Property Flipping Activity Plummets to Over a Decade Low
New analysis indicates that the practice of "flipping" properties—purchasing homes and reselling them within a twelve-month period—has reached its lowest level in more than a decade across England and Wales. According to a detailed report from property firm Hamptons, this trend reflects significant shifts in the real estate market and regulatory landscape.
A Steep Decline in Flipping Transactions
Hamptons, utilising Land Registry data, calculated that the number of flipped homes has halved from 21,520 in 2016 to just 10,570 in 2025. This represents a mere 1.5% of all housing transactions in England and Wales last year, down from 2.0% in 2024. This proportion is the lowest recorded in over ten years, with the absolute number of flipped properties being the smallest since 2012 and the proportion the least since 2013.
The firm attributes this "long slowdown" largely to the introduction of the second home stamp duty surcharge in 2016, which increased costs for investors. However, the decline in flipping is not uniform across the country, with profitability varying sharply by region.
Regional Disparities in Flipping Profitability
The research highlights that the steepest falls in flipping profitability are concentrated in the South of England. Weaker house price growth combined with higher stamp duty costs have significantly dented returns in this area. In contrast, the North East of England remains a "flipping hotspot," where lower house prices and strong local growth create more favourable conditions.
Popular locations for flipping in the North East include Hartlepool, County Durham, Middlesbrough, Sunderland, and Stockton-on-Tees. Last year, approximately 73.3% of flipped homes still generated a gross profit, but margins have thinned considerably, especially in southern markets.
Expert Insights on the Changing Market
Aneisha Beveridge, head of research at Hamptons, commented on the findings, stating, "Flipping is no longer the profitable venture it once was. There was a time when rundown properties could be bought cheaply, refurbished, and resold at a healthy margin." She explained that stamp duty is only part of the challenge, noting that falling house prices in many southern markets have squeezed returns further.
Beveridge added, "The cost of materials and labour have risen sharply since the pandemic. Even before factoring in stamp duty, refurbishment budgets now stretch much further than they once did, pushing profit margins to their thinnest levels in over a decade." She emphasised that the North, particularly the North East, has remained far more resilient due to lower entry prices keeping stamp duty bills modest and allowing more scope to add value through refurbishment.
In summary, while flipping properties has become increasingly difficult without strong underlying house price growth, investing in relatively cheaper property in areas with robust growth, such as parts of the North East, can still yield solid returns. This creates a rare pocket of the country where flipping can deliver healthy profits, contrasting sharply with the broader national trend of decline.
