According to research by estate agent Hamptons, the average profit or equity gained for houses bought in the last 20 years has hit £108,000 (up from £96,220 in 2021). There figures found that:
Despite average gains being greater in the South and South East, the largest % of purchase price gain rather than the monetary was in Wales. This tells us that London and the South East is not necessarily the best pace to invest in property.
As we have always said, you are probably better off investing £25,000 in 4 investment properties (total £100,000) in Wales or the North East rather than investing £100,000 in one property in London. We have always suggested this to clients.
In addition, one property with a huge gain in London, unless it is your main residence, will mean you get one large ‘hit’ on capital gains tax whereas if you own 4 smaller value properties eleswhere you are likely to get combined higher rents along with more control on taxes by not being forced to sell your one high value property and able to sell off your smaller value properties in stages to best manage capital gains tax liabilities although with capital gains allowances falling to virtually zero, this will make this benefit null and void.