost one in five (19 percent) of property sales resulted in a loss in northern England over the last 15 years, but only 4 percent of sales in London and the south did the same.

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