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Three million saw property’s value rise by more than £50K last year

Christina Hoghton
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Christina Hoghton

Over nine in 10 homeowners saw their property’s price rise overall in 2022, despite a dip in values at the end of the year

The vast majority (92%) of homeowners saw the value of their home rise in 2022, said Zoopla, with an average capital gain of £19,000.

The property portal added that nearly three million homeowners made more than £50,000.

Year of two halves

2022 kicked off with a strong start, due to record-low mortgage rates and a continuation of the pandemic-driven desire to move, according to Zoopla.

These factors, combined with a shortage of homes for sale, meant house price growth remained strong up until the summer.

However, Zoopla admitted the second half of last year was ‘turbulent’ and, from July to December, nearly one in three saw the value of their home decline by an average of £4,400.

Of the UK’s 30 million homes, 16 million experienced value losses by the end of 2022.

But for the majority of these homeowners, the drop is small. The average value reduction in the final three months of 2022 was £3,900.

Net gains

When compared to the average value gain of £19,000 over the course of the whole year, most homeowners still saw the value of their home over 2022, despite a dip at the end.

It’s also worth noting that the average home gained £32,400 during the first two years of the pandemic.

Within the group of 16 million homeowners experiencing value losses in the last 3 months of 2022, only 2.3 million (or 8%) registered a loss over the year, averaging £7,300.

Regional house prices

The reduction in home values over the second half of 2022 was concentrated in markets where price gains have been slower over the last year, said Zoopla.

It noted that homeowners in London have seen the largest number of reductions, followed by the South East.

The average reduction between June and December was £8,400 in London and £5,200 in the South East.

Outside of London and the South East, three-quarters of homeowners saw the value of their home increase by an average of £6,600.

And price falls in these areas were modest, averaging £3,800.

What’s going to happen in 2023?

Price falls have been relatively small so far, but are predicted to grow further in the first part of 2023.

Zoopla said it is predicting national house price falls of around 5% for this year.